---
kind: "section"
citation: "7 C.F.R. § 1421.110"
title: "7"
number: "1421.110"
heading: "Commodity certificate exchanges."
url: "https://uscodex.org/cfr/7/1421.110"
---

# §1421.110. Commodity certificate exchanges.

- (a) For any outstanding marketing assistance loan, a producer may purchase a commodity certificate and exchange that commodity certificate for the marketing assistance loan collateral.
- (b) **The exchange rate is the lessor of—**
  - (1) The loan rate and charges, plus interest applicable to the loan; or
  - (2) The prevailing world market price, as determined by CCC, or the alternative repayment rate for all other commodities, as determined by CCC.
- (c) Commodity certificate exchanges may not be used when locking in a repayment rate under [§ 1421.10](/cfr/7/1421.10.md).
- (d) Producers must request a commodity certificate exchange on or before loan maturity in person at the FSA county office that disbursed the marketing assistance loan by:
  - (1) Completing a written request on the form or providing the information as required by CCC;
  - (2) Purchasing a commodity certificate for the exact amount required to exchange the marketing assistance loan collateral; or
  - (3) **Immediately exchanging the purchased commodity certificate for the outstanding loan collateral.**
- (e) Loan gains realized from a commodity certificate exchange are not subject to AGI provisions specified in [part 1400](/cfr/7/part1400.md) of this chapter.

## Notes

### Amendments

[86 FR 70705, Dec. 13, 2021]

### Source

Source: 67 FR 63511, Oct. 11, 2002, unless otherwise noted.

### Authority

Authority: 7 U.S.C. 9031-9040 and 15 U.S.C. 714b and c.

### Amendments

[86 FR 70705, Dec. 13, 2021]