---
kind: "section"
citation: "7 C.F.R. § 1427.16"
title: "7"
number: "1427.16"
heading: "Movement and protection of warehouse-stored cotton."
url: "https://uscodex.org/cfr/7/1427.16"
---

# §1427.16. Movement and protection of warehouse-stored cotton.

- (a) CCC may insure or reinsure stored cotton against any risk, or otherwise take an action it deems necessary to protect the interest therein of CCC.
- (b) A producer may transfer cotton loan collateral subject to the following conditions:
  - (1) The cotton is represented by an electronic warehouse receipt;
  - (2) The request is submitted by a producer or a properly designated agent of the producer;
  - (3) The transfer is agreed to by the receiving warehouse operator;
  - (4) The CCC MAL that is secured by such cotton matures at least 30 days after the date on which the request for the transfer is submitted to CCC; and
  - (5) Any charges, fees, costs, or expenses incident to the transfer of cotton loan collateral under this paragraph must be paid by the requestor of the transfer.
- (c) CCC will exclude from the calculation of any storage credits payable under [§ 1427.19](/cfr/7/1427.19.md) the following periods:
  - (1) The period during which the cotton is in transit between warehouses; and
  - (2) Any period beyond 75 days starting from the date of transfer from the shipping warehouse, unless the shipping warehouse is:
    - (i) Not in compliance with any of the terms of its Cotton Storage Agreement, (ii) Storing cotton loan collateral outside, or
    - (iii) **Under common ownership with the receiving warehouse.**

## Notes

### Amendments

[71 FR 51427, Aug. 30, 2006, as amended at 73 FR 65721, Nov. 5, 2008; 80 FR 139, Jan. 2, 2015]

### Source

Source: 67 FR 64459, Oct. 18, 2002, unless otherwise noted.

### Authority

Authority: 7 U.S.C. 7231-7237, 7931-7936, 9011, and 9031-40, 15 U.S.C. 714b and c.

### Amendments

[71 FR 51427, Aug. 30, 2006, as amended at 73 FR 65721, Nov. 5, 2008; 80 FR 139, Jan. 2, 2015]