---
kind: "section"
citation: "7 C.F.R. § 1427.22"
title: "7"
number: "1427.22"
heading: "Commodity certificate exchanges."
url: "https://uscodex.org/cfr/7/1427.22"
---

# §1427.22. Commodity certificate exchanges.

- (a) For any outstanding marketing assistance loan provided for upland or ELS cotton, a producer may purchase a commodity certificate and exchange that commodity certificate for the marketing assistance loan collateral.
- (b) **The exchange rate is the lesser of—**
  - (1) The loan rate and charges, plus interest applicable to the loan; or
  - (2) **The adjusted world price for upland cotton or ELS cotton as determined by CCC.**
- (c) Producers must request a commodity certificate exchange on or before loan maturity in person at the FSA county office 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; and
  - (3) **Immediately exchanging the purchased commodity certificate for the outstanding loan collateral.**
- (d) Gains realized from a commodity certificate exchange are not subject to AGI or payment limitation provisions specified in [part 1400](/cfr/7/part1400.md) of this chapter.

## Notes

### Amendments

[86 FR 70706, Dec. 13, 2021, as amended at 91 FR 42332, July 9, 2026]

### 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

[86 FR 70706, Dec. 13, 2021, as amended at 91 FR 42332, July 9, 2026]