7 CFR 1427.6 : Agriculture (§ 1.1 To Parts 4291-4299) — (§ 1200.1 To § 1599.17) — Regulations Of The Department Of Agriculture (Continued) (§ 1200.1 To § 1599.17) — Commodity Credit Corporation, Department Of Agriculture (§ 1400.1 To § 1499.17) — Loans, Purchases, And Other Operations (§ 1410.1 To § 1471.14) — Cotton (§ 1427.1 To § 1427.1208) — Nonrecourse Cotton Loan And Loan Deficiency Payments (§ 1427.1 To § 1427.25) — Disbursement of MALs.

(a) Individual producers may request loans from:

(1) FSA County Service Centers;

(2) Loan servicing agents; or

(3) An approved cotton clerk who has entered into a written agreement with CCC on a form prescribed by CCC.

(b) Loan proceeds may be disbursed by CCC or a cotton commercial bank.

(c) The loan documents will not be presented for disbursement unless the cotton covered by the mortgage or pledged as security is eligible under § 1427.5. If the cotton was not eligible cotton at the time of disbursement, the total amount disbursed under the loan, and charges plus interest will be refunded promptly.