[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1427.12]

[Page 490-491]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1427_COTTON--Table of Contents
 
     Subpart A_Nonrecourse Cotton Loan and Loan Deficiency Payments
 
Sec.  1427.12  Liens.

    (a) Waivers that fully protect the interest of CCC must be obtained 
before loan disbursement, notwithstanding provisions in Sec.  
1427.19(h), if there are any liens or encumbrances on the cotton 
tendered as collateral for a loan, even though the liens or encumbrances 
are satisfied from the loan proceeds.
    (b) CCC may elect to accept cotton as loan collateral that has 
warehouse receiving, compression, or other charges without a lien waiver 
if the producer at the time of loan application agrees to reimburse CCC 
for any such charges

[[Page 491]]

that CCC may pay on behalf of the producer or that reduce the value of 
the cotton delivered to CCC.

[71 FR 51427, Aug. 30, 2006]