[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: 7CFR1427.173]

[Page 508-509]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1427_COTTON--Table of Contents
 
                  Subpart D_Recourse Seed Cotton Loans
 
Sec.  1427.173  Foreclosure.

    Any seed cotton pledged as collateral for a loan which is abandoned 
or which has not been ginned and pledged as collateral for a nonrecourse 
loan under subpart A of this part by the seed cotton loan maturity date 
may be removed from storage by CCC and ginned and the resulting lint 
cotton warehoused for the account of CCC. The lint cotton and cottonseed 
may be sold, at such time, in such manner, and upon such terms as CCC 
may determine, at public or private sale. CCC

[[Page 509]]

may become the purchaser of the whole or any part of such cotton and 
cottonseed. If the proceeds received from the sales of the cotton are 
less than the amount due on the loan (including principal, interest, 
ginning charges, and any other charges incurred by CCC), the producer 
shall be liable for such difference. If the proceeds received from sale 
of the cotton are greater than the sum of the amount due plus any cost 
incurred by CCC in conducting the sale of the cotton, the amount of such 
excess shall be paid to the producer or, if applicable, to any secured 
creditor of the producer.