[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1427.173]

[Page 530]
 
                          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 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.