(a) Peanuts loans to individual producers may be obtained through:
(1) County offices; or
(2) A designated Marketing Association or a CMA approved by CCC.
(b) The loan documents shall not be presented for disbursement unless the peanuts pledged as collateral for the marketing assistance loan is eligible in accordance with Sec. 1421.8. If the peanuts were ineligible at the time of the disbursement, the total amount disbursed under loan, or as an LDP, plus charges and interest shall be refunded promptly.