(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 shall not be presented for disbursement unless the cotton covered by the mortgage or pledged as security is eligible under Sec. 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 shall be refunded promptly. [67 FR 64459, Oct. 18, 2002, as amended at 73 FR 65720, Nov. 5, 2008]