Loan Processing By LSAs LSA Loan Processing Flow

Loan Processing By LSA’s

LSA Loan Processing Flow • Make CCC holder of bales • Complete CCC Cotton A-5 • Complete CCC Cotton A and A-1 • Obtain signatures • Submit “A” transaction to ACRS • Receive funds • Issue funds to producer • File and deliver executed loan documents

CCC Cotton A-5 • See 22 CN paragraph 37 E • Date doc received is the later of the following dates: – the date of receipt from the producer of any paper documents necessary to complete the loan, such as a lien waiver • Note: The date by which a lien search is conducted is not applicable to this item. – the date CCC was made holder of EWR’s – if applicable, the date paper warehouse receipts were delivered to LSA.

CCC Cotton A • See 22 -CN paragraph 38 C • Retain original in locked fireproof file • Copy to producer • See paragraph 40 E for calculation examples • Actual LSA examples

Seed Cotton Loans • Are recourse so cannot be processed through • • • ACRS and must be obtained by producers at FSA offices However, proceeds from LSA prepared loans or LDP’s for same cotton may be jointly payable to producer and CCC to pay off seed cotton loans LDP proceeds from LSA take precedence over assignments See 22 -CN paragraph 41

Pop Quiz

Can an LSA disburse a seed cotton loan?

No