(a) Loans on cotton represented by order bills of lading will be available only in areas and during the periods specified by the New Orleans office where there is a shortage of storage space and where the necessary arrangements for handling the cotton may be made.

(b) Cotton represented by order bills of lading will be eligible for a loan only when it is shipped by an approved receiving agency as agent for the producer. Warehousemen, ginners, and other responsible parties in areas where such loans are available may be approved to act as receiving agencies by the New Orleans office. Receiving agencies will enter into Receiving Agency Agreements with CCC. When receiving agencies are approved, notifications will be given by letter or published lists.

(c) A producer in any such area who is unable to find storage space in his local area and who wishes to obtain such a loan should deliver his cotton to a receiving agency with the request that it ship the cotton as agent for the producer, in accordance with shipping instructions furnished by CCC, to a warehouse where storage space is available. The receiving agency will complete the Schedule of Pledged Cotton on a Form A. If the receiving agency is not a warehouseman, it will have the cotton weighed by a public or licensed weigher and will secure a Weight and Condition Certificate in the form prescribed by CCC and execute the Receiving Agency's Certificate. The receiving agency will ship the cotton, secure order bills of lading in a form acceptable to CCC, and deliver to the producer the bills of lading, together with the Form A and Weight and Condition Certificates (if any). If the receiving agency is a warehouseman, it will be permitted to collect fees in accordance with § 427.1320 and a fee of not to exceed 10 cents per bale to cover the costs of preparation of shipping documents. If the receiving agency is not a warehouseman, it will, for the purpose of payment of gin compression only, be considered as a warehouseman and will be permitted to collect from CCC charges for gin compression as provided in § 427.1320 and will be permitted to collect from producers a fee not in excess of the fee set forth in the Receiving Agency

Loans on cotton to be reconcentrated I will be available only on cotton stored at warehouses approved by the New Orleans office in areas where there is congestion and lack of storage space. The warehouseman will enter into Reconcentration Agreements (Form CCC Cotton 29) with CCC. Warehouse receipts covering cotton to be reconcentrated un- | der a Reconcentration Agreement must be in a form acceptable to CCC and must provide for delivery of the cotton to the order of CCC. Block warehouse receipts covering cotton to be reconcentrated under a Reconcentration Agreement will be accepted. A producer who desires to obtain a loan in this manner should request the warehouseman to issue a warehouse receipt to him in the form specified above and must furnish written authorization to the warehouseman for the reconcentration of the cotton after which the warehouseman will ship the cotton. The Forms A and warehouse receipts covering cotton to be reconcentrated under a Reconcentration Agreement must show the reconcentration order number under which the cotton will be shipped. The producer will obtain a loan on these documents in the usual manner, and after receipt of the loan documents, CCC will surrender the warehouse receipts to the warehouseman. § 427.1323 Tender of Forms A by lending agencies.

Forms A evidencing loans disbursed by a lending agency, which has entered into a Form D agreement prior to disbursing the loans, shall be tendered to CCC at the New Orleans office on Form C, accompanied by warehouse receipts, order bills of lading, or other documents specified by the New Orleans office, classification memorandums, and any other documents required to be delivered by the producers in connection with the loans as set forth in § 427.1308, within 15 days after the dates of disbursement

of the loans except where later tender is approved by the New Orleans office. Forms A may be tendered directly to CCC at the New Orleans office or through other approved lending agencies. Separate Forms C shall be used for upland and each type of extra long staple cotton, for Forms A secured by warehouse receipts (nonreconcentrated cotton), for Forms A secured by warehouse receipts (reconcentrated cotton), for Forms A secured by order bills of lading, and for Forms A executed under powers of attorney. Each Form C shall state

whether the lending agency desires CCC to effect settlement by cash payment or by a certificate of interest. Upon receipt of the loan documents by the New Orleans office, they will be examined and, if found acceptable, will be settled for by cash payment or by issuance of a certificate of interest, as directed by the lending agency, except that certificates of interest will be issued only to commercial banks. If a certificate of interest is issued, the Forms A will be placed in a pool, and the certificate shall represent an interest in the pool. Lending agencies which have previously been approved by CCC as eligible to draw drafts on CCC may, subject to such instructions and requirements as CCC may hereafter from time to time prescribe, obtain immediate advance payment for Forms A they tender to CCC by drawing sight drafts with enclosed Forms C on CCC through a Federal Reserve bank or branch bank approved by CCC. Forms

A covered by such drafts must be immediately submitted to the New Orleans office.

In any case where there is loss or damage to cotton which occurs while such cotton is pledged to CCC, CCC shall have the right to determine and file claims against any liable parties for the resulting loss. Upon determination of the quantity of the lost or damaged cotton securing a loan, CCC will give credit for the loan value (including charges and interest) of such cotton. If the proceeds of the claim exceed the loan value of such cotton, the excess proceeds shall be remitted to the producer or, if the loan has been repaid, to the party repaying the loan.

If a producer desires to sell his equity in upland or extra long staple cotton pledged as security for a loan, he must use a Release of Warehouse Receipts (Form CCC Cotton AA, referred to in this subpart as "Form AA"). Such form may be obtained only from the county office in the county in which the cotton was produced. A producer who desires to appoint an attorney-in-fact to act in his place and stead in selling his equity in loan cotton to another shall use Power of Attorney (Form CCC-819, referred to in this subpart as "Form 819") which must be filed with the New Orleans office and an executed copy filed with the applicable county office. To obtain the Form AA, the producer may take his copy of the Form A to the applicable county office, or he may request the applicable county office by telephone or by written communication to transmit a validated Form AA to him or a person designated by him. In the event the "Producer's Copy" of the Form A has been lost or destroyed, he may obtain a duplicate from the New Orleans office. (a) If the producer presents his copy of the Form A to the county office, the county office shall prepare the Form AA in accordance with the producer's designation of the bales of cotton to be covered by the Form AA. After the designated bales are entered in the Schedule of Cotton on the Form AA, the county office shall line through the corresponding warehouse receipt numbers that appear on the "Producer's Copy" of the Form A to show that the warehouse receipts representing such bales of cotton are being sold by the producer. No warehouse receipt number shall be entered on the Form AA by the county office unless it appears on the "Producer's Copy" of the Form A and is not shown on this form as having been previously sold or redeemed by the producer. The producer must designate the person to whom he is transferring his remaining interest in the cotton and sign and date the Producer's Equity Transfer Agreement in the spaces provided on the Form AA.

(b) If the producer requests the county office by telephone or by written communication to transmit a validated Form AA to him or a person designated by him, the county office shall enter the name of the producer requesting the Form AA in the space provided

on the form. After the date of the issuance of the form has been entered by the county office and the signature and the title of the county office employee validating the Form AA has been entered on the form, the county office shall promptly transmit the validated Form AA to the producer or the person designated by him. The Form AA shall be prepared by the producer or someone acting for him in accordance with instructions on the reverse of the Form AA.

(c) If the equity purchaser fails to complete the Redemption Request on the Form AA and present or mail the form to CCC, in care of the New Orleans office, within 15 days after the date of issuance of the Form AA by the county office, the equity transfer will be void. It shall be the responsibility of the equity purchaser to see that all necessary entries have been made on the Form AA. Upon receipt of the Form AA, the New Orleans office will forward the warehouse receipts to the bank designated by the person who has signed the Redemption Request with directions to the bank to release the warehouse receipts to such person upon payment of the loan value of the cotton plus applicable charges and interest. Banks may accept valid Cotton Export Payment Certificates (Form CCC-840, referred to in this subpart as "Form 840") issued under the cotton export program in payment of all or part of the amount due on CCC loans on upland cotton. If payment is not effected within 5 business days after the date warehouse receipts are received by the bank or prior to the time at which the loan matures and CCC acquires the cotton, whichever is earlier, the equity transfer will be void, and the bank will return the warehouse receipts to the New Orleans office. Repayments will not be accepted after CCC acquires the cotton. All charges assessed by the bank to which the warehouse receipts are sent must be paid by the person redeeming the cotton.

§ 427.1326 Repayment by producer.

If a producer desires to redeem one or more bales of cotton pledged to CCC as security for a note, he must use a Form AA which may be obtained only from the county office in the county in which the cotton was produced. A producer who desires to appoint an attorney-infact to act in his place and stead to redeem his loan cotton shall use Form

819 which must be filed with the New Orleans office and an executed copy filed with the applicable county office. To obtain the Form AA, the producer may take his copy of the Form A to the applicable county office, or he may request the applicable county office by telephone or by written communication to transmit a validated Form AA to him or a person designated by him. In the event the "Producer's Copy" of the Form A has been lost or destroyed, he may obtain a duplicate from the New Orleans office.

(a) If the producer presents his copy of the Form A to the county office, the county office shall prepare the Form AA in accordance with the producer's designation of the bales of cotton to be redeemed. After the bales to be redeemed are entered in the Schedule of Cotton on the Form AA, the county office shall line through the corresponding warehouse receipt numbers that appear on the "Producer's Copy" of the Form A to show that the warehouse receipts representing such bales of cotton are being redeemed by the producer. No warehouse receipt number shall be entered on the Form AA by the county office, unless it appears on the "Producer's Copy" of the Form A and is not shown on this form as having been previously sold or redeemed by the producer. The producer must designate the bank to which the warehouse receipts are to be forwarded and must sign and date the Redemption Request in the spaces provided on Form AA.

(b) If the producer requests the county office by telephone or by written communication to transmit a validated Form AA to him or a person designated by him for use by him in the redemption of his cotton, the county office shall enter the name of the producer requesting the Form AA in the space provided on the form. After the date of the issuance of the form has been entered by the county office and the signature and title of the county office employee validating the Form AA have been entered on the form, the county office shall promptly transmit the validated Form AA to the producer or the person designated by him. The Form AA shall be prepared by the producer or someone acting for him in accordance with instructions on the reverse of the Form AA.

(c) The producer must complete the Redemption Request on the Form AA

and present or mail the form to CCC, in care of the New Orleans office, within 15 days after the date of the issuance of the Form AA by the county office. It shall be the responsibility of the producer to see that all necessary entries have been made on the Form AA. Upon receipt of the Form AA, the New Orleans office will forward the warehouse receipts to a bank designated by the producer with directions to the bank to release the warehouse receipts to the producer upon payment of the loan value of the cotton plus applicable charges and interest. Banks may accept valid Forms 840 issued under the cotton export program in payment of all or part of the amount due on CCC loans on upland cotton. In all cases, the banks will be instructed to return the warehouse receipts to the New Orleans office if payment is not effected within 5 business days after the date the receipts are received by the bank or prior to the time at which the loan matures and CCC acquires the cotton, whichever is the earlier. Repayments will not be accepted after CCC acquires the cotton. All charges assessed by the bank to which the warehouse receipts are sent must be paid by the person redeeming the cotton.

producers tendering the cotton to the association and other loan provisions will be substantially the same as for loans to individual producers. Members desiring to obtain loans from their associations should contact their associations. Each association must meet the following requirements:

(a) Each association must be organized for the purpose of marketing cotton in accordance with the provisions of the Capper-Volstead Act.

(b) Each association shall be financially able to make loans to its producermembers and market their cotton in accordance with the provisions of the 1962 Cotton Cooperative Loan Agreement.

(c) Each association shall enter into marketing agreements with its members which give the association the authority to pledge the cotton to and otherwise handle it with CCC.

(d) Each association shall have a cotton marketing organization to sell its producer-members' cotton.

(e) Each association shall have a sales manager employed on an annual basis.

(f) The sales manager of each association must not have any connection whatever with any firm (other than the association) interested in buying and selling cotton.

§ 427.1328 Custodial offices.

All notes will remain in the custody of the New Orleans office until they are repaid or until the maturity date of the notes, whichever is earlier.

§ 427.1329 Schedule of premiums and discounts for upland cotton (basis 1-inch Middling) and loan rates for extra long staple cotton.

(a) Premiums and discounts for eligible qualities of 1962-crop American upland cotton (basis 1-inch Middling).