The crusher may continue to make tenders of cottonseed oil to CCC under this subpart after withdrawal, but cottonseed purchased by the crusher after withdrawal shall be excluded in computing the maximum quantity of oil CCC will purchase, and the maximum quantity of oil tendered after withdrawal shall not exceed the quantity of oil which the crusher can produce from the eligible cottonseed which he has on hand and has not crushed as of the date of withdrawal. A crusher who has withdrawn may reenter the program only upon approval of CCC.

§ 443.1864 crusher. (a) Price. A participating crusher must pay for all 1962 crop cottonseed purchased from participating ginners (as defined in 1962 crop Cottonseed Bulletin 2) not less than $48 per net ton basis grade (100) f.o.b. conveyance or carrier at the gin, with premiums and discounts for other grades equal to the same percentage of such price as the percentage by which the grade of cottonseed purchased exceeds or is less than the basis grade (100), except that the crusher shall use an average grade for the area in the case of purchases from gins located in any area designated by the Director, Oils and Peanut Division, ASCS, as an area in which the average grade for the area shall be used for this purpose. Cottonseed which is "below grade" or "off quality" as defined in the United States Official Standards for Grades of Cottonseed may be purchased at a price mutually agreeable to by the crusher and the participating ginner. The crusher must pay for all 1962 crop cottonseed purchased from producers not less than the purchase price to be paid to producers by participating ginners under 1962 Cottonseed Bulletin 2.

Purchases of cottonseed by

(b) Grades. Unless otherwise approved by the Executive Vice President, CCC, or his designee, the grades of cottonseed purchased by the crusher from participating ginners under this subpart shall be determined in accordance with the United States Official Standards for Grades of Cottonseed by chemical analysis of samples drawn from the cottonseed by federally-licensed cottonseed samplers, or such other persons as are approved by CCC, and forwarded to and analyzed by federally-licensed cottonseed chemists: Provided, That if cottonseed delivered to the crusher is destroyed

or damaged prior to sampling, the grade of such cottonseed shall be deemed to be the average grade of cottonseed in the area in which the cottonseed is acquired by the crusher, as determined by CCC: And provided, further, That the linter factor may be excluded in determining the grade if the crusher did not grade 1961 crop cottonseed in accordance with the U.S. Official Standards because of the linter factor: And provided, further, That in the case of purchases of cottonseed from ginners located in an area designated by the Director, Oils and Peanut Division, ASCS, as an area in which the average grade for the area shall be used, the average grade for the area shall be determined by CCC on the basis of the latest ASCS grade report for the area at the time of purchase based on samples drawn as stipulated by the Cotton Division of the Agricultural Marketing Service or such other method as the Executive Vice President, CCC may approve. The cost of sampling and analyzing cottonseed shall be borne by the crusher.

(c) Weight. Purchases of cottonseed from participating ginners under this subpart shall be based upon weight at the crusher's mill after deduction of the weight of all foreign material in excess of 1 percent. The cost of weighing shall be borne by the crusher.

(d) Receipts from gins owned by or under the same legal entity as the crusher. Where the crusher and a ginner are a single legal entity or where the crusher owns a gin and is directly responsible for its management, cottonseed received by the crusher from such gin shall not have been purchased from producers at less than the purchase price to be paid to producers by participating ginners under 1962 Cottonseed Bulletin 2 and such cottonseed shall be graded by the crusher in accordance with paragraph (b) of this section.

(e) Cooperative mills. If the crusher is a cooperative oil mill, and if the marketing agreements between the crusher and its members provide for advances, the crusher may advance a part of the applicable minimum purchase price determined in accordance with the provisions of this section at the time each lot of cottonseed is purchased and pay the balance after completion of crushing of 1962 crop cottonseed, but not later than December 31, 1963. Such payments may not be made, in whole or in part, by

issuance of revolving-fund certificates or by any other method of retention of amounts for capital purposes. § 443.1865 Tender of oil.

(a) Option to tender oil. Subject to the other provisions of this subpart, a participating crusher shall have the option to tender crude cottonseed oil to CCC: Provided, That, if crude oil is not normally produced at the mill, the crusher may tender once-refined cottonseed oil: And provided further, That if the crusher can, at the same location, produce either crude or once-refined cottonseed oil, he may either tender crude oil alone or make a twofold tender of crude oil and once-refined oil. Tenders shall be sent to the ASCS Commodity Office and may be by letter transmitting a completed 1962 Cottonseed Price Support Program Crusher Tender Form (CCC Form 913) or by wire. If a tender is made by wire, a completed Crusher Tender Form shall promptly be mailed to the ASCS Commodity Office in confirmation. Each tender must be signed by the crusher or an employee of the crusher having contractual authority to sign for the crusher. The tender shall state the price at which the crusher offers to sell the oil to CCC, whether the crusher is tendering basis prime crude or prime bleachable summer yellow cottonseed oil or making a twofold tender, the quantity tendered, and the planned delivery schedule meeting the requirements of § 443.1866. A supplementary explanation and justification must accompany any tender contemplating delivery after August 31, 1963.

(b) Time of tender. The crusher may tender cottonseed oil as of 10:00 a.m. Central Standard Time on each Tuesday (or the next working day if Tuesday is a holiday) at the ASCS Commodity Office. No tenders will be considered by CCC unless received at the ASCS Commodity Office by the specified time and day. The crusher shall not tender any oil which, if accepted by CCC, would cause the total quantity of oil tendered to and accepted by CCC and not yet delivered to CCC to exceed (1) the capacity of the mill to produce during a 45-day period of normal operations or (2) the quantity of oil which can be produced from the cottonseed which he has on hand and has not crushed as of the date of tender. No tender shall be made later than July 31, 1963.

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(a) Consideration of tender and acceptance or rejection. As soon as possible after the time for tender specified in § 443.1865, CCC will consider each tender of oil by a participating crusher under this subpart. If CCC determines that the price stated in the tender is acceptable and that the tender is otherwise acceptable, CCC will accept the tender. If the price stated in the tender is not acceptable, CCC may, at its option, make a counter offer. CCC will notify the crusher of acceptance or rejection of the crusher's tender and of any counter offer by wire filed by 4:30 p.m., c.s.t., on the tender date, if possible, but in any event not later than 4:30 p.m., c.s.t., on the next working day. If CCC makes a counter offer, the crusher's acceptance of the counter offer must be received by the ASCS Commodity Office within 48 hours after the filing of the wire containing the counter offer.

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(b) Price. The price stated in a tender by the crusher will be acceptable to CCC if CCC determines that such price is not in excess of that price necessary to enable crushers within the crusher's generally competitive area to recover, as a group average, the minimum price which participating crushers are quired to pay to ginners for cottonseed under this subpart plus such margin above such minimum price as CCC deems to be reasonable. In making such determination, due consideration will be given to current market prices for cottonseed products other than oil, average product outturns within said area, and other applicable factors. The price stated in any counter offer made by CCC will be determined by CCC upon the same basis. CCC will not be obligated to accept any tender at a price which is below the prevailing market price for oil in said area or to make any counter offers at such price.

(c) Contract of sale. Each tender by the crusher and acceptance by CCC, and each tender by the crusher, counter offer br CCC and acceptance by the crusher, shall constitute a separate contract for the sale of the cottonseed oil covered thereby in accordance with the terms and conditions of this subpart and in accordance with the applicable rules of the National Cottonseed Products Association (referred to in this subpart as "NCPA") in effect on the date of tender

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of such products except to the extent that such rules are inconsistent with this subpart and except as to periods specified in such rules for presentation of claims and the rules on arbitration.

(d) Quantity. The total quantity of oil which CCC will purchase from a participating crusher shall not exceed the amount of oil that can normally be produced by the crusher (based on 1961 crop outturn per ton of cottonseed) from the quantity of 1962 crop cottonseed produced in the United States and purchased by the crusher (1) from participating ginners during the period of said ginners' participation under 1962 Cottonseed Bulletin 2 and (2) from producers: Provided, That below grade or off quality cottonseed purchased by the crusher shall be excluded in computing the maximum quantity of oil which CCC will purchase: And provided further, That if the crusher's acceptance form is received subsequent to September 15, 1962, and is approved by CCC, cottonseed purchased by the crusher prior to the date of receipt of the acceptance form shall be excluded in computing the maximum amount of oil CCC will purchase.

(e) Amendment of tender. The ASCS Commodity Office and the crusher may, by mutual agreement, amend any contract of sale.

(f) Delivery. Each lot of cottonseed oil purchased by CCC shall be delivered by the crusher to CCC f.o.b. tank cars or tank trucks, made available without cost to the crusher at crusher's mill. The crusher shall deliver cottonseed oil crushed from 1962 crop cottonseed produced in the United States. Delivery will be in tank car lots in accordance with the delivery schedule specified in the tender or any modification thereof mutually agreed to by the crusher and the ASCS Commodity Office, and in accordance with shipping instructions issued by the ASCS Commodity Office. In any event, at least 10 percent of the quantity shall be delivered within 30 days after the date of sale, at least 30 percent within 60 days, and at least 60 percent within 90 days and delivery shall be completed not later than 180 days after the date of sale. No deliveries shall be made after August 31, 1963, except by special arrangement with the Director of the ASCS Commodity Office. Title to the cottonseed oil shall pass to CCC upon delivery. In delivering oil under any contract of sale, a variation of one-half of one percent above or below the total

quantity sold will be accepted as a good delivery as to weight.

(g) Grade. The cottonseed oil delivered by the crusher shall be basis prime crude cottonseed oil or prime bleachable summer yellow cottonseed oil (as specified in the tender), as defined in the rules of the NCPA: Provided, That if, on the basis of sampling and chemical analysis of cottonseed being crushed by the mill at the time for delivery, it is shown to the satisfaction of the ASCS Commodity Office that basis prime crude cottonseed oil or prime bleachable summer yellow oil cannot be produced, the crusher may deliver crude cottonseed oil of less than prime quality at the agreed sales price less discounts determined in accordance with the rules of the NCPA or once-refined cottonseed oil or prime summer yellow or summer yellow grade at a price mutually agreed upon by the crusher and CCC. The sales price of crude oil shall be adjusted for variance in quality in accordance with the rules of the NCPA.

(h) Provisional payment. When oil is delivered to CCC, the crusher may present to CCC for provisional payment an invoice, with shipping documents acceptable to CCC attached, for the value of the oil based on origin weights and the agreed sales price.

(i) Final settlement. Final settlement for oil delivered to CCC will be made upon the basis of the official analysis and the certified destination outturn weight of the oil, determined in accordance with the NCPA rules. The analysis and weighing will be arranged for by CCC at its expense.

§ 443.1867 Information release.

It is understood that CCC will make public names, quantities, locations and prices and such other information as it deems advisable with respect to all tenders under this subpart which have been accepted by CCC and transactions developing therefrom.

§ 443.1868 Movement of cottonseed oil.

CCC shall not be responsible for any loss or injury caused the crusher by failure of CCC to move cottonseed oil promptly, and the crusher shall not be responsible for any failure to deliver or delay in delivery of cottonseed oil, where such failure or delay on the part of CCC or the crusher is due to any cause without its fault or negligence including, but not restricted to, acts of God or the pub

lic enemy, storms, floods, conflagrations, strikes, blockades, riots, embargoes, or priority, allocations, service, or other orders or directives issued by the Government, difficulty in obtaining tank cars or tank trucks or any other cause beyond the control of CCC or the crusher. Notwithstanding the foregoing provisions, if CCC fails for any reason to issue shipping instructions in accordance with the delivery schedule specified in the tender (or any modification mutually agreed to by the ASCS Commodity Office and the crusher) the crusher may have an official analysis or quality determination made and shall not be responsible for any subsequent loss or deterioration in quality except for any loss, deterioration or damage due to the fault or negligence of the crusher.

Each crusher filing an acceptance form under this subpart shall keep accurate books, records, and accounts with respect to all purchases of cottonseed (including the name of seller, date of receipt, weight, and grade of each lot of cottonseed purchased) and all other transactions under this subpart for a period of at least three years from the last date any cottonseed oil is delivered by the crusher under this subpart, and shall furnish CCC such information and reports relating thereto as CCC may from time to time request, subject to the approval of the Bureau of the Budget pursuant to the Federal Reports Act of 1942. The crusher shall permit authorized employees of the United States Department of Agriculture, at any time during customary business hours, to inspect, examine, audit and make copies of such books, records, and accounts.

the crusher is owned or controlled by a parent company and, if so, shall state the name and principal office address of the parent company in the spaces provided on the tender form. The crusher shall also insert in the space provided the Employer's Identification Number (E.I. No.) (Federal Social Security Number used on Employee's Quarterly Federal Tax Return, U.S. Treasury Department Form 941) of the crusher and the parent company (if any). For the purposes of this subpart, a parent company is defined as one which either owns or controls the activities and basic business policies of the bidder. To own another company means the parent company must own at least a majority (more than 50 percent) of the voting rights in that company. To control another company, such ownership is not required; if another company is able to formulate, determine or veto basic business policy decisions of the bidder, such other company is considered the parent company of the bidder. This control may be exercised through the use of dominant minority voting rights, use of proxy voting, contractual arrangements, or otherwise.

§ 443.1872 Benefits and contingent fees.

No Member of or Delegate to the Congress of the United States or Resident Commissioner shall be admitted to any share or part of any contract resulting from tenders of cottonseed oil under this subpart, or to any benefit that may arise therefrom, but this provision shall not be construed to extend to such a contract if made with a corporation for its general benefit, nor to prohibit the purchase of cottonseed from such a person in his capacity as a producer. Each crusher tendering oil under this subpart warrants that no person or selling agency has been employed or retained to solicit or secure the contract upon an agreement of understanding for a commission, percentage, brokerage, or contingent fee except bona fide employees or bona fide established commercial or selling agencies maintained by the crusher for the purpose of securing business. For breech or violation of this warranty, CCC shall have the right to annul the contract without liability, or in its discretion to deduct from the contract price of the cottonseed oil the full amount of such commission, percentage, brokerage, or contingent fee.

If a tender by the crusher results in a contract for the sale of cottonseed oil having a total sales price of $100,000 or more, the contractor agrees in connection with the performance of work under such contract as follows:

(a) The contractor will not discriminate against any employee or applicant for employment because of race, creed, color, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rate of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause.

(b) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, or national origin.

(c) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency contracting officer, advising the said labor union or workers' representative of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

(d) The contractor will comply with all provisions of Executive Order No. 10925 of March 6, 1961, and of the rules, regulations, and relevant orders of the President's Committee on Equal Employment Opportunity created thereby.

(e) The contractor will furnish all information and reports required by Executive Order No. 10925 of March 6, 1961, and by the rules, regulations, and orders of the said Committee or pursuant thereto, and will permit access to his

books, records, and accounts by the contracting agency and the Committee for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

(f) In the event of the contractor's noncompliance with the nondiscrimination clauses of such contract or with any of the said rules, regulations, or orders, such contract may be cancelled in whole or in part and the contractor may be declared ineligible for further government contracts in accordance with procedures authorized in Executive Order No. 10925 of March 6, 1961, and such other sanctions may be imposed and remedies invoked as provided in the said Executive order or by rule, regulation, or order of the President's Committee on Equal Employment Opportunity, or as otherwise provided by law.

(g) The contractor will include the provisions of the foregoing paragraphs (a) through (f) of this section in every subcontract or purchase order unless exempted by rules, regulations, or orders of the President's Committee on Equal Employment Opportunity issued pursuant to section 303 of Executive Order No. 10925 of March 6, 1961, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the contracting agency may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, That in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the contracting agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States.