Grade Symbols: GM-Good Middling; SM-Strict Middling; MID-Middling; SLM-Strict Low Middling; LM-Low Middling; SGO-Strict Good Ordinary; GO-Good Ordinary.

1 Grade and staple codes. Staple below 1348 is coded 24 and is not eligible for loan. Any grade code starting with an 8 is "below grade" and is not eligible for loan.

50-021-71-16

§ 1427.1524

Subpart-Upland Cotton Price Support and Diversion Program Regulations, 1966 and Subsequent

Years

AUTHORITY: This subpart issued under secs. 4 and 5, 62 Stat. 1070, as amended, secs. 101, 103(d), 401, 63 Stat. 1051, as amended; 15 U.S.C. 714 b and c; 7 U.S.C. 1441, 1444(d), 1421.

SOURCE: The provisions of this subpart appear at 31 F.R. 6861, May 10, 1966, unless otherwise noted.

§ 1427.2101 Purpose.

The regulations in this subpart provide for price support and diversion payments earned under the upland cotton diversion and price support payment program regulations for 1966 and subsequent years (Part 722 of Chapter VII of this Title 7) to be made by actual or constructive delivery of negotiable certificates by Commodity Credit Corporation (hereinafter called "CCC") to producers and for the making of cash advances by CCC to producers who wish CCC's assistance in the marketing of

certificates earned by them. The regulations in this subpart also provide the methods by which CCC will redeem certificates and market certificates for which its assistance in marketing has been requested.

§ 1427.2102 Issuance of certificates.

The county committee will issue to each producer who is entitled to a payment under the upland cotton diversion and price support payment program regulations for 1966 and subsequent years a cotton payment-in-kind certificate (Form CCC-861) (hereinafter called "certificate") for the amount of such payment, except where the producer requests CCC's assistance in marketing his certificate at the time of applying for payment, subject to the following terms and conditions:

(a) Terms. Any certificate issued shall be subject to the provisions embodied in it and the provisions of this subpart.

(b) Payee. Each certificate will be issued only to the producer who is entitled to the payment or to his assignee

if he has assigned his right to payment in accordance with the upland cotton diversion and price support program regulations for 1966 and subsequent years.

(c) Face value. The face value of each certificate, which will be shown on the certificate, will be the amount determined to be payable to the payee.

(d) Date of issuance. The date of issuance shown on each certificate shall be the date the certificate is issued. Substi

tute certificates issued to replace original certificates never received by the payee shall bear a current date of issuance. Substitute certificates issued to replace other original certificates shall bear the same date of issuance as the certificate being replaced.

(e) Signature and countersignature. To be valid, each certificate must be signed and countersigned by authorized representatives of CCC.

(f) Transfer. The certificate may be transferred to any person or firm, in which case the certificate must be endorsed by the named payee and by the holder who presents it to CCC.

(g) Expiration date. The certificate shall expire three years after date of issuance and thereafter will not be redeemable by CCC.

§ 1427.2103 Redemption of certificates.

If

Certificates shall be redeemable in cotton upon terms and conditions established by the Executive Vice President, CCC, by submitting an application to the New Orleans ASCS Commodity Office, 120 Marais Street, New Orleans, La. the full amount of the face value of a certificate tendered by the payee or a subsequent holder for redemption in cotton is not fully redeemed in cotton, a balance certificate shall be issued to the certificate holder for the unused amount. If the amount is $3.00 or less, no balance certificate will is issued unless requested. The date of the balance certificate shall be the date of issuance of the original certificate. Balance certificates may be tendered to CCC for redemption in cotton in the same manner as the original certificates. Balance certificates issued to the payee shown on the original certificate may be surrendered by the payee to CCC for marketing.

§ 1427.2104 Cash advance.

A cash advance shall be made by the county committee on behalf of CCC to

any payee who requests CCC's assistance in marketing a certificate earned by him under this subpart. Only the payee shall have this option. If such request is made at the time the payee applies for payment, constructive delivery of the certificate to the payee will be made by making the cash advance and crediting a certificate pool with the value of the certificate earned by him. A payee who does not request CCC's assistance in marketing his certificate at such time may subsequently request CCC's assistance in marketing the certificate by delivering it to the county committee for marketing. Such certificate shall also be credited to a certificate pool. A cash advance to a payee shall be made in the form of a CCC sight draft for the face value of the certificate.

§ 1427.2105

Marketing of certificates.

All certificates for which payees have requested CCC's assistance in marketing and received cash advances shall be pooled by CCC and shall lose their identity as individual certificates. The amount of the certificate pool shall be the total of the value of the certificates of which CCC has made constructive delivery to the payees and the value of the certificates presented to the county offices by the payees for marketing by CCC. Such amount shall be equal to the amount of cash advances. CCC shall market the rights represented by pooled certificates upon terms and conditions established by the Executive Vice President, CCC, at such times and in such manner as CCC determines will best effectuate the purposes of the program. § 1427.2106

Administration.

This subpart will be administered by the Agricultural Stabilization and Conservation Service under the general direction and supervision of the Executive Vice President, CCC, and in the field will be carried out by Agricultural Stabilization and Conservation State committees and Agricultural Stabilization and Conservation county committees (herein called State and county committees), and the New Orleans ASCS Commodity Office. State and county offices, State and county committees, the New Orleans ASCS Commodity Office, and employees thereof do not have authority to modify or waive any the provisions of this subpart or any amendments or supplements to this subpart.

Subpart-Regulations Governing Redemption of Cotton Payment-inKind Certificates Earned Under Food and Agriculture Act of 1965 and Liquidation of Certificate Pools AUTHORITY: The provisions of this subpart issued under secs. 4 and 5, 62 Stat. 1070, as amended, sec. 402; 15 U.S.C. 714 b and c.

SOURCE: The provisions of this subpart appear at 31 F.R. 3284, Mar. 2, 1966, unless otherwise noted.

§ 1427.2250 General statement.

The regulations in this subpart provide the methods by which Commodity Credit Corporation (referred to in this subpart as "CCC") will (a) redeem payment-in-kind certificates (referred to in this subpart as "certificates") earned under section 402 of the Food and Agriculture Act of 1965 for cotton from its stocks and (b) market, from time to time, the rights represented by all such certificates for which the payees or subsequent holders have requested CCC's assistance in marketing and which have been pooled by CCC. CCC will issue, from time to time, a catalog of the cotton which may be acquired under this subpart. Cotton will be available under the terms and conditions contained in this subpart and in Announcement NO-C-31 as such other announcements as may be issued by CCC which provide for the acceptance of certificates or the marketing of rights. Copies of such announcements and other information desired will be furnished upon a written request to the New Orleans ASCS Commodity Office, 120 Marais Street, New Orleans, La., 70112 (referred to in this subpart as the "New Orleans office”).

nounced by CCC or as provided in § 1427.2255 for immediate use by the purchaser to obtain delivery of cotton from CCC in liquidation of such rights. Such rights may be acquired by submission of offers to the New Orleans office in accordance with the applicable announcement. § 1427.2253 Acceptance of offers.

Offers will be accepted at the highest price offered for the cotton but in no event less than the minimum acceptable price determined by CCC.

§ 1427.2254 Delivery of Cotton.

If an offer is accepted in whole or in part by the New Orleans office in accordance with the applicable announcement, it will make delivery of the cotton as to which it has accepted the offer by delivery of the warehouse receipts representing such cotton to the offeror (hereinafter referred to as "the purchaser") in accordance with the applicable announcement.

§ 1427.2255 Invoicing and settlement.

Cotton delivered under this subpart shall be provisionally invoiced and its settlement value determined as prescribed in the applicable announcement.

(a) If the provisional invoice value of the cotton delivered by CCC in redemption of certificates exceeds the face value of the certificates to be surrendered, certificate rights sufficient to cover such excess value shall be acquired by the purchaser from the certificate pool. Payment shall be made as provided in the applicable announcement for the certificate rights so acquired upon presentation of the invoice.

(b) If the provisional invoice value of the cotton delivered by CCC in redemption of certificates is smaller than the value of the certificates, CCC will issue a balance certificate for the unused amount. If the amount is $3 or less, no balance certificate will be issued unless requested. The date of the balance certificate shall be the date of issuance of the original certificate. Balance certificates may be tendered to CCC for redemption in cotton in the same manner as the original certificates. Balance certificates may be surrendered to CCC for marketing.

(c) If the value of the certificates surrendered is less than their face value, certificate rights sufficient to cover such difference in value shall be acquired by

the purchaser from the certificate pool and payment shall be made, as provided in the applicable announcement, by the purchaser to CCC for such certificate rights unless such difference has been accounted for in a balance certificate issued to the purchaser.

(d) If on final settlement the value of the cotton delivered by CCC in redemption of certificates or in liquidation of rights (less any cotton rejected) is redetermined as being in excess of the provisional invoice value of the cotton delivered by CCC, certificate rights sufficient to cover such excess value shall be acquired by the purchaser from the certificate pool. Payment shall be made in cash for the certificate rights so acquired. If the value of the cotton delivered by CCC (less any cotton rejected) is redetermined as being less than the provisional invoice value of the cotton delivered by CCC, such difference will be paid in cash to the person to whom the cotton was delivered and the pool shall be credited with an equal amount.

PART 1430-DAIRY PRODUCTS Subpart-Milk and Butterfat Price Support Program

§ 1430.282

Price support program for milk and butterfat.

(a) (1) The general levels of prices to producers for milk and butterfat will be supported from April 1, 1970, through March 31, 1971, at $4.66 per hundredweight for manufacturing milk and 71.5 cents per pound for butterfat.

(2) Price support for milk and butterfat will be through purchases by CCC of butter, nonfat dry milk, and cheddar cheese, offered subject to the terms and conditions of purchase announcements issued by the Agricultural Stabilization and Conservation Service, U.S. Department of Agriculture.

(3) Commodity Credit Corporation may, by special announcements, offer to purchase other dairy products to support the price of milk and butterfat.

(4) Purchase announcements setting forth terms and conditions of purchase may be obtained upon request from: U.S. Department of Agriculture, Agricultural Stabilization and Conservation Service, Livestock and Dairy Division, Washington, D.C, 20250.

or

1 For cheese which is offered on a "dry" basis (less than 37.8 percent moisture) the price per pound shall be as indicated in Form ASCS-150. Copies are available in offices listed in (a) (4).

2 If upon inspection the bags do not fully comply with specifications for sealed closures, the price paid will be subject to a discount of 0.25 (4) cent per pound of nonfat dry milk.

(2) Offers to sell butter at any location not specifically provided for in this section will be considered at the price set forth in this section for the designated market (New York, San Francisco, or Seattle) named by the Seller, less 80 percent of the lowest published domestic railroad carlot freight rate per pound, applicable to carlots of 60,000 pounds, gross weight, in effect when the offer is accepted from such location to such designated market. In the area consisting of Pennsylvania, New Jersey, New York, Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire, and Maine, CCC will purchase only butter produced in that area; butter produced in other areas is ineligible for offering to CCC in these States.

(c) The butter shall be U.S. Grade B or higher. The nonfat dry milk shall be U.S. Extra Grade, except moisture content shall not exceed 3.5 percent. The