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(6) Sales agencies will not offer any such cotton which is designated as Wasty or reduced in grade (other than cotton reduced not more than two grades for preparation). Sales agencies will arrange for the transfer of warehouse receipts covering such cotton to the New Orleans office.

4. Submitting offers.-Each offer for cotton must be submitted in duplicate on Offer to Purchase Choice (A) Cotton, Form CCC Cotton 81, which will be available at sales agencies and the New Orleans office. Each offer must identify the cotton, on an individual bale or lot basis, on which the offer is made and if on a lot basis, must be for all of the cotton in the lot, except under category 2(a)(2). Each offer must show in the space provided a firm offer in cents per pound for each lot of cotton in the warehouse or compress where located. Each offer must be submitted in a sealed envelope which shows on the outside tha an offer for Choice (A) cotton is enclosed and also shows the date, time, and place of opening of offers. The envelope must be addressed in the manner specified in the sales agency's Notice of Sale. Each offer must be signed by the offerer, by an employee of the offerer who has contractual authority, or by an authorized representative of the offerer. By submitting an offer, the person signing the offer represents and warrants that he has authority to sign the offer Offers received after the time specified for the opening of offers on a particular opening day will not be considered. Offers may not be withdrawn or amended after the date and time specified for the opening of offers.

5. Minimum sales prices.-The cotton will be sold at the highest price offered but in no event less than minimum prices determined as follows: For cotton of a quality and weight for which there is a Choice (B) support price under the 1960 Cotton Price Support Program, the minimum sales price will be 110 percent of the Choice (B) support price for cotton of such quality and weight at the location where the cotton is stored plus carrying charges (as specified below). For cotton of a quality and weight for which there is no Choice (B) support price (i.e., cotton designated as Wasty or reduced in grade for any reason except one or two grades for preparation and bales weighing from 275 through 349 pounds and from 626 through 700 pounds), the minimum sales price will be (a) 110 percent of an amount determined by subtracting 579 points from the Choice (A) support price for cotton of that particular quality and weight computed as provided in section 427.1161 of 1960 CCC Cotton Bulletin 2, plus (b) carrying charges. If a lot contains cotton of more than one quality as determined by the Board of Cotton Examiners, the minimum sales price for such lot of cotton will be an amount equal to the total amount that would be received for all cotton in the lot if it were sold on an individual bale basis at the minimum sales prices specified above. Minimum sales prices will be determined as of the date on which offers are accepted by the sales agency on the basis of the quality as signed to the cotton by a Board of Cotton Examiners on which the Choice (A) support price was determined. The carrying charges, expressed in points per pound, which will be added in determining minimum sales prices are as follows: August and September, none: October, 10; November, 30; December, 50; January 70: February, 90: March, 110; April, 130: May, 150: June, 170: July, 190.

6. Terms of sale. The cotton will be sold on the basis of warehouse receirt weights: Provided, That if the cotton is covered with bagging material uod under the Experimental Bale Cover Program of the National Cotton Council, the cotton will be sold on the basis of the warehouse receipt weights plus the number of pounds shown on the program bale tags as necessary to “adjust to normal gross weight." No reweights or reclassification or review of previors. classification will be permitted. CCC will assume storage charges through the last day of the calendar month in which the offer was accepted by deducting the amount of such charges from the purchaser's invoice. No charges fr compression will be assumed by CCC. If the bales are not identified as hear and light weight bales in the catalog, the sales agency will reject all offers a prices less than minimum prices determined in accordance with the first senterer of paragraph 5 hereof. In all cases where a sales agency includes heavy an light weight bales in its catalog with other bales without identifying sneh bales as heavy and light weight bales, the net amount of invoice will reflect an all wance of one cent per pound for bales weighing from 275 through 249 po is gross weight, and one-half cent per pound for bales weighing from 626 through 700 pounds, gross weight.

7. Acceptance of offers.-Each sales agency will consider the offers overal at each opening of bids covering cotton which it is offering for sale on bef of CCC and will accept or reject offers on behalf of CCC as soon as possche

after opening offers. Any or all offers may be rejected in whole or in part. If acceptable offers at identical prices are received on any lot of cotton, the cotton will be either (a) allocated in proportion to the quantity covered by each offer, or (b) awarded to the offerer whose offer was received first, whichever the sales agency has specified in its Notice of Sale as the basis of accepting offers. Successful offerers will be notified by the sales agency as soon as possible after acceptance of the offers. Sales agencies will prepare invoices as soon as possible after acceptance of offers.

8. Delivery and payment.-Delivery of and payment for cotton sold hereunder will be made by sight draft with invoice and warehouse receipts covering the cotton attached at the bank specified by the purchaser. Cotton export payment certificates earned under the Payment-In-Kind Cotton Export Program may be used in making such payment in part or in whole, provided that certificates in an amount greater than the invoice value will not be accepted.

9. Loss or damage to cotton sold.-CCC will deliver insured warehouse receipts to the purchaser. The warehouse receipts contain the obligation of the warehouseman to deliver the bales of cotton represented thereby in good condition. CCC shall not be liable to the purchaser for loss due to damage. Therefore, the purchaser must look to the warehouseman for any loss due to damage. No warranty is made as to condition, growth, or area of production.

10. Member or Delegate clause.-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 offers submitted hereunder 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. (S) RALPH H. RAPER, Acting Director, Cotton Division, Commodity Stabilization Service...

Approved:
(S) S. J. MEYERS,

Vice President, Commodity Credit Corporation.

UNITED STATES DEPARTMENT OF AGRICULTURE-COMMODITY STABILIZATION SERVICE, COMMODITY CREDIT CORPORATION

SALES ANNOUNCEMENT CN-A

(Revised) Amendment 1

JUNE 23, 1960.

SALES BY LOCAL SALES AGENCIES OF CHOICE (A) COTTON FOR UNRESTRICTED

USE

1. In order to provide an earlier time for opening offers, the first sentence of section 1 is amended by deleting the time "11:00" and inserting the time "10:00.” 2. In order to make section 2 consistent with section 3, as amended herein, the first sentence in section 2 is amended by deleting the word "one" and inserting the word "two."

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3. In order to provide that workmen will be available to assist prospective purchasers in all cases when cotton is sold on samples, the fourth sentence of the last paragraph of section 2 which begins with "Any sales agency is amended to read as follows: "Any sales agency that offers cotton for sale on samples will have adequate facilities for displaying the samples and will furnish workmen to locate and aid in showing samples representing lots of cotton of those qualities in which prospective buyers express an interest."

4. In order to provide, in the case of sales agencies more than 100 miles from any organized cotton exchange, a wider distribution of the sales agency's catalog and Notice of Sale, section 3 is amended as follows:

(a) The following sentence will be inserted in the first paragraph of such section immediately after the fifth sentence which ends *** 100 miles of such warehouse.": "If there is no cotton exchange within 100 miles, a copy of the catalog will be forwarded immediately after issuance to the cotton exchange nearest to the sales agency unless the sales agency receives approval of or direc

tion from the New Orleans office to send the catalog to some other cotton exchange."

(b) The following sentence will be inserted at the end of paragraph (b) (3) : "If there is no cotton exchange within 100 miles, a copy of the catalog and a copy of the Notice of Sale will be forwarded immediately after issuance to the cotrol exchange nearest to the sales agency unless the sales agency receives approval or direction from the New Orleans office to send such documents to some other cotton exchange."

5. In order to provide an additional area, paragraph (a) of section 3 is amended by deleting the word "four" in the first line and inserting the word "five" and by deleting the word "California" from area IV and by adding a new area Vat the end of the paragraph as follows: "Area V The State of California."

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This Agreement, made and entered into by Commodity Credit Corporation. an agency of the United States (hereinafter called "CCC”), and...--

WITNESSETH:

Address

Banking Institution (hereinafter called "the Bank”);

Whereas CCC will from time to time undertake programs to purchase Choice (A) upland cotton from producers and will authorize persons or fir which have entered into Cotton Purchasing Agency Agreements with CCC 1o purchase such cotton for CCC and to handle purchase documents representing such cotton purchased for CCC by other approved purchasing agencies;

Whereas the bank has entered into a Cotton Purchasing Agency Agreement with CCC;

Whereas CCC will conduct a program under which persons or firms which have entered into Cotton Purchasing Agency Agreements and Cotton Sales Agency Agreements with CCC will sell such cotton for CCC as local sales agencies:

Whereas CCC desires to utilize banks to act as custodians of warehouse re ceipts representing CCC cotton available for sale by local sales agencies and t perform certain other services relating to the sales activities of such sales agencies; and

Whereas the Bank desires to make its facilities available to CCC for sub purposes in connection with CCC cotton available for local sale by the persots or firms listed on Schedule A attached or by such other persons or firms as may with the approval of the Bank and CCC, designate the Bank as custodian (a. such persons and firms are hereinafter called "the Sales Agencies");

Now, therefore, in consideration of the premises and of the mutual covenants and agreements herein contained, the parties hereto agree as follows:

SECTION I. CUSTODIANSHIP

1. The responsibilities set forth in this section are in addition to the Barks responsibilities under the Cotton Purchasing Agency Agreement which the Baza has entered into with CCC and shall apply only to the handling of warebes receipts which the Sales Agencies have tendered to the Bank and designand to be held in custody for local sale.

2. The Bank shall verify that the warehouse receipt numbers are corre shown on all tag lists furnished by the Sales Agencies.

3. The Bank shall retain all such warehouse receipts in safe custody fr CCC until released as hereinafter provided.

4. The Bank shall forward to CCC a receipted copy of each verified tag list. In lieu of the warehouse receipts, with the purchase documents received from the Sales Agencies.

5. The Bank shall not release any warehouse receipts held in custody hereunder except as provided in paragraphs 6 and 9 of this Section I or upon written authorization from CCC and, notwithstanding any other provision of this agreement, shall not release any warehouse receipts if instructed by CCC not to release such warehouse receipts.

6. Upon receipt from a Sales Agency-of (a) the original and two copies of an invoice covering a sale of cotton, (b) three copies of a tag list of the cotton sold, and (c) a sight draft drawn on the purchaser and payable to CCC for the amount of the invoice, the Bank shall release the sight draft, the original of the invoice, a copy of the tag list, and the warehouse receipts shown on the tag list, as follows:

(a) If the purchaser has designated the Bank as the banking institution through which the draft is to be presented for payment, the Bank shall release the documents to the purchaser upon payment of the invoice amount. The Bank shall accept valid CCC Cotton Export Payments Certificates from the purchaser at their face value in full or partial payment of the invoice amount.

(b) If the purchaser has designated another banking institution through which the draft is to be presented for payment, the Bank shall forward the draft with documents attached to the bank specified by the purchaser for collection, in accordance with instructions issued by CCC.

(c) The Bank shall stamp the warehouse receipts in accordance with instructions issued by CCC before releasing them as provided in this paragraph.

7. All cash amounts received by the Bank for the account of CCC shall be de posited daily to CCC's account at any Federal Reserve Bank or Branch.

8. The Bank, in connection with warehouse receipts released pursuant to paragraph 6 of this Section I, shall forward to CCC a copy of the sales invoice(s), sight draft (s) and tag list (s), and where payment has been made to the Bank, all CCC Cotton Export Payment Certificates accepted.

9. The Bank shall deliver warehouse receipts held by it to CCC in accordance with instructions and tag lists received from the Sales Agencies or CCC.

10. The Bank shall maintain such files, records and controls and shall furnish such information and reports in connection with transactions relating to this agreement as may be requested by CCC. Such files and records shall, at all reasonable times, be open to audit and inspection by authorized representatives of CCC.

11. The Bank shall not be liable for any misstatements of fact or misrepresentations made in any of the documents tendered by the Sales Agencies: Provided, That the Bank shall not accept for custody any documents with respect to which it has actual knowledge that there is some defect or irregularity in connection with the cotton covered by the documents or that such cotton is otherwise ineligible under the program: And provided further, That the Bank shall be responsible for the exercise of reasonable care in the performance of its functions hereunder.

SECTION II-RECEIPT AND OPENING OF SEALED OFFERS

1. The Bank shall perform the following services for all of the Sales Agencies which have entered into a Cotton Sales Agency Agreement (Unlimited) with CCC:

(a) receive sealed offers to purchase cotton represented by warehouse receipts held by the Bank and available for sale by such Sales Agencies for the account of CCC;

(b) affix on the envelope the date and time such offers were received by the Bank at the place in the Bank designated in the Notice of Sale;

(c) retain custody of the sealed offers until the time of opening designated in the Notice of Sale;

(d) open all offers received at the time designated in the Notice of Sale for such opening;

(e) prepare a listing of the offers showing the name of each offerer and the date and time each offer was received by the Bank.

2. The original of each offer, the envelope in which the offer was received showing the date and time of receipt, and the original listing for each opening shall be forwarded to CCC immediately after each opening.

3. A copy of each offer and a copy of the listing for each opening shall be furnished to the Sales Agency which offered the cotton for sale.

4. The Bank with respect to each opening shall certify on the original listing that it represents all offers received by the Bank prior to the time designated for opening offers, that the offers were received on the date(s) and at the time(s) indicated, and that they were opened by the Bank at the designated time

SECTION III-COMPENSATION

1. For services rendered by the Bank in accordance with Section I hereof, CCC shall pay to the Bank with respect to cotton of each crop year a fee for such services computed in accordance with the following schedule:

a. for the first 5,000 warehouse receipts received for custody-20¢ per ware house receipt,

b. for the next 5,000 warehouse receipts received for custody-15¢ per ware house receipt,

c. for all warehouse receipts received for custody in excess of 10,000–10r per warehouse receipt.

The fees earned hereunder will be paid monthly by CCC.

2. Fees or reimbursement for the services rendered by the Bank in accordance with Section II hereof, shall be obtained from the Sales Agencies.

3. The compensation paid to the Bank in accordance with this Section III shall be in full reimbursement for the services performed and expenses incurred by the Bank hereunder.

SECTION IV-MISCELLANEOUS

1. The services to be performed by the Bank hereunder shall be exercised in accordance with the provisions hereof and such instructions as CCC may issue from time to time.

2. Any instruction, direction, request, consent, authorization, approval, de mand, or notice required or given under this agreement must be in writing.

3. No Member of or Delegate to Congress, or Resident Commissioner, shall be admitted to any share or part of this agreement or to any benefit that may arise therefrom, but this provision shall not be construed to extend to such persons in their capacity as cotton producers nor to this agreement if made with a corporation for its general benefit.

4. The Bank warrants that it has not employed any person to solicit or secure this contract upon any agreement for a commission, percentage, brokerage, or contingent fee, and that no such consideration or payment has been or will be made. Breach of this warranty shall give CCC the right to annul the contract or at its discretion, to deduct from the contract consideration the amount of such commission, percentage, brokerage, or contingent fees. This warranty shall not apply to commissions payable by the Bank upon contracts secured or made through bona fide employees or bona fide established commercial or selling agercies utilized by the Bank for the purpose of securing business.

5. This agreement may be amended at any time upon mutual agreement of the parties hereto.

6. This agreement may be terminated at any time by either party hereto ups not less than ten days' notice to the other party. Such termination shall pet affect the obligations of the parties hereto with respect to warehouse receipts received by the Bank prior to the effective date of such termination.

IN WITNESS WHEREOF, the parties hereto have executed this agreement, in duplicate, as of the 19...

day of

COMMODITY CREDIT CORPORATION,

By
Title

Contracting Officer.

Bank

By

Title

Attest:

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