[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1427.1081]

[Page 510-511]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1427_COTTON--Table of Contents
 
  Subpart E_Standards for Approval of Warehouses for Cotton and Cotton 
                                 Linters
 
Sec.  1427.1081  General statement and administration.

    Authority: Secs. 4 and 5, 62 Stat. 1070, as amended, 1072, as 
amended (15 U.S.C. 714 b and c).

    Source: 44 FR 67085, Nov. 23, 1979, unless otherwise noted.


    (a) This subpart prescribes the requirements which must be met and 
the procedures which must be followed by a warehouseman in the United 
States or Puerto Rico who desires the approval by the Commodity Credit 
Corporation (hereinafter referred to as ``CCC'') of warehouse(s) for the 
storage and handling of cotton and cotton linters, under a Cotton 
Storage Agreement, which are owned by CCC or held by CCC as security for 
price support loans. This subpart is not applicable to cotton or cotton 
linters purchased in storage for prompt shipment or to handling 
operations of a temporary nature.
    (b) Copies of the CCC storage agreement and forms required for 
obtaining approval under this subpart may be obtained from the Kansas 
City Commodity Office, U.S. Department of Agriculture, P.O. Box 205, 
Kansas City, Missouri 64141 (hereinafter referred to as the ``KCCO'').
    (c) A warehouse must be approved by the KCCO and a storage agreement 
must be in effect between CCC and the warehouseman before CCC will use 
such warehouse. The approval of a warehouse or the entering into of a 
storage agreement does not constitute a commitment that CCC will use the 
warehouse, and no official or employee of the U.S. Department of 
Agriculture is authorized to make any such commitment.
    (d) A warehouseman, when applying for approval under this subpart 
shall submit to CCC at KCCO:
    (1) A completed Form CCC-49, ``Application for Approval of Warehouse 
for Storage of Cotton and/or Cotton Linters,''
    (2) A current financial statement on Form WA-51, ``Financial 
Statement'', supported by such supplemental schedules as CCC may 
request. Financial statements may be submitted on forms other than Form 
WA-51 with approval of the Director, KCCO, or the Director's designee. 
Financial statements shall show the financial condition of the 
warehouseman as of a date no earlier than ninety (90) days prior to the

[[Page 511]]

date of the warehouseman's application, or such other date as CCC may 
prescribe. Additional financial statements shall be furnished annually 
and at such other times as CCC may require. CCC also may require that 
financial statements prepared by the warehouseman or by a public 
accountant be examined by an independent certified public accountant in 
accordance with generally accepted auditing standards. Only one 
financial statement is required for a chain of warehouses owned or 
operated by a single business entity. If approved by the Director, KCCO, 
or the Director's designee, the financial statement of a parent company, 
which includes the financial position of a wholly-owned subsidiary, may 
be used to meet the CCC standards for approval for the wholly-owned 
subsidiary.
    (3) Evidence that the warehouseman is licensed by the appropriate 
licensing authority as required under Sec.  1427.1082(a)(2) and such 
other documents or information as CCC may require,
    (4) For warehouseman not operating under the U.S. Warehouse Act, a 
sample copy of the warehouseman's receipts and bale tags, and
    (5) Evidence of applicable fire insurance rates.

[44 FR 67085, Nov. 23, 1979, as amended by Amdt. 3, 50 FR 16454, Apr. 
26, 1985]