[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: 7CFR1427.1082]

[Page 511-512]
 
                          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.  1427.1082  Basic standards.

    Unless otherwise provided in this subpart, each warehouseman and 
each of the warehouses owned or operated by such warehouseman for which 
CCC approval is sought for the storage or handling of CCC-owned or -loan 
commodities shall meet the following standards:
    (a) The warehouseman shall:
    (1) Be an individual, partnership, corporation, association, or 
other legal entity engaged in the business of storing or handling for 
hire, or both, the applicable commodity. The warehouseman, if a 
corporation, shall be authorized by its charter to engage in such 
business,
    (2) Have a current and valid license for the kind of storage 
operation for which the warehouseman seeks approval if such a license is 
required by State or local laws or regulations,
    (3) Have a net worth which is the greater of $25,000 or the amount 
which results from multiplying the maximum storage capacity of the 
warehouse (the total number of bales of cotton or cotton linters which 
the warehouse can accommodate when stored in the customary manner) times 
ten (10) dollars per bale. The net worth need not exceed $250,000. If 
the calculated net worth exceeds $25,000, the warehouseman may satisfy 
any deficiency in net worth between the $25,000 minimum requirement and 
such calculated net worth by furnishing bond (or acceptable substitute 
security) meeting the requirements of Sec.  1427.1083,
    (4) Have available sufficient funds to meet ordinary operating 
expenses,
    (5) Have satisfactorily corrected, upon request by CCC, any 
deficiencies in the performance of any storage agreement with CCC,
    (6) Maintain accurate and complete inventory and operating records,
    (7) Use only card type warehouse receipts which are pre-numbered and 
pre-punched or such other document as CCC may prescribe,
    (8) Have available at the warehouse adequate and operable 
firefighting equipment for the type of warehouse and applicable stored 
commodity, and
    (9) Have a work force and equipment available to provide adequate 
storage and handling service.
    (b) The warehouseman, officials, or supervisory employees of the 
warehouseman in charge of the warehouse operation shall have the 
necessary experience, organization, technical qualifications, and skills 
in the warehousing business regarding the applicable commodities to 
enable them to provide proper storage and handling services.
    (c) Warehouseman, officials and each of the supervisory employees of 
the warehouseman in charge of the warehouse operation shall:
    (1) Have a satisfactory record of integrity, judgment, and 
performance, and
    (2) Be neither suspended nor debarred under applicable CCC 
suspension and debarment regulations.
    (d) The warehouse shall:
    (1) Be of sound construction, in good state of repair, and 
adequately

[[Page 512]]

equipped to receive, handle, store, preserve, and deliver the applicable 
commodity,
    (2) Be under the control of the contracting warehouseman at all 
times, and
    (3) Not be subject to greater than normal risk of fire, flood, or 
other hazards.

[44 FR 67085, Nov. 23, 1979, as amended by Amdt. 3, 50 FR 16455, Apr. 
26, 1985]