UNITED STATES DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

CCC-823

Cotton Storage Agreement (CSA)
Cotton Storage Agreement

Table of Contents

Page

PART 1 - DEFINITION OF TERMS ........................................................1

PART 2 - GENERAL TERMS.............................................................4

A. Scope...............................................................................................................................................................................4

B. Documents Incorporated by Reference ...........................................................................................................................3 

C. Terms of the Agreement to Prevail ................................................................................................................................. 3 

PART 3 - WAREHOUSE OPERATOR'S RESPONSIBILITIES .....................................3

A. Storage Requirements .....................................................................................................................................................3 

B. Sampling and Trimming..................................................................................................................................................4 

C. Shipping ..........................................................................................................................................................................4 

D. Receiving ........................................................................................................................................................................4 

E. Notices to CCC ...............................................................................................................................................................5 

F. Authorizations Regarding Warehouse Receipts..............................................................................................................5 

G. Inducements and Redemptions........................................................................................................................................5 

H. Insurance .........................................................................................................................................................................5 

I. Notices of Damage to CCC-interest Cotton ....................................................................................................................6 

J. Care of and Liability for Damaged CCC-interest Cotton................................................................................................6 

K. Records............................................................................................................................................................................6 

L. Examinations...................................................................................................................................................................7 

M. Reports............................................................................................................................................................................7 

N. Financial Statements .......................................................................................................................................................7 

O. Changes in Ownership or Operation ...............................................................................................................................7 

P. Duplicate or Replacement Warehouse Receipts..............................................................................................................7 

Q. Payment of Fees..............................................................................................................................................................7 

R. Security Plan ...................................................................................................................................................................8 

S. Delivery, Service and Shipping Standard........................................................................................................................8 

PART 4 - CCC'S RESPONSIBILITIES ......................................................9

A. CCC Not Obligated to Store Cotton................................................................................................................................9 

B. Notices to Warehouse Operator ......................................................................................................................................9 

C. Notices to Warehouse Operators Regarding Shipment ...................................................................................................9 

D. Warehouse Charges.........................................................................................................................................................9 

PART 5 - REMOVAL, TERMINATION, EFFECTIVE DATE ..................................... 11

A. Removal from the CCC List of Approved Warehouses................................................................................................11 

B. Termination...................................................................................................................................................................11

C. Effective Date................................................................................................................................................................12 
CCC-823 U.S. DEPARTMENT OF AGRICULTURE

(05-23-2019) Commodity Credit Corporation

Warehouse Code Master Code

COTTON STORAGE AGREEMENT

This Cotton Storage Agreement (Agreement or CSA) is a contract for the storage and handling of CCC-interest Cotton. This 

Agreement is entered into between the Commodity Credit Corporation (CCC) and (1) ,

with principal place of business at (2) ,

(the warehouse operator). This Agreement covers warehouse facilities located at (3) and

commonly known as (4) (warehouse). 

PART 1 - DEFINITION OF TERMS

Additional Surcharge – An additional surcharge is 1) a charge that is not clearly defined in the warehouse tariff; 2) 

a charge that, relative to other non CCC-interest cotton, would discriminate against cotton that was CCC-interest 

cotton; or 3) a charge made in addition to the published storage charge and associated with the length of time the 

bale has remained in storage.

Annual Renewal Date - The date the contract renews. Currently July 1 of each year for certain warehouses in the 

State of Texas and September 1 for all other warehouses.

Approved Space - Warehouse space approved by a CCC Contracting Officer for the storage of cotton.

 Business Day - A calendar day excluding Saturdays, Sundays, or federal holidays.

CCC - A wholly-owned government corporation within the U.S. Department of Agriculture.

CCC-interest cotton - Cotton, the title in which is vested in CCC, or cotton which is placed under price support 

loan to CCC.

CCC List of Approved Warehouses - A list of cotton warehouses approved under the CSA. These warehouses are 

approved to store CCC-interest cotton. Warehouses that have been removed from the CCC List of Approved 

Warehouses may not accept cotton to be pledged as collateral for a price support loan, nor will additional 

CCC-owned cotton be placed in the warehouse until the warehouse is reinstated to the List.

 CCC-loan cotton - Cotton which was placed in storage by someone other than CCC and pledged to CCC as security 

for a CCC price support loan.

CCC-owned cotton - Cotton in which title is vested in CCC.

Day or Days - Calendar day or days.

Delivery or Outhandling - The process of removing the cotton from storage including picking out bales by tag 

number; removing cotton from the warehouse; loading the cotton according to custom into railroad cars, trucks, or 

other conveyances for shipment; and other customary delivery services performed by warehouse operators.

 

Staging Shipping Order - Shipping order sent by the shipper to a warehouse with an associated tag list, holdership 

of receipts is not transferred to the warehouse. This order is referred to as a batch 31 type file per EWR Inc.’s Cotton 

Client Interface Manual. This order must be replaced by a Shipping Order (batch 21 type file) with matching tag list 

before the time of shipment.

Electronic Warehouse Receipt (EWR) - A warehouse receipt that is authorized by the Director of The Warehouse 

and Commodity Management Division, Agricultural Marketing Service, to be issued or transmitted under the U.S. 

Warehouse Act in the form of an electronic document.

Facility - All buildings or other protective structures used or able to be used by the warehouse operator to store 

cotton. Under certain circumstances an approved facility may include outside “yard” storage, as determined by 

CCC.
CCC-823 (05-23-2019) Page 2 of 12 

Loading Order - Instructions issued by CCC to the warehouse operator authorizing and directing disposition of 

CCC-interest cotton. Such instructions may include, but are not limited to, the description of the cotton, method of 

delivery, storage stop date, and warehouse receipt number.

Locator ID- Electronic field within the provider system used to indicate the exact location of a bale within a 

warehouse.

 Nonreconcentrated CCC-owned cotton - Cotton in storage at the warehouse which was placed in storage by a 

third party but currently owned by CCC (including baled sample loose, pickings, or sweepings).

 Nontransferred CCC-loan cotton – Cotton in storage at the warehouse which was placed in the warehouse by a 

third party and pledged to CCC as security for a marketing assistance loan.

Provider - An individual or entity that maintains electronic warehouse receipts in a central filing system and has a 

Provider Agreement with the Warehouse and Commodity Management Division, Agricultural Marketing Service. 

Receiving - The process of receiving cotton for storage including unloading the cotton from conveyance; sampling 

the cotton on arrival at the warehouse, if requested; tagging the bales of cotton; weighing the cotton; issuing 

warehouse receipts; placing the cotton in storage; and other customary receiving services performed by warehouse 

operators.

Receiving Documents - Documents provided to CCC by a warehouse operator upon receiving CCC-interest cotton. 

These documents may include Exception Reports or Notices of Damaged or Short Bales, Reconditioning Reports, 

Invoices for Cotton Warehouse Charges, Shipping and Receiving Lists, Weight Sheets, and Warehouse Receipts.

Reconcentrated CCC-loan cotton - Cotton in storage at the warehouse which was placed in storage by CCC after 

being pledged to CCC as security for a price support loan.

Reconcentrated CCC-owned cotton - Cotton in storage at the warehouse which was placed in storage by CCC and 

which is owned by CCC (including baled sample loose, pickings, or sweepings).

Schedule of Rates - The CCC form, excluding Part C, submitted by the warehouse operator and approved by the 

CCC contracting officer containing the rates for services that will be paid by CCC under this Agreement.

Shipping Order- Order sent by the shipper to a warehouse with a valid schedule date and associated tag list making 

the warehouse the holder of the EWR receipts. This order is referred to as a batch 21 type file per EWR Inc.’s 

Cotton Client Interface Manual.

 

Shipping Order Update- Order used by shippers and warehouses to exchange request load dates and schedule dates 

for a shipping order. Before a Shipping Order Update can be sent, the shipper must send a batch 21 (shipping order) 

or 31 (staging shipping order). This order is referred to as a batch 23 type file per EWR Inc.’s Cotton Client 

Interface Manual.

Transferred CCC-loan cotton – CCC-loan cotton which was originally pledged for a marketing assistance loan at 

another CCC-approved warehouse, and was subsequently moved to a second CCC-approved

warehouse with permission from CCC.

Warehouse Operator - Person who owns or manages a cotton warehouse.

Yard Storage – Cotton stored outside of approved space, but on property legally controlled by the warehouse 

operator. Yard storage will be approved only in storage deficit areas, as determined by CCC. Written concurrence 

from any applicable licensing authority for the use of yard storage must be submitted to CCC prior to approval.

PART 2 - GENERAL TERMS

A. Scope 

(1) Unless otherwise specified in this Agreement, the provisions of this Agreement – 

(a) the provisions of this Agreement shall apply to all warehouse operators storing, or intending to store, 

 CCC-interest cotton that have entered into this Agreement; and 
CCC-823 (05-23-2019) Page 3 of 12 

(b) the rates specified in the Schedule of Rates shall apply to all CCC-interest cotton. 

(2) With respect to CCC-interest cotton, the title of which has been transferred by CCC (or its authorized sales 

agent) to a transferee, a warehouse operator shall not apply any additional surcharge until the transferee has 

subsequently transferred such cotton.

B. Documents Incorporated by Reference 

 Incorporated by reference into this Agreement are the following documents:

 (1) Application for Approval of Warehouse for Storage of Cotton and/or Cotton Linters;

 (2) Schedule of Rates; 

 (3) Supplement to the Uniform Storage Agreements, as amended; and

 (4) 7 C.F.R. parts 1403, 1407, 1423, and 1427. 

C. Terms of the Agreement to Prevail 

Applicable federal laws, regulations of the United States, and the terms of this Agreement prevail over the written or 

printed terms of warehouse receipts representing CCC-interest cotton, the warehouse operator's tariff or posted rates, 

and state or local laws or regulations to the extent that such laws or regulations are inconsistent with the provisions 

of this Agreement or the laws and regulations of the United States. The provisions of any state law, local law, 

regulation, or tariff which are not consistent with or imposes additional restrictions on the provisions of federal law 

and regulation or this Agreement are of no effect to the extent of such inconsistency.

PART 3 - WAREHOUSE OPERATOR'S RESPONSIBILITIES

A. Storage Requirements 

(1) The warehouse operator shall:

 (a) Keep CCC-interest cotton stored within a facility approved by CCC;

 (b) Maintain the warehouse in sound physical condition; 

 (c) Not concentrate CCC-owned cotton into facilities which have the highest fire insurance rates; 

 (d) Unless otherwise provided in this Agreement, be responsible for all losses associated with CCC-owned 

cotton stored by the warehouse operator unless the warehouse operator shows that such loss was caused by 

forces not within the control of and without the fault or negligence of the warehouse operator; 

 (e) Maintain CCC-interest cotton at all times in the warehouse named on the warehouse receipts; except to the 

extent that CCC agrees, in writing, that such cotton may be held instore at other locations; 

 (f) Weigh all CCC-interest cotton as required by Cotton Loan Regulations (7 C.F.R. part 1427), however, the 

use of gin weights is acceptable if the use of gin weights is permitted by the warehouse operator's 

applicable licensing authority. The use of gin weights does not relieve the warehouse operator of the 

responsibility for the accuracy of the weights shown on warehouse receipts; 

 (g) Keep CCC-interest cotton stored in such a manner that is consistent with fire standards and insurance 

requirements; 

(h) Populate the locator ID on all electronic warehouse receipts; and

 

(i) For other than Federally licensed warehouses, maintain a current and valid license for the kind of storage

 operation for which the warehouse operator seeks approval, if such license is required by State or local

 regulations or law. 

 
CCC-823 (05-23-2019) Page 4 of 12 

(2) In addition to the above, for warehouses located in storage deficit areas approved for yard storage, the warehouse 

 operator shall:

 (a) Notify CCC prior to placing CCC-loan cotton in yard storage; 

 (b) Provide written consent from any applicable licensing authority clearly describing the alternative storage methods 

 approved by such licensing authority;

 (c) Mark all warehouse receipts with dates that bales are moved in to and out of yard storage;

 (d) Provide written evidence of all-risk insurance;

 (e) Provide bale location files for all CCC-loan cotton in a format determined by CCC; and

 (f) Comply with special handling requirements as directed by CCC. 

B. Sampling and Trimming 

The warehouse operator:

(1) Shall not sample or permit anyone to sample CCC-interest cotton unless so authorized in writing by CCC or by 

the owner of CCC-loan cotton; and

(2) When sampling is authorized, shall remove from any bale only that cotton which is necessary to secure 

representative samples, properly trim the sample holes, and otherwise maintain the cotton.

C. Shipping 

(1) Each bale of CCC-owned cotton must be covered in material meeting specifications adopted and published by 

the Joint Cotton Industry Bale Packaging Committee (JCIBPC) prior to shipment.

(2) If requested by CCC, the warehouse operator shall furnish shipping documents in such format and number as 

CCC may specify for any CCC-interest cotton ordered shipped by CCC. Bills of lading covering shipments of 

CCC-interest cotton for the account of or in the name of CCC shall not be used by the warehouse operator or 

surrendered to others for use in support of transit claims, concentration claims, or for any other purpose unless 

approved by CCC and until such bills of lading have been properly endorsed by CCC.

(3) The warehouse operator, if shipping CCC-interest cotton, shall notify the receiving warehouse operator prior to 

releasing the shipment to the carrier.

(4) The warehouse operator must promptly deliver CCC-interest cotton in accordance with loading orders issued by 

CCC. The loadout must be completed by the shipment completion date shown on the loading order, unless other 

arrangements satisfactory to CCC are made. If applicable, all loading orders will include the storage stop date 

after which CCC will no longer be obligated to pay storage on such cotton.

(5) CCC will not pay delivery or receiving charges as defined in Part 4(D) to either the shipping or receiving 

warehouse operator when CCC-loan cotton is transferred using the CCC-699C Cotton Transfer Agreement.

(6) If the warehouse operator fails to loadout CCC-interest cotton in accordance with loading orders and the terms 

of this Agreement or other terms of this Agreement, the warehouse operator agrees to allow CCC to remove the 

CCC-interest cotton ordered out. Any costs incurred by CCC to recover such cotton will be paid by the 

warehouse operator.

D. Receiving 

The warehouse operator upon receipt of CCC-interest cotton must furnish CCC receiving documents in such format 

and number as CCC may require.
CCC-823 (05-23-2019) Page 5 of 12

E. Notices to CCC 

With respect to CCC-interest cotton, the warehouse operator will promptly notify CCC, in writing, if the bale:

(1) Bears any visible evidence of being false-packed, water-packed, mixed-packed, reginned, or repacked;

(2) Has been compressed to high density or to any density not approved by CCC;

(3) Has been reconditioned, but the weights on the warehouse receipt have not been adjusted to reflect the weights 

after reconditioning;

(4) Is not clean and in good condition;

(5) Does not bear the origin gin bale number; or

(6) Is packaged in material which does not meet the specifications adopted by the Joint Cotton Industry Bale 

Packaging Committee (JCIBPC) for bale coverings and bale ties or in material which is not identified and 

approved by JCIBPC as experimental packaging material.

F. Authorizations Regarding Warehouse Receipts 

The warehouse operator shall furnish CCC written authorization to stamp the applicable warehouse receipts with 

appropriate legends when submitting to CCC any notice required under section E. If electronic warehouse receipts 

are used, CCC may add the appropriate legends to the additional information records associated with the warehouse 

receipts.

G. Inducements and Redemptions 

The warehouse operator or the warehouse operator's agent shall not take any action which:

(1) Would cause cotton to be pledged as collateral for a CCC price support loan; or

(2) Would hamper redemption of loan cotton.

H. Insurance 

(1) The warehouse operator shall insure and at all times keep insured all CCC-loan cotton against loss or damage 

by fire for its full market value as determined by the United States Department of Agriculture (USDA) at the 

time and place of loss under a policy or policies providing coverage equivalent to that afforded under the

standard fire policy of the state in which such cotton is stored. Such insurance shall include damage to such 

cotton by water from the warehouse sprinkler system when such damage results from fire in the same 

warehouse in which such cotton is stored. For insurance purposes, full market value of compressed cotton shall 

be the market value as determined by USDA. Without in any way limiting the warehouse operator's liability 

under this section, the warehouse operator shall carry a standard form of insurance policy approved for cotton 

warehouse operators in the state in which the warehouse is located with a deductible provision on baled cotton 

not to exceed $10,000 for each loss to baled cotton in such warehouse.

(2) In addition to the above provisions, any CCC-interest cotton approved for yard storage must be insured against 

all risks including (but not limited to) flood and country damage. Proof of such all-risk insurance, showing CCC 

as the loss payee, shall be required prior to approval for yard storage. 

 (3) Notwithstanding any provision to the contrary contained in the warehouse receipts, the warehouse operator shall 

not be obligated to insure CCC-owned cotton.

(4) If the warehouse operator insures CCC-interest cotton against hazards or for a period of time for which such 

insurance is not required by the terms of this Agreement, such insurance will be at the warehouse operator's 

expense and such insurance shall inure to the benefit of CCC.
CCC-823 (05-23-2019) Page 6 of 12

I. Notices of Damage to CCC-interest Cotton 

The warehouse operator shall, no later than the next business day, notify CCC of any damage to CCC-interest cotton

while it is in the warehouse operator's custody. If the warehouse operator is uncertain as to whether cotton which is 

damaged is CCC-interest cotton, the warehouse operator shall promptly notify CCC that it may have an interest in 

cotton which has been damaged. CCC may require transmission of electronic bale listings in a format determined by 

CCC.

J. Care of and Liability for Damaged CCC-interest Cotton 

The warehouse operator shall promptly recondition all CCC-interest cotton damaged from causes other than nuclear 

incident, nuclear reaction, nuclear radiation, radioactive contamination, flood, fire, strikes, riot, war, public enemy, 

or act of God without cost to CCC and shall pay CCC for all losses sustained with respect to CCC-owned cotton, 

based upon the market value of the cotton as determined by USDA at the time and place of loss, unless the 

warehouse operator establishes to the satisfaction of CCC that such damage was not caused by the warehouse 

operator's failure to exercise due care. 

K. Records 

(1) The warehouse operator must maintain current and complete records at all times with respect to all cotton 

stored, handled, or under the control of the warehouse operator. Access to these records must be available onsite, unless otherwise agreed to by CCC, in writing. Specifically, the warehouse operator must maintain records 

which show:

(a) All bales for which warehouse receipts are outstanding;

(b) Location of each bale in store provided by an electronic open bale location file in a format determined by 

CCC; 

(c) Disposition of all bales shipped;

(d) Accurate status of all service and shipping orders;

(i) Respond to shipper generated Shipping Order or Staging Shipping Order containing a valid requested 

shipping date with a Shipping Order Update no later than two business days, in the interest of 

providing a documented audit trail. Further communication between the merchant and the warehouse 

will be documented through Shipping Order Updates. 

(e) All weights and reweights established by the warehouse operator;

(f) All reconditioning including weight before and after reconditioning of all CCC-interest cotton, and weight 

of pickings removed; and

(g) Identity of CCC-interest cotton or other than CCC-interest cotton.

(2) If electronic warehouse receipts are used, such receipts must be filed with a provider having a Provider 

Agreement with the Warehouse and Commodity Management Division, Agricultural Marketing. 

(3) The warehouse operator must retain the warehouse receipts and disposition documents related to each bale of 

CCC-interest cotton and the supporting documents for a period of not less than 6 years, unless otherwise 

authorized in writing by CCC.

(4) The warehouse operator must allow CCC access to any records requested by CCC regarding the warehouse, its 

financial condition, or the operation of the warehouse.
CCC-823 (05-23-2019) Page 7 of 12

L. Examinations 

(1) At any time during business hours, the warehouse operator must permit CCC to examine the warehouse and its 

equipment; inspect and take inventories of CCC-interest cotton stored therein; and examine the books, records, 

papers, and accounts relating to the warehouse and to all cotton stored therein. The warehouse operator must 

furnish whatever assistance is necessary to enable CCC to perform such inspection or examination and shall 

provide and maintain in proper condition such equipment and facilities as deemed necessary by CCC to avoid 

risk and hazard to authorized representatives of CCC. Examinations and inspections made by CCC or by a 

Federal, state, or other recognized supervisory body will, however, in no way relieve the warehouse operator of 

the responsibilities under the terms of this Agreement or obligation as a public warehouse under the law. The 

examination may be stopped, and the warehouse will be removed from the Approved List if the warehouse or 

its equipment is not safe to conduct or continue the examination of the warehouse.

(2) Warehouse examinations under this Agreement are only intended for the use of CCC and are not for the 

protection of any other party, including the warehouse operator. CCC does not guarantee the results of its 

examinations to the warehouse operator or any other party.

M. Reports 

The warehouse operator must:

 

(1) Furnish CCC reports with respect to receiving, storing, conditioning, and delivery of CCC-interest cotton and 

with respect to the warehouse operator's financial condition, cotton fire insurance rates, total inventory of 

CCC-interest cotton, and outstanding storage obligations as CCC may request.

(2) Immediately notify CCC in writing of any change in the capacity of the warehouse facilities, or whenever the 

warehouse operator is unable to accomplish loadout of CCC-interest cotton in accordance with loading order 

instructions issued by CCC.

N. Financial Statements 

Financial statements must be submitted to the Warehouse and Commodity Management Division, Beacon Facility, 

Mail Stop 9148 P.O. Box 419205, Kansas City, Missouri 64141-6205, within 90 calendar days after the close of the 

warehouse operator's fiscal year. 

O. Changes in Ownership or Operation 

The warehouse operator must promptly notify CCC in writing of any change in ownership or operation of the 

warehouse. This Agreement will not automatically continue with change of ownership or operator.

P. Duplicate or Replacement Warehouse Receipts 

The warehouse operator must issue duplicate or replacement warehouse receipts as requested by CCC upon receipt 

of an indemnity agreement and representation by CCC that the original warehouse receipts have been lost or 

destroyed.

Q. Payment of Fees 

(1) Application fees for each new warehouse code or successor agreement are eighty-five dollars ($85) per 

thousand bales of approved capacity, with a minimum of one hundred seventy dollars ($170), and a maximum 

of seventeen hundred dollars ($1,700).

(2) If a warehouse operator defaults in carrying out the terms of this Agreement, CCC may assess a fee as part of 

the requirements for reinstatement to the CCC List of Approved Warehouses.

(3) Annual renewal fees will be announced if applicable.
CCC-823 (05-23-2019) Page 8 of 12

R. Security Plan 

 The warehouse operator must:

(1) Have a security plan that includes measures to protect cotton handled and stored under this Agreement.

(2) Conduct a facility vulnerability assessment and establish procedures that address:

 

(a) General security of the physical structures and grounds of the warehouse,

 

(b) Shipping and receiving procedures to ensure that cotton is not subject to tampering,

(c) Action to be taken in the event of a national emergency and Contact information for local security 

 authorities.

S. Delivery, Service and Shipping Standard

(1) The warehouse operator will:

(a) Unless prevented from doing so by severe weather conditions, fire, explosion, flood, earthquake, 

 insurrection, riot, strike, labor dispute, acts of civil or military authority, non-availability of transportation 

facilities, or any other cause beyond the control of the warehouse operator that renders performance 

impossible, deliver stored cotton without unnecessary delay.

(b) Be considered to have delivered cotton without unnecessary delay if, for the week in question, the 

warehouse operator has made available for shipment at least 4.5 percent of their applicable storage capacity 

in effect during the relevant week of shipment.

(2) Notwithstanding any reporting requirements found elsewhere in this Agreement, the warehouse operator will 

report to CCC on a weekly basis bales made available for shipment (BMAS) during such week. The reporting 

week is the seven-day period starting at midnight following the close of business (COB) on Saturday and 

ending at midnight after COB of the following Saturday. The warehouse operator shall report to CCC before 

COB of the first business day of the following week. This report will include:

(a) BMAS, defined as: 

(i) New PBI/mark combinations not already counted in a previous week as made ready during a

defined period, equaling bales shipped plus bales not picked up. Bales not picked up will be reported

during that defined period as described in 7 C.F.R. Part 1423.11 Delivery and Shipping Standards for 

Cotton Warehouses. Report PBI/mark combinations to EWR in the weekly cotton flow reports. For 

purposes of determining compliance, the BMAS calculation shall be based on the regulation in 7 

C.F.R. Part 1423.11 Delivery and Shipping Standards for Cotton Warehouses. 

 (b) Applicable storage capacity determined by using the higher of:

(i) the CCC approved storage capacity or

(ii) the maximum number of bales stored at any time during the applicable crop year, and

 (c) Active shipping orders, defined as any cotton bales that:

 (i) Were scheduled and ready for delivery at any time prior to the reporting date, but (1) were not picked

 up by the shipper, (2) remain available for immediate loading, and either (3) another shipping date has

 not been arranged for such bales, or (4) such bales have not been charged a restocking fee

(3) CCC will not include or credit any shipped bale toward meeting the BMAS requirements in this section if the 

 warehouse receipt remains open or un-cancelled past the close of business of the next business day.
CCC-823 (05-23-2019) Page 9 of 12

(4) The warehouse operator may resolve any claim for noncompliance from any entity other than CCC with the 

 cotton shipping standard in a court of competent jurisdiction or through mutually agreed upon arbitration 

 procedures. In no case will CCC provide assistance or representation to parties involved in an arbitration 

 proceeding arising with respect to activities authorized under the CSA.

(5) The warehouse operator will:

 (a) be open for the purpose of receiving cotton for storage and delivering cotton out of storage and for 

settlement purposes every normal business day for a period of not less than six hours between the hours of 

8a.m. and 6 p.m.,

(b) post the warehouse business hours at the public entrance to both the office and warehouse, or

(c) post notice, in case the warehouse is not to be kept open as required, the period during which the warehouse 

 is to be closed and the name, the address, and telephone number of the person who will be authorized to 

 receive and deliver cotton stored in the warehouse.

PART 4 - CCC'S RESPONSIBILITIES

A. CCC Not Obligated to Store Cotton 

Nothing in this Agreement obligates CCC to tender cotton to the warehouse operator for storage or handling. The 

storage period for the cotton will be at the option of CCC.

B. Notices to Warehouse Operator 

(1) CCC will promptly send the warehouse operator a document listing the warehouse receipt numbers of cotton in 

storage at the warehouse on which CCC has made a loan to a producer.

(2) CCC will promptly submit to the warehouse operator a statement showing, by receipt numbers, the date on 

which each bale of cotton (other than loan cotton) becomes CCC-owned cotton.

C. Notices to Warehouse Operators Regarding Shipment 

When CCC-interest cotton is shipped to another approved warehouse for reconcentration, CCC will furnish the 

shipping and receiving warehouse operators a listing of such CCC-interest cotton by tag and receipt numbers. This 

section does not apply to CCC-loan cotton shipments using CCC-699C Cotton Transfer Agreement procedures. 

D. Warehouse Charges 

Charges on CCC-interest cotton will be determined and paid as follows:

(1) Receiving Charges - CCC will pay receiving charges on CCC-interest cotton in accordance with the rates 

specified in the Schedule of Rates in effect at the time the service was performed, provided, that CCC will pay a 

receiving charge on CCC-loan cotton only if: 

(a) A receiving charge has not been paid to the warehouse operator by or for the depositor of the CCC-loan 

cotton, and 

(b) CCC-loan cotton is either shipped from the warehouse on CCC's instructions, the initial loan period is 

extended, or CCC acquires title to the cotton.

(2) Storage Charges

(a) In lieu of section 25 of the Supplement to the Uniform Storage Agreement (CCC-20), as amended, CCC 

will make quarterly payments based on CCC prepared invoices in accordance with procedures as 

established by CCC. 
CCC-823 (05-23-2019) Page 10 of 12

(b) CCC will pay storage charges on CCC-interest cotton in accordance with rates specified in the Schedule of 

Rates in effect at the time the service was performed, provided storage charges on CCC-loan cotton will be 

paid by CCC only if storage charges have not been paid to the warehouse operator by or for the depositor 

of the CCC-loan cotton, and the CCC-loan cotton is shipped from the warehouse on CCC's instructions, or 

CCC acquires title to such cotton. However, in the event the initial loan period is extended, CCC will pay 

the accrued unpaid storage charges at the applicable rates specified in the Schedule of Rates in effect at the 

time the service was performed.

(c) Storage charges are accrued on a monthly basis. If CCC-interest cotton is in a warehouse during part of a 

month, the storage charges will be prorated for the time the cotton is actually stored by the warehouse 

operator.

(d) Storage charges will be paid by CCC through the storage stop date shown on the loading order when 

CCC-owned cotton is disposed of by CCC. If any such CCC-owned cotton is rejected prior to shipment 

from the warehouse, CCC will furnish the warehouse operator a listing of the rejected bales, and such 

cotton will, for the purposes of determining storage charges, be treated as never having been disposed of by 

CCC. CCC will pay the warehouse operator an amount equal to the cost of the insurance on such cotton, if 

any, paid by the warehouse operator for the period from the storage stop date shown on the loading order 

through the last day of the month in which such cotton is rejected.

(e) The rates specified in the Schedule of Rates shall cease to apply to CCC-loan cotton on the date that such 

cotton is redeemed from the loan and ceases to be CCC-interest cotton.

(3) Compression

(a) CCC-interest cotton must indicate a compression code of Gin Standard Density Bales (3) or Gin Universal 

Density Bales (5) to be eligible for a Marketing Assistance Loan. Flat bales are not eligible for a Marketing 

Assistance Loan or Loan Deficiency Payment. 

(b) The compression charge shall be at the rate specified in the Schedule of Rates in effect at the time the 

service is performed.

(4) Delivery or Outhandling

(a) The charge for delivery or outhandling of CCC-interest cotton ordered shipped by CCC will be at the rate 

specified in the Schedule of Rates in effect at the time the service was performed. 

(b) The warehouse operator must refund to producers any delivery or outhandling charge collected by the 

warehouse operator for cotton which becomes CCC-loan cotton while stored in the warehouse.

(c) No charge for delivery or outhandling will be paid by CCC when a charge for the service has been included 

in any other charge or has been otherwise collected.

(5) Other Charges

Charges for services authorized by CCC not listed in the Schedule of Rates will be at rates agreed to by CCC 

and the warehouse operator but not in excess of those charged other customers for the same service.

(6) Other Invoices

Any invoice for payment by CCC must be submitted on a form which is acceptable to CCC for amounts 

payable under this Agreement. All claims for payment must be submitted to CCC within 12 months from the 

date they were incurred, unless otherwise agreed to by the warehouse operator and CCC in writing. CCC is not 

obligated to pay claims not timely submitted.

(7) Restrictions on Payments.

(a) CCC will pay only for services authorized by CCC in writing.

 (b) No charge will be payable to the warehouse operator:
CCC-823 (05-23-2019) Page 11 of 12

(i) By a subsequent holder of the warehouse receipts representing cotton previously owned by CCC for 

any charges not authorized by this Agreement for services performed with respect to such cotton prior 

to the time it was pledged to CCC; 

 (ii) By a subsequent holder of the warehouse receipts representing cotton which had been covered by this 

Agreement for standard density compression, regardless of where such compression was performed, if 

such cotton has been compressed to a higher density; or 

 (iii) By CCC or a subsequent holder of the warehouse receipt for storage or handling of samples drawn on 

arrival or the inbound drayage from rail facilities, unless such charge was incurred at the request of 

CCC.

PART 5 - REMOVAL, TERMINATION, EFFECTIVE DATE 

A. Removal from the CCC List of Approved Warehouses 

(1) CCC may remove the warehouse from the CCC List of Approved Warehouses under this Agreement for:

 (a) Any material breach of the Agreement; 

 (b) Failure to pay any amount due to CCC; or

(c) Suspension or debarment of the warehouse operator or warehouse.

(2) CCC may charge a fee in accordance with Part Q of this Agreement prior to reinstatement of the warehouse to 

the CCC List of Approved Warehouses. 

(3) CCC may accelerate the maturity date of all loans on CCC-interest cotton, and loadout or otherwise dispose of 

all CCC-owned cotton in a warehouse which fails to be reinstated to the CCC List of Approved Warehouses. 

B. Termination 

(1) In addition to the grounds specified in other provisions of this Agreement, this Agreement may be terminated as 

follows:

(a) Either party may terminate this Agreement without cause with respect to any and all warehouses subject to 

this Agreement. Written notice of termination must be given to the other party at least 30 days prior to the 

date the termination is to be effective. Termination under this section will not give rise to any damages 

under this Agreement.

(b) CCC may terminate this Agreement immediately if the warehouse operator has committed a material 

breach of the terms of this Agreement.

(2) After termination of this Agreement, all provisions of this Agreement including, but not limited to, storage, 

loading out and settlement of CCC-interest cotton, will remain in effect until all CCC-interest cotton is 

removed.

(3) Notwithstanding any other provision of this Agreement relating to disputes, the warehouse operator may request 

that the Director of the Warehouse and Commodity Management Division review any Contracting Officer's 

determination which proposes termination of this Agreement. If the Director should agree to review the 

Contracting Officer's proposal, the Director will become the Contracting Officer with regard to this matter. 

Once the issue or issues which are the subject of the warehouse operator's request for the Director’s review are 

resolved, upon the Director’s direction, the original Contracting Officer may resume as the Contracting Officer 

for this Agreement.
CCC-823 (05-23-2019) Page 12 of 12

C. Effective Date

This Agreement will become effective upon the date hereinafter specified by CCC and will, as of such date,

supersede any existing Agreement, and any amendments, or supplements thereto between the warehouse operator

and CCC. This Agreement will remain in effect until the first annual renewal date thereafter and will be renewed

automatically for one year on each annual renewal date after the effective date unless previously terminated in

accordance with the provisions set forth above.

NOTE: The authority for collecting the following information is Pub. L 107-171. This authority allows for the collection of information 

 without prior OMB approval mandated by the Paperwork Reduction Act of 1995. The time required to complete this information 

 collection is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data 

 sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. 

 The following statement is made in accordance with the Privacy Act of 1974 (5 USC 552a). The authority for requesting the 

 following information is 15 U.S.C. 714 and regulations promulgated thereunder (7 CFR Parts 1427 and 1403). The information will 

 be used to complete the terms of an agreement between the warehouse operator and CCC. Furnishing the requested information 

 is voluntary, however, without it, eligibility to enter into an agreement with CCC cannot be determined. This information may be 

 provided to other agencies, IRS, Department of Justice, or other State and Federal enforcement agencies, and in response to a 

 court magistrate or administrative tribunal. The provisions of criminal and civil fraud statutes, including 18 USC 286, 371, 641, 

 651, 1001; 15 USC 714m; and 31 USC 3729, may be applicable to the information provided. RETURN THIS COMPLETED 

 FORM TO THE WAREHOUSE AND COMMODITY MANAGEMENT DIVISION, Beacon Facility, Mail Stop 9148 P.O. BOX 

419205, KANSAS CITY, MISSOURI 64141-6205 or electronically to warehousing@usda.gov

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, 

offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national 

origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived 

from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by 

USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident. 

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign 

Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the 

Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English. 

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at 

http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or write a letter addressed to USDA and provide in the letter all of the 

information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) 

mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410; (2) 

fax: (202) 690-7442; or (3) email: program.intake@usda.gov. USDA is an equal opportunity provider, employer, and lender.

5. WAREHOUSE OPERATOR: 6. COMMODITY CREDIT CORPORATION:

5A. 

 (COMPANY NAME)

5B. By: 6A. By:

 (SIGNATURE) (CONTRACTING OFFICER)

5C. Title: 6B. Effective Date: 

5D. BUSINESS TELEPHONE NO. WITH AREA CODE OF PERSON RESPONSIBLE 

 FOR RATES OFFERED: