United States Department of Agriculture

Commodity Credit Corporation

Form CCC-28, 

Sugar Storage Agreement

 
CCC-28 Sugar Storage Agreement 

(04-19-19)

Table of Contents

Part 1 Definition of Terms................................................................................................................ 1 

Part 2 General Terms

 A. Scope ............................................................................................................................... 2 

 B. Terms of Agreement to Prevail ....................................................................................... 2 

 C. Documents Incorporated by Reference ........................................................................... 3 

 D. Applicability .................................................................................................................... 3 

 

Part 3 Warehouse Operator’s Responsibilities

 A. Basis on Which the Sugar is Stored or Transferred ......................................................... 3 

 B. Determination of Weights and Quality............................................................................. 3 

 C. Obligation to Maintain Stocks .......................................................................................... 4 

 D. Condition of Sugar ........................................................................................................... 4 

 E. Receipting and Documenting Sugar ................................................................................. 4 

 F. Load Out Requirements ................................................................................................... 5 

 G. Rejection .......................................................................................................................... 5 

 H. Payment of Fees ............................................................................................................... 6 

 I. Records and Reports ......................................................................................................... 6 

 J. Financial ........................................................................................................................... 7 

 K. Inspections and Examinations .......................................................................................... 7 

 L. Transportation Requirements ........................................................................................... 8 

 M. Condition of Warehouse and Sugar .................................................................................. 8 

 N. Insurance .......................................................................................................................... 9 

 O. Security Plan .................................................................................................................... 9 

 

Part 4 CCC’s Responsibilities

 A. Storage Period .................................................................................................................. 9 

 B. Payment of Charges.......................................................................................................... 9 

 C. Restrictions on Payments ............................................................................................... 10 

Part 5 Settlement

 A. Settlement for Load Out .................................................................................................. 11 

 B. Commingled .................................................................................................................... 11 

 C. Identity Preserved ............................................................................................................ 11 

 D. Determination of Values ................................................................................................. 11 

Part 6 Termination and Effective Date 

 A. Termination ..................................................................................................................... 11 

 B. Effective Date .................................................................................................................. 12 
CCC-28

(04-19-19)

U.S. DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

SUGAR STORAGE AGREEMENT

1. Agreement No. AS -3- CCC

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

information identified on this form is 7 CFR Part 1423, 7 CFR Part 1435, and the Commodity Credit Corporation Charter Act (15 U.S.C. 714 

et seq.). The information will be used to enter into a Sugar Storage Agreement to store CCC owned and loan sugar. The information

collected on this form may be disclosed to other Federal, State, Local government agencies, Tribal agencies, and nongovernmental entities 

that have been authorized access to the information by statute or regulation and/or as described in applicable Routine Uses identified in the 

System of Records Notice for USDA/FSA-2, Farm Records File (Automated) and USDA/FSA-14, Applicant/Borrower. Providing the 

requested information is voluntary. However, failure to furnish the requested information will result in the inability to enter into a Sugar 

Storage Agreement to store CCC owned and loan sugar.

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 provisions of appropriate criminal and civil fraud, privacy, and other statutes may be applicable to the information provided. RETURN 

THIS COMPLETED FORM TO: warehousing@usda.gov or THE WAREHOUSE AND COMMODITY MANAGEMENT DIVISION, Beacon 

Facility, PO BOX 419205 STOP 9148, KANSAS CITY, MO 64141-6205.

 This Sugar Storage Agreement (“Agreement”) between the Commodity Credit Corporation (CCC), an agency and 

instrumentality of the United States within the Department of Agriculture, and (2)

, (“warehouse operator”) whose principal place

of business is (3) ,

is for the storage and handling of CCC-owned sugar or sugar pledged as collateral for a CCC loan.

Subject to space being available, the warehouse operator offers to store and handle sugar in the warehouse identified

on the Schedule of Warehouses which is owned or operated by the warehouse operator at the rates specified on the 

Schedule of Rates.

The warehouse operator and CCC agree as follows:

PART 1. DEFINITION OF TERMS - For purposes of this Agreement, the following definitions shall 

apply:

Approved List - CCC List of Approved Warehouses - A list of sugar warehouses approved by CCC to store 

CCC-interest sugar and who have executed a CCC Sugar Storage Agreement. Warehouses that have been

removed from the CCC List of Approved Warehouses may not accept sugar to be pledged as collateral for a

loan, nor will additional CCC-owned sugar be placed in the warehouse until the warehouse is reinstated to the

Approved List.

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

CCC - The Commodity Credit Corporation, a wholly-owned government corporation within the U.S. 

Department of Agriculture.

CCC-Interest Sugar - Sugar in which title is vested in CCC, or sugar placed in storage by someone other than

CCC and pledged to CCC as security for a CCC loan.

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.
CCC-28 (04-19-19) Page 2 of 12

CCC Loan Sugar - Sugar placed in storage by someone other than CCC and pledged to CCC as security for a 

CCC loan.

CCC-Owned Sugar - Sugar in which title is vested in CCC.

Commingled - The storage or handling of bulk sugar under any circumstances other than identity 

preserved.

 

Delivery - The receiving of CCC-owned sugar by a warehouse operator listed in the Schedule of

Warehouses or the return by the warehouse operator of CCC-owned sugar to CCC or CCC’s designee.

Identity Preserved - The storage and handling of sugar separate from all other sugar so the actual sugar 

deposited in the warehouse, and no other, may be delivered to the person holding title to such sugar. 

KC-227 (Raw Sugar Acquisition Report) - A form provided by the Warehouse and Commodity Division 

(WCMD) to the receiving warehouse operator for recording raw sugar received for storage. 

KC-227-A (Refined Sugar Acquisition Report) - A form provided by the WCMD to the receiving 

warehouse operator for recording refined sugar received for storage.

Loadout - Removing the sugar from the warehouse and loading the sugar into conveyances. 

Quality - Descriptive factors that are normally used in commercial trade practices to describe sugar 

characteristics. 

Receiving - Receiving and unloading all of the sugar from conveyances and placing it in the warehouse.

Sugar - Any grade or type of saccharine product derived, directly or indirectly, from sugarcane or sugar beets 

and consisting of, or containing, sucrose or invert sugar, including all raw sugar, refined crystalline sugar, 

liquid sugar, edible molasses, cane syrup, and in-process sugar. 

 Warehouse - Each sugar warehouse listed on the Schedule of Warehouses.

 

Warehouse Operator - Person who owns or manages a sugar warehouse. “Warehouse operator” shall also 

include “processor” whenever used. 

PART 2. GENERAL TERMS -

A. Scope - This Agreement will apply to all sugar as of the date:

 (1) CCC deposits such sugar in the warehouse, 

 (2) title to the sugar passes to CCC, or 

 (3) it is stored in the warehouse and is pledged to CCC as security for a sugar loan.

B. Terms of Agreement to Prevail - Applicable Federal laws and regulations and the terms of this 

Agreement prevail over the written or printed terms of title documents representing sugar, the warehouse’s 

tariff or posted rates, and State and local laws or regulations to the extent such laws or regulations are 

inconsistent with the Agreement’s provisions or the laws and regulations of the United States. Any State 

law, local law, regulation, or tariff provision which are inconsistent with or imposes additional restrictions

on the provisions of Federal law and regulation or this Agreement is of no effect to the extent of such 

inconsistency or additional restriction.
CCC-28 (04-19-19) Page 3 of 12

C. Documents Incorporated by Reference - This Agreement includes and hereby incorporates by reference 

the following and amendments thereto:

 (1) Schedule of Warehouses, CCC-25-1 

 (2) Schedule of Rates, CCC-28-2 

 (3) Supplement to Uniform Storage Agreements, CCC-20, and

 (4) 7 CFR Parts 1423, 1435, 1403, and 1407.

 D. Applicability - 

(1) If CCC transfers title to CCC-owned sugar in store, such sugar will cease to be covered by the terms 

of this Agreement as of 11:59 p.m. local time at the warehouse location on the day title and risk of 

loss is transferred to the transferee, except that any prepaid charges for service not performed prior to 

the transfer of title will inure to the benefit of the transferee. Except as provided in Paragraph D (2), 

the rights and obligations of the parties for sugar so transferred and charges for storage and other 

services furnished thereafter are subject to commercial terms and conditions and applicable Federal or 

State laws and regulations or subject to further agreement between the warehouse operator and the 

transferee unless otherwise specifically provided herein. The transfer of title does not affect the rights 

and obligations between the warehouse operator and CCC for any matter arising prior to the transfer. 

(2) If CCC transfers title to CCC-owned sugar in store, the storage and handling rates contained in the 

Schedule of Rates will apply to the sugar until it is loaded out, provided the transferee, in writing, 

orders the sugar loaded out for immediate shipment within 30 days after the date title is transferred. 

If the transferee does not request, in writing, loadout within 30 days after the date title is transferred, 

the storage and handling rates applicable to the transferee for the sugar shall not exceed CCC’s 

Schedule of Rates in effect at the time of title transfer until the earlier of: 

 (a) 60 days, or

 (b) title to the sugar is transferred by the transferee to another party, or

 (c) the transferee loads the sugar out of the warehouse.

PART 3. WAREHOUSE OPERATOR’S RESPONSIBILITIES

A. Basis on Which the Sugar Is Stored or Transferred -

 (1) CCC-interest sugar will be stored in bulk and commingled, unless CCC and the warehouse 

 operator agree, in writing, to store the sugar in another manner. 

(2) The warehouse operator will store CCC-interest sugar only at a warehouse listed on the 

Schedule of Warehouses, unless CCC and the warehouse operator agree, in writing, to store 

the sugar at another location. 

 (3) Transfers of CCC-owned sugar from bulk storage to packaged stocks may be made only in 

 accordance with instructions from CCC. The expense of such transfer, including the cost of 

 weight and inspection certificates, will be for the account of the party requesting the transfer.

B. Determination of Weights and Quality -

 (1) Unless otherwise directed by CCC, the quantity of CCC-interest sugar accepted by the

 warehouse operator and loaded out by the warehouse operator at CCC’s request must be

 based on the use of warehouse operator’s scales. 
CCC-28 (04-19-19) Page 4 of 12

 (2) Unless otherwise directed by CCC, the quality of CCC-owned sugar loaded out by the

warehouse operator at CCC’s request (whether such sugar is to be delivered in bulk or as 

packaged stocks) must be determined on the basis of a sample drawn by a CCC 

representative.

(3) CCC will pay the cost of inspection certificates for CCC-owned sugar. 

 (4) Either the owner of the sugar or the warehouse operator may call for an appeal inspection.

The appeal inspection certificate will prevail. The party requesting the inspection or the

appeal will pay the cost of the inspection certificates.

 C. Obligation to Maintain Stocks -

 (1) The warehouse operator at all times must maintain at the warehouse listed on the Schedule of

 Warehouses a quantity of sugar equivalent to the aggregate quantity on all outstanding KC-227’s, 

 KC-227-A’s, or other documentation acceptable to CCC, and such quality shall be of the same 

 quality which the warehouse operator is obligated to deliver, 

(2) For identity preserved sugar, the warehouse operator at all times must maintain the identical sugar 

in the warehouse listed on the Schedule of Warehouses and as recorded on the KC-227’s, 

 KC-227-A’s, or other documentation acceptable to CCC.

D. Condition of Sugar - 

 (1) The warehouse operator must store the sugar in accordance with good commercial practices.

 (2) For commingled sugar, the warehouse operator: 

 (a) must, at the warehouse operator’s expense, take all steps necessary to preserve the condition 

 of all sugar stored or handled under this Agreement. 

 (b) must, at the warehouse operator’s expense, if deterioration cannot be prevented after the

 warehouse operator has exercised such care in receiving, storing, and conditioning as would a

reasonably prudent owner, immediately notify CCC of the circumstances, confirm such notice 

in writing and dispose of or care for such sugar as directed by CCC. Any expense for action

 directed by CCC, not related to warehousing of the sugar, will be for the account of CCC. 

(c) is liable for deterioration in the quality of the commingled sugar which occurred prior to the 

time of such written notice to CCC. 

 (d) will be liable for deterioration occurring after such notice which results from the warehouse 

 operator’s failure to exercise due care or failure to comply with the directions of CCC and the 

 provisions of this Agreement.

 (3) For identity preserved sugar, the warehouse operator must take action as may be necessary to: 

 (a) promptly determine when the sugar stored identity preserved is in need of conditioning;

(b) immediately notify CCC and confirm in writing the action required; and

 

 (c) care for, recondition, or dispose of such sugar in accordance with CCC’s directions. 

 

E. Receipting and Documenting Sugar -

 (1) The warehouse operator, on receipt of sugar accepted for storage under this Agreement or when 

 sugar is acquired by CCC in store, must furnish to CCC a form KC-227, KC-227-A, or other

 documentation acceptable to CCC made out in the name of CCC for the quantity, quality, and

 location where sugar is stored (form KC-227-A is used for both beet and cane refined sugar),

 representing such sugar. 
CCC-28 (04-19-19) Page 5 of 12

(2) If requested by CCC, the warehouse operator also will furnish, on such form as CCC may 

prescribe and in accordance with CCC’s instructions, a supplemental certificate identified to each 

such KC-227, KC-227-A, or other documentation acceptable to CCC.

(3) Information as to quality shown on inspection certificates issued on samples drawn at the time of 

issuance of the KC-227, KC-227-A, or other documentation acceptable to CCC will govern 

notwithstanding conflicting entries on the KC-227, KC-227-A, or other documentation acceptable to 

CCC.

 (4) The warehouse operator, on receipt of sugar for handling only or direct transfer, must promptly

furnish documents in such form as CCC may prescribe and in accordance with CCC’s instructions.

F. Load Out Requirements – 

 (1) In accordance with CCC’s issued instructions, the warehouse operator must loadout, or transfer in 

 store, bulk sugar that meets the same quantity and quality specifications as stated on the KC-227, 

 KC-227-A, or other documentation acceptable to CCC as that received from CCC for storage by 

 the warehouse operator. For sugar ordered loaded out by CCC, the warehouse operator must:

 (a) Loadout such sugar as directed by CCC. The shipping instructions issued by CCC will allow

 the warehouse operator at least seven (7) calendar days from the date of issuance of such 

 instructions to begin loadout and will provide for loadout capability at a rate not to exceed 

 that specified in the Schedule of Warehouses. Shipments may be loaded out under the 

 supervision of a CCC representative, as provided in the shipping instructions.

(b) If shipment of the sugar will be delayed, promptly notify CCC as soon as the delay is 

apparent. The warehouse operator must promptly furnish documentary evidence of the cause 

for the delay. CCC will not assess the warehouse operator for damages or demurrage if CCC 

determines that the delay was without the fault of, and beyond the control of, the warehouse 

operator.

(2) If for any reason sugar shipments cannot be made as instructed, promptly notify CCC as soon as 

it is apparent the shipping schedule cannot be met. Failure of the warehouse operator to ship in 

accordance with such instructions will cause serious and substantial damage to CCC because of 

its urgent need for prompt delivery. The warehouse operator shall pay to CCC, as compensation 

and not as a penalty, liquidated damages at the rate of $0.10 per 100 pounds net per day, in 

addition to loss of daily storage payment. The parties mutually agree that in view of the 

difficulty of determining exact damages which would be incurred by CCC, the liquidated 

damages specified are a reasonable estimate of the damages which would be suffered by CCC as 

a result of the warehouse operator’s failure to meet the shipping schedule. If delays were caused 

by reasons beyond the control and without the fault of the warehouse operator, the warehouse 

operator shall promptly furnish documentary evidence of the cause(s) which resulted in late 

shipment. If CCC determines that such causes were beyond the warehouse operator’s control, 

liquidated damages will not be assessed.

G. Rejection - 

 (1) CCC may reject sugar if the sugar does not meet the same quantity and quality specifications as 

 that received by CCC for storage by the warehouse operator. 

(2) The warehouse operator: 

(a) will not receive credit for loading sugar rejected by CCC,

(b) must arrange for the disposition of the rejected sugar,
CCC-28 (04-19-19) Page 6 of 12

(c) must either replace rejected sugar with sugar that meets the loading order specifications, or 

pay CCC the current market price for like sugar, as determined by CCC, for sugar not replaced.

(3) CCC may accept sugar that is subject to rejection if it is determined by CCC to be in CCC’s best 

interest. 

H. Payment of Fees - 

 

As set forth in (1) through (5) of this paragraph, each warehouse operator who is not licensed under the 

United States Warehouse Act (USWA) for sugar must pay fees to CCC.

(1) The application and inspection fee for sugar shall be that announced by Agricultural Marketing 

Service (AMS) for USWA warehouse operators. Warehouse operators without an existing CCC 

Sugar Storage Agreement must pay an application and inspection fee for each warehouse for which 

CCC approval is sought before CCC conducts the original warehouse examination. Warehouse 

operators with such an existing Agreement and who desire to change the storage capacity subject to 

such Agreement, must pay an application and inspection fee for each change before inspection and 

approval by CCC.

(2) The annual Agreement fee shall be as announced by CCC. Unless a waiver is in effect, a 

warehouse operator must pay the annual Agreement fee before CCC will execute the initial 

Agreement, and the fee will be prorated based upon the total number of months for which the 

Agreement is to be effective, or the applicable Agreement’s renewal date.

 

(3) When a warehouse operator requests that CCC examine the warehouse for the warehouse

operator’s sole benefit, the warehouse operator shall pay CCC an examination fee equal to one and

one-half times the amount of the applicable annual Agreement fee in (2) of this paragraph for the

examination.

(4) When a warehouse operator defaults in carrying out the terms of this Agreement, and CCC 

determines a reexamination is necessary to ensure Agreement violations have been corrected, the 

warehouse operator shall pay an examination fee equal to the inspection fee in (2) of this paragraph 

before CCC will schedule the examination.

(5) CCC may waive any portion of the fees in (1) and (3) of this paragraph when CCC determines that

no examination will be performed by CCC or acceptable examination results are made available to

CCC by a State licensing authority. 

I. Records and Reports -

 The warehouse operator must:

 (1) Maintain current and complete records at all times for all sugar stored, handled, or under the 

 control of the warehouse operator. 

(2) Unless otherwise authorized by CCC, retain such records as required in section 12 of the 

Supplement to Uniform Storage Agreements.

 

 (3) Provide access to records on-site, unless otherwise agreed to, in writing, by CCC. 

(4) Furnish CCC requested reports related to receiving, storing, and delivering sugar and the financial

condition of the warehouse. 

(5) Immediately notify CCC in writing of any change in ownership or operation of the warehouse or

of any change in the nature or capacity of the warehouse.
CCC-28 (04-19-19) Page 7 of 12

J. Financial -

(1) Financial statements must be submitted to the Warehouse and Commodity Management Division: 

Attn Financial Review, P.O. Box 419205 Stop 9148, Kansas City, Missouri 64141-6205, within 90 

days after the close of the warehouse operator’s fiscal or calendar year. Only one financial statement 

is required for a chain of warehouses owned or operated by a single business entity. If approved by

 CCC, the financial statement requirements in the Standards for Approval of Warehouses for 

 CCC-interest Commodity Storage, 7 CFR Part 1423, may be met by one of the following:

 (a) a parent company of a wholly-owned subsidiary when the warehouse operator’s financial 

position is separately identified on all applicable consolidated statements. 

 (b) a guaranty agreement from:

 (i) a parent company submitted on behalf of a wholly-owned subsidiary, or

 (ii) an entity with substantial interest in the warehouse operator when applicable financial

 statements are prepared at the audit level. 

 (2) Approved warehouse operators shall have a minimum net worth of $50,000.

(3) Warehouse operators shall have a calculated net worth equal to the warehouse operator’s maximum 

storage capacity at all locations covered by the storage agreement times $1.15 per hundredweight. 

K. Inspections and Examinations -

 (1) The warehouse operator must:

 (a) permit CCC to examine any or all warehouse facilities, records, or inventory without prior notice 

at any time,

 

(b) upon request, provide any assistance necessary to perform the examination,

(c ) notify CCC in writing if any special requirements or equipment are needed to perform an 

examination,

(d) take reasonable steps to reduce or remove risks or hazards that could affect an examination. The 

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

warehouse or its equipment (e.g. ladders, catwalks, lifts or elevators) is not safe to conduct or 

continue the examination of the warehouse. 

(2) Examinations and inspections will not relieve the warehouse operator of any responsibilities or 

requirements under the terms of this Agreement or under any law or regulation applicable to the 

warehouse operator. 

(3) 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. 

(4) CCC does not guarantee the results of its examinations to the warehouse operator or any other 

party. However, for the purposes of this Agreement, the findings of these examinations will be 

accepted by CCC.
CCC-28 (04-19-19) Page 8 of 12

 

L. Transportation Requirements -

 (1) When CCC requests the warehouse operator to accept for delivery or load out CCC-owned sugar, 

 the warehouse operator will:

(a) indemnify CCC against losses in weight due to the warehouse operator’s error in weighing or 

 failure to remove all the sugar from the transportation conveyance on unloading. 

(b) indemnify CCC against minimum weight penalties (except where losses in weight were incurred 

due to circumstances beyond the warehouse operator’s control), detention, and demurrage 

(including storage in transportation equipment). 

(c ) assume all switching charges (inbound or outbound) which are recoverable or which are not 

absorbed by the carrier. The warehouse operator will not be liable for switching charges 

(inbound or outbound) which occur as the result of erroneous routing instructions by CCC. 

(d ) request authorization in writing from CCC for prepayment of freight. 

(e) be liable for any deviation from original shipping instructions and all excess freight charges 

resulting from routing at variance with instructions issued by CCC.

(f) be liable for all weighing and return freight charges related to rail cars that are weighed and 

returned by the railroad(s) to the warehouse operator as overloaded. 

(2) If the warehouse operator knows, anticipates, or reasonably should have known that demurrage 

charges may be incurred, the warehouse operator must immediately notify CCC and confirm such 

notification in writing. The warehouse operator will pay all appropriate demurrage charges. CCC 

will reimburse the warehouse operator for all appropriate demurrage charges paid by the

warehouse operator if the demurrage is incurred due to circumstances beyond the warehouse 

operator’s control, unless the warehouse operator fails to notify CCC as provided in this section.

 

M. Condition of Warehouse and Sugar -

 (1) The warehouse operator must maintain the warehouse in a sound, clean condition and take all

 reasonable steps to keep it free of insects, rodents, birds, and other conditions which may 

 adversely affect the condition of the sugar or its package.

(2) The warehouse operator must take all reasonable steps to promptly detect any deterioration, insect 

infestation, rodent damage, mold, clumping, or any other condition which may adversely affect

the condition of the sugar or its package.

(3) The warehouse operator must notify CCC when any of the conditions in paragraph (1) or (2) of this 

paragraph are detected and confirm such notification in writing. Pending receipt of instructions from 

CCC, the warehouse operator must take all reasonable steps necessary to protect and preserve the 

affected sugar or its package.

(4) In the event of any loss or damage to the sugar or the warehouse, the warehouse operator will 

immediately notify CCC and all other parties having an interest in the sugar stored in the warehouse 

as that interest may appear on the warehouse operator’s records.

(5) The warehouse operator will be liable for all losses or damage of sugar resulting from warehouse 

operator’s negligence or failure to discharge promptly and properly the warehouse operator’s 

obligations under this Agreement and by the failure of the warehouse operator to exercise such care in 

regard to the sugar as a reasonable and prudent warehouse operator would exercise under like 

circumstances.
CCC-28 (04-19-19) Page 9 of 12

(6) If loss of or damage to the sugar occurs for which the warehouse operator is not liable, CCC will pay 

the warehouse operator for labor services performed at the rate specified in the Schedule of Rates and 

reimburse the warehouse operator for other reasonable costs incurred in performing those services 

which are not included among the protective and preservative services ordinarily performed by the 

warehouse operator for other depositors without additional charge.

N. Insurance -

 Without in any way limiting the warehouse operator’s obligation under other provisions of this 

 Agreement or under the provisions of the State laws and regulations under which the warehouse is

 operated:

 (1) The warehouse operator is not obligated to insure CCC-owned sugar.

 (2) If the warehouse operator insures CCC-owned sugar, such insurance will inure to the benefit

 of CCC.

 O. Security Plan - 

 The warehouse operator must:

 (1) Have a security plan that includes measures to protect the sugar 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,

 (b) shipping and receiving,

 (c) emergency action planning, and

 (d) contact information for local authorities.

 

PART 4. CCC’S RESPONSIBILITIES

A. Storage Period - 

 (1) Nothing in this Agreement obligates CCC to tender sugar to the warehouse operator for storage or

 handling.

(2) The issuance of loading orders or a request for storage space does not obligate CCC to tender 

sugar for storage. 

(3) If CCC-owned sugar is in store, the storage period will be at the option of CCC. 

B. Payment of Charges -

(1) Unless otherwise provided, handling, storing, or other charges payable by CCC pursuant to this 

 Agreement will be at the rates stated in the Schedule of Rates as follows:

(a) receiving services performed prior to CCC ownership will not be paid;

(b) storage or other charges will be paid at the rate in effect when the services are performed;

(c) load out charges shall be for CCC’s account if directed by CCC.
CCC-28 (04-19-19) Page 10 of 12

(2) Storage charges for the account of CCC begin for sugar:

 

 (a) in store at the time this Agreement becomes effective, on the date this Agreement is executed 

 by CCC;

(b) delivered to the warehouse on or after the effective date of this Agreement, on the date of

movement of such sugar into the warehouse; and

 (c) which is acquired by CCC in store, on the day immediately following the date through which 

storage charges have been provided for by the previous owner.

 (3) Storage charges will cease to accrue for the account of CCC when:

 (a) CCC orders sugar to be delivered, on the date the bill of lading is receipted for by the carrier or 

on the final shipment date specified in the shipping instructions as issued or amended in writing 

by CCC, whichever is earlier, or

(b) sugar is sold or transferred to another party by CCC, in store, on the date specified by CCC.

 (4) Storage charges payable for a fractional part of the:

 (a) first calendar month during which the sugar is in storage in the warehouse will be prorated to 

 the same extent as the days in storage relates to the full calendar month. Storage charges 

 payable thereafter, except for the final partial calendar month, will be at the full monthly 

 storage rate.

(b) final calendar month during which the sugar is in storage in the warehouse will be prorated to the 

same extent as the days in storage relate to the full calendar month and will be paid after receipt 

and entry into CCC’s accounting records of the applicable bill of lading or other delivery 

documents acceptable to CCC.

 (5) Payment will be made monthly by CCC for sugar recorded in CCC’s inventory after presentation 

 by the warehouse operator of a properly certified invoice in such manner and form as may be 

 prescribed by CCC. The first payment after receipt of the sugar will include any amount due from 

 CCC for loadout charges, if applicable. The warehouse operator must promptly reimburse CCC 

 for any overpayment made by CCC. 

C. Restrictions on Payments - 

(1) CCC will not pay for any service (including overtime, Sunday, and holiday labor service) not 

 specifically authorized by this Agreement or in writing by CCC. Services not specifically 

 authorized by this Agreement will be performed only after CCC determines that such services are 

 required and should be performed.

(2) CCC will not be liable for any charges which are for the account of previous or subsequent owners 

of sugar nor will CCC be liable for receiving charges on sugar acquired by CCC in store. 

(3) Nothing in this Agreement authorizes or requires payment for services already paid for by CCC or 

any other party.
CCC-28 (04-19-19) Page 11 of 12

(4) If any of the sugar is lost or rejected to the warehouse operator, all storage charges for the account of 

CCC for that sugar will cease as of the date of loss or rejection to the warehouse operator. 

(5) No charges of any kind will be payable for sugar disposed of contrary to the terms of this Agreement 

and the instructions of CCC, and any such charges already paid by CCC will be immediately refunded 

by the warehouse operator.

PART 5. SETTLEMENT -

A. Settlement for Load Out - 

 Except as otherwise provided in this Agreement, settlement will be made by CCC in accordance with this 

Part with respect to each individual warehouse for differences in value between sugar loaded out by the 

warehouse operator and the sugar ordered shipped by CCC. Except to the extent that liability is limited by 

other provisions of this Agreement, the warehouse operator is liable as an insurer and must indemnify 

CCC in the manner and to the extent provided in this Part for any failure to deliver sugar meeting the 

requirements in Part 3 of this Agreement.

B. Commingled - 

 For commingled sugar, the warehouse operator must, upon demand, pay CCC in cash the value of sugar:

 (1) Ordered loaded out by CCC which is not shipped by the warehouse operator;

 (2) Shipped by the warehouse operator which is rejected by CCC; or

(3) Shipped with quality deficiencies and accepted by CCC. 

C. Identity Preserved - 

 For identity preserved sugar shipped to CCC, the warehouse operator must, upon demand, pay CCC in 

cash for the value of shortages in quantity and deficiencies in quality of such sugar which result from the 

warehouse operator’s failure to exercise due care, provide appropriate warehousing services, or comply 

with the directions of CCC and the provisions of this Agreement. If the identity preserved sugar is 

commingled with other sugar or if the identical sugar received by the warehouse operator is not delivered, 

the warehouse operator’s liability will be settled in accordance with the provision of Paragraph B above.

D. Determination of Values - 

 For settlement purposes, the value of sugar shall be determined by CCC at the time and place of loss by 

reference to applicable markets and adjusted for freight, if necessary, or in the absence of generally 

recognized markets, CCC’s investment in the sugar.

PART 6. TERMINATION AND EFFECTIVE DATE 

A. Termination - 

 In addition to the grounds specified in other provisions of this Agreement, this Agreement may be 

 terminated as follows:

 (1) Either party may terminate this Agreement without cause for 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

Part will not give rise to any damages under this Agreement.
CCC-28 (04-19-19) Page 12 of 12

 (2) CCC may terminate this Agreement immediately if the warehouse operator has violated the terms

 of this Agreement.

 (3) After termination of this Agreement, all provisions applicable to the storage, loading out, and 

 settlement of sugar in this Agreement remain in effect pending removal of CCC-owned sugar.

 (4) Notwithstanding any other provision of this Agreement relating to disputes, the warehouse 

operator may request that the Director, 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 review are resolved, upon the Director’s direction, the 

original Contracting Officer may resume as the Contracting Officer for this Agreement. 

B. Effective Date - 

This Agreement will become effective upon the date signed by CCC, and will, as of such date, supersede 

any existing Agreement and any amendments between the warehouse operator and CCC. This Agreement 

will remain in effect until the first of October thereafter and will be renewed automatically for one year on 

each October 1 after the effective date.

 

4. WAREHOUSE OPERATOR: 5. COMMODITY CREDIT CORPORATION:

5A. By_______________________________________

(CONTRACTING OFFICER) 4A.

(COMPANY NAME)

4B. By________________________________________

(SIGNATURE) 5B. Effective Date: 

4C. Title: