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. (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) ▇▇▇▇ all warehouse receipts with dates that ▇▇▇▇▇ 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.
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