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§ 202.9 hereof.)* [Sec. 1, 1938 CCC Wool Form 1, 3 F.R. 993, as amended by 1938 Wool Circ. Letter 2, May 13, 1938]

*88 202.1 to 202.15, inclusive, issued under the authority contained in E.O. 6340, Oct. 16, 1933, sec. 7, 49 Stat. 4, sec. 2, 50 Stat. 5.

202.2 Forms. The following forms are available for use in connection with loans made or eligible paper purchased by Commodity Credit Corporation:

(a) Wool Producer's Note (1938 CCC Wool Form A).

(b) Wool Pool Note (1938 CCC Wool Form B).

(c) Collateral Note for Cooperative (1938 CCC Wool Form C).

(d) Appraiser's Certificate to be executed by appraisers of Commodity Credit Corporation (1938 CCC Wool Form D).

(e) Producer's Letter of Transmittal (1938 CCC Wool Form E).

(f) Lending Agency's Letter of Transmittal (1938 CCC Wool Form F). (g) Producer's Authority to Pool (1938 CCC Wool Form G).

(h) Contract to Purchase (1938 CCC Wool Form H).

(1) Schedule of Repayments (1938 CCC Wool Form J).**

†In §§ 202.2 to 202.15, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in Instructions concerning the making of loans by Commodity Credit Corporation on the security of wool or mohair represented by warehouse receipts, 1938 CCC Wool Form 1, 3 F.R. 993. 202.3 Wool loan basis. Following are the classifications and scoured or clean wool values of wool in Boston which form the basis for determining the amounts to be loaned against grease wool of comparable grades:

Fine wool:

CLASSIFICATION

Class 1. Very choice wool____

(a) Delaine.

(b) Graded territory combing (strictly staple).

Class 2. Choice wool___

Value scoured or clean wool

(Cents per pound)

(a) Choice 12 months' Texas, including original bags bulk combing length.

(b) Graded territory; choice French combing length, including

some staple.

(c) Original bag territory; bulk staple length, including some French combing.

Class 3. Average to good wool_.

(a) 12 months' Texas, including original bags.

(b) Graded territory; French combing length.

(c) Original bag territory; good French combing length.

Class 4. Fair to average wool__.

(b) Graded territory; short to average French combing length.
(c) Original bag territory; average French combing length.

(a) 12 months' Texas, including original bags.

Class 5. Poor and inferior__

(a) Original bag bulk clothing and some stubby.

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(b) Original bag territory; mostly half-blood, may include some three

eighths or some fine.

(c) Graded territory clothing.

*For statutory citation, see note to § 202.1.

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Appraisers for Commodity Credit Corporation will determine the shrink and classification and compute the loan value of the wool. As to wool stored at points other than Boston, appraisers for Commodity Credit Corporation, in computing the loan value of the wool, will also make appropriate allowance for rail transportation to Boston. For Texas clips other than 12 months', the appraiser will reduce the value in the classification by the customary trade differential. A deduction of 5 cents per clean pound will be made by appraisers for all fleece wool and for wool produced in central and southern California and 2 cents per clean pound for wool produced in northern California. A deduction of 20 cents per bag will be made by the appraisers for an appraisal charge on each loan secured by warehouse receipts representing original bag wool which can be readily sold in such original bags of 5,000 pounds or more and/or on grading wools, whether fleece or territory, of 25,000 pounds or more. An additional charge of 20 cents per bag will be deducted from each loan secured by lesser quantities of wool. On wool which is graded and piled in the warehouses, the appraiser will deduct, as the appraisal charge, 20 cents for each 400 pounds or fraction thereof.

(a) Mohair loan basis. Following are the classifications and grease mohair values:

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Appraisers for Commodity Credit Corporation will determine the classification and compute the loan value of the mohair. A deduction of 20 cents per bag will be made by appraisers as an appraisal charge, provided that for lots of less than 5,000 pounds 40 cents per bag will be deducted.

(b) Maturity and interest rate. The loans will mature 10 months from date or May 31, 1939, whichever is earlier, and will bear 4 percent interest.*+

202.4 Loans through cooperative association. Any producer who is a member of a cooperative marketing association may negotiate loans through such an association. Cooperative marketing asso

*For statutory citation, see note to § 202.1.

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ciations meeting the requirements of the Capper-Volstead Act (42 Stat. 388; 7 U.S.C. 291, 292) may arrange to secure funds from Commodity Credit Corporation necessary to enable such associations to make loans or advances to their members or member associations.*t

CROSS REFERENCE: For loan requirements from Federal intermediate credit banks to cooperative marketing associations, see Part 44.

202.5 Receipts issued by approved warehouses, acceptable as collateral. Commodity Credit Corporation will accept only negotiable insured warehouse receipts covering wool or mohair pledged as collateral to notes on 1938 CCC Wool Forms A, B, or C issued by any public warehouse approved by the Loan Agency of the Reconstruction Finance Corporation serving the district in which such warehouse is located. Warehousemen are advised to communicate with the Loan Agency of the Reconstruction Finance Corporation concerning approval. Each approved warehouse must enter into an agreement with the Commodity Credit Corporation which may be obtained from the Loan Agency. This agreement will limit the warehouseman's lien and define his obligations to Commodity Credit Corporation. All wool or mohair pledged as security for a note must be in the same warehouse. A list of the approved warehouses and their locations will be available at any Loan Agency of the Reconstruction Finance Corporation listed in § 202.14.*t

202.6 Requisites of warehouse receipts. Only negotiable, insured warehouse receipts dated on or prior to the date of the related note and properly assigned by an endorsement in blank so as to vest title in the holder, or issued to bearer, executed by warehousemen who are not owners of the wool or mohair, will be acceptable. The insurance furnished by the warehouseman must cover fire, lightning, and windstorm. Such receipts must set out in their written or printed terms a description by lot number, weight of the wool or mohair, and the number of bags represented thereby, or description of graded pile, and all other facts and statements required to be stated in the written or printed terms of a negotiable warehouse receipt under the provisions of section 2 of the Uniform Warehouse Receipts Act.*†

NOTE: The United States Warehouse Act, sec. 18, 39 Stat. 488, as amended, 41 Stat. 266, 42 Stat. 1284; 7 U.S.C. 260, contains provisions similar to those contained in sec. 2 of the Uniform Warehouse Receipts Act as well as other provisions not contained therein.

202.7 Appraisers. Commodity Credit Corporation will employ appraisers who will be available from time to time at the approved warehouses for the examination and appraisal of pledged wool or mohair. Producers or wool pools or cooperatives desiring to have their wool or mohair appraised should so advise the warehouseman, who will make the necessary arrangements with the appraisers when the warehouse receipts are issued. After examining the wool or mohair the appraiser will issue an appraisal certificate on 1938 CCC Wool Form D, of which two copies will be attached to the warehouse receipts and delivered to the producer or the wool pool or cooperative or order. The original appraiser's certificate and warehouse receipts must accompany the related note."t

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*For statutory citation, see note to § 202.1.

202.8 Preparation of documents. A producer or wool pool desiring a loan upon eligible wool or mohair may obtain the necessary forms from the Loan Agencies of the Reconstruction Finance Corporation listed in § 202.14 of the instructions in this part. Such forms may also be obtained from Commodity Credit Corporation, Washington, D. C. The forms are identified, and no reprints or substitutes may be used.

All blanks in both the note and loan agreement must be filled in with ink, indelible pencil, or typewriter in the manner indicated therein, and no documents containing additions, alterations, or erasures will be accepted by Commodity Credit Corporation. Only the white copy of the note and loan agreement marked "original" is to be executed; the colored copy marked "duplicate" is to be retained by the producer.*†

202.9 Direct loans. It is contemplated that producers will ordinarily arrange for loans through local banks or other lending agencies, which, in turn, may sell the eligible paper evidencing such loans to Commodity Credit Corporation. Arrangements, however, have been made for making direct loans to producers on or before October 31, 1938. In the case of direct loans the notes must be made payable to Commodity Credit Corporation and must be tendered to the Loan Agency of the Reconstruction Finance Corporation serving the district in which the wool or mohair is stored, accompanied by a Producer's Letter of Transmittal (1938 CCC Wool Form E), in duplicate, postmarked not later than midnight of October 31, 1938, if tendered by mail. Upon delivery of all necessary documents properly executed and upon their approval, payment will be made in accordance with the directions of the producer contained in said 1938 CCC Wool Form E. When the Letter of Transmittal and documents are presented by the producer in person, the certificate printed at the bottom of the letter need not be executed, provided the producer can furnish evidence satisfactory to the Loan Agency as to his identity.**

202.10 Wool pools. Producers may join with other producers to form informal wool pools for the purpose of obtaining loans from Commodity Credit Corporation. In this connection assistance may be obtained from county extension agents or other governmental representatives. The representative of such informal pools must obtain authority from the producers for the pooling of the wool or mohair and the pledging thereof to Commodity Credit Corporation on a Producer's Authority to Pool, 1938 CCC Wool Form G. Under this arrangement the representative will execute the note evidencing the advance and pledging the wool or mohair without further liability on the part of such representative to Commodity Credit Corporation, except in the case of fraud or misrepresentation. Banks or agricultural or livestock credit corporations may act as representatives of wool pools. Such notes may be made payable to Commodity Credit Corporation and submitted immediately with a Lending Agency's Letter of Transmittal (1938 CCC Wool Form F) in which case no allowance for interest will be made by Commodity Credit

*For statutory citation, see note to § 202.1.

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Corporation. However, if the representative of the wool pool has executed a Contract to Purchase (1938 CCC Wool Form H), allowance will be made by Commodity Credit Corporation for the interest from the date of the note.**

202.11 Obligation of lending agencies. Commodity Credit Corporation will purchase eligible paper as above defined only from lending agencies which have executed and delivered to the Loan Agency of the Reconstruction Finance Corporation serving the district in which the pledged wool or mohair is stored, a Contract to Purchase (1938 CCC Wool Form H) obtainable only from Loan Agencies. Such eligible paper must be tendered to the proper Loan Agency for purchase prior to February 1, 1939. The purchase price for such eligible paper will be the face amount of the notes, plus interest thereon at the rate of two and one-half percent (212%) per annum from the respective dates of such notes to the date of purchase. In this connection the representative of a wool pool or pools may carry under the terms of the Contract to Purchase, the notes which it has executed. Under the terms of the Contract to Purchase, lending agencies are required to report on 1938 CCC Wool Form J all payments or collections on notes held by them, and to remit promptly to Commodity Credit Corporation, Washington, D. C., an amount equivalent to 12 percent per annum interest on the principal amount collected from the respective dates of the notes to the date of payment. Notes on 1938 CCC Wool Form A, B, or C may be endorsed without recourse by lending agencies tendering same.

Care should be exercised by the lending agency to determine the genuineness of the signatures to such notes and loan agreements, and that the warehouse receipts are genuine and represent merchantable wool or mohair in existence. No provision is made for any deduction from the loan proceeds as a charge for handling the loan documents. Lending agencies must complete the "Advice of Loan" slip appended to the loan agreement, detach, and mail same to Commodity Credit Corporation, Washington, D. C., at the time such notes are executed. The Advice of Loan and also the Schedule of Repayments (1938 CCC Wool Form J) must be filled in with ink, indelible pencil, or typewriter.*+

202.12 Listing of lienholders. All wool or mohair tendered to Commodity Credit Corporation as security to notes on 1938 CCC Wool Form A must be free and clear of all liens except in favor of the lienholders listed in the space provided therefor in the Loan Agreement. The names of the holders of all existing liens on the pledged wool or mohair (but not warehousemen) must be listed in the space provided therefor in paragraph 2 of the loan agreement. A misrepresentation as to prior liens, or otherwise, will render the producer personally liable under the terms of the loan agreement (1938 CCC Wool Form A) and subject to criminal prosecution under the provisions of section 16 (a) of the Reconstruction Finance Corporation Act, as amended (47 Stat. 11; 15 U.S.C. 616 (a)), which section is printed at the end of the loan agreement. The waiver and consent to the pledge of the wool or mohair and the payment of the proceeds of the loan and the proceeds of the sale of the wool or mo

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*For statutory citation, see note to § 202.1.

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