certificates in substitution for prior certificates-$2.10 per bale.

(h) Supervision, by a supervisor of cotton inspection, of transfers of cotton to a different warehouse at the same delivery point, including issuance of new cotton class certificates in substitution for prior certificates-$1.45 per bale.

[46 FR 48111, Oct. 1, 1981]

§ 27.81 Fees; certificates.

For each new certificate issued in substitution for a prior certificate at the request of the holder thereof, for his business convenience, or when made necessary by the transfer of the cotton under the supervision of an exchange inspection agency as provided in § 27.73, the person making the request shall pay a fee of 45 cents for each certificate issued.

[46 FR 48112, Oct. 1, 1981]

§ 27.83 No fees for certain certificates.

No fee shall be collected for a new cotton class certificate issued in lieu of a prior certificate solely for the purpose of correcting clerical errors therein or for the purpose of substituting a new form applicable to outstanding certificates, or without an application therefor.

§ 27.85 Fees; withdrawn requests or applications.

When the request for classification, or the application for review or classification, of any cotton or the request for Micronaire determination for any cotton shall be withdrawn after the service requested has been started pursuant to such request or application, the person making such request or application shall pay the fee prescribed by § 27.80 as to any service completed prior to such withdrawal.

§ 27.87 Fees; classification and Micronaire determination information.

Whenever the person who requests the classification of, or Micronaire determination for, any cotton, or the person on whose behalf such request is made, also requests the transmission by telegraph or telephone of information concerning such classification or Micronaire determination, the person

making the request for such classification or determination shall pay, in addition to the applicable costs prescribed in this subpart, the cost of tolls incurred in such transmission.

§ 27.89 Expenses: inspection; sampling.

The expense of inspection and sampling, the preparation of the samples and the delivery of such samples in accordance with § 27.24, shall be borne by the party requesting the classification of the cotton involved. When a review of classification or a Micronaire determination is requested and samples of the cotton involved are not in possession of a board of cotton examiners, the expense of inspection, sampling, preparation of samples, and delivery of the samples to the board of cotton examiners shall be borne by the party requesting the service.

§ 27.90 Bills for payment of fees and expenses.

The Cotton Division shall deliver bills to all persons from whom payment for fees or expenses on account of services under this subpart shall be due. Such bills shall be rendered as soon as practicable after the last day of each month for the amounts due and unpaid on such day. When necessary, in the discretion of the chairman of the board or the Director, any bill may be rendered at an earlier date for any fees and expenses then due by the person to whom such bill shall be rendered. Payment of any such bill shall be made as soon as possible after the rendition thereof, but in any event not later than 2 weeks after such rendition.

§ 27.92 Method of payment; advance deposit.

Any payment or advance deposit under this subpart shall be by check, draft, or money order, payable to the order of "Agricultural Marketing Service, USDA," and may not be made in cash except in cases where the total payment or deposit does not exceed $1.

SPOT MARKETS

§ 27.93 Bona fide spot markets.

The following markets have been determined, after investigation, and are hereby designated to be bona fide spot markets within the meaning of the act:

Augusta, Ga., Dallas, Tex., Fresno, Calif., Greenville, S.C., Greenwood, Miss., Lubbock, Tex., Memphis, Tenn., Montgomery, Ala., Phoenix, Ariz.

(90 Stat. 1841-1846; (7 U.S.C. 15b))

[39 FR 27115, July 25, 1974 as amended at 45 FR 762, Jan. 3, 1980]

§ 27.94 Spot markets for contract settlement purposes.

The following are designated as spot markets for the purpose of determining as provided in paragraph 15b(f)(3) of the act, the differences above or below the contract price which the receiver shall pay for grades other than the basis grade tendered or delivered in settlement of a basis grade contract:

(a) For cotton delivered in settlement of any No. 1 contract of the New York Cotton Exchange or any contract of the New Orleans Commodity Exchange:

Dallas, Tex., Greenville, S.C., Lubbock, Tex., Memphis, Tenn., Montgomery, Ala.

(b) For cotton delivered in settlement of any No. 2 contract of the New York Cotton Exchange:

Dallas, Tex., Greenville, S.C., Greenwood, Miss., Memphis, Tenn., Phoenix, Ariz. (90 Stat. 1841-1846; (7 U.S.C. 15b))

[33 FR 9285, June 25, 1968, as amended at 42 FR 40677, Aug. 11, 1977; 46 FR 51363, Oct. 20, 1981]

PRICE QUOTATIONS AND DIFFERENCES

§ 27.95 Spot markets to conform to act and regulations.

Every bona fide spot market shall, as a condition of its designation and of the retention thereof for the purposes of the act, conform to subsection 15b(d) and paragraph 15b(f)(3) of the act and the requirements of §§ 27.9627.102.

(90 Stat. 1841-1846; (7 U.S.C. 15b)) [42 FR 40677, Aug. 11, 1977]

§ 27.96 Quotations in bona fide spot markets.

The price or value of Strict Low Middling 116 inches cotton and the differences between the price or value of Strict Low Middling 16 inches cotton and of other grades and staple lengths of cotton quoted in each bona fide spot market shall be based solely upon the official cotton standards of the United States and shall be the actual commercial price or value and differences established by the sale of spot cotton in such bona fide spot market. Such price or value and differences shall be determined as provided in said sections of the act and §§ 27.9627.102 of this chapter.

[38 FR 10446, April 27, 1973]

§ 27.97 Quotations committees: Establishment; duties.

There shall be established and maintained in each bona fide spot market a competent quotation committee. The organization of each committee and its personnel shall be subject to the approval of the Director. Any member of any committee who, or any committee which, for good cause is disapproved by the Director shall, after due notice, be replaced by another member or another committee acceptable to the Director. The duties of the quotation committee in each market shall be as follows:

(a) The committee shall impartially and carefully ascertain on each business day the price or value of Strict Low Middling 116 inches cotton and the differences between the price or value of Strict Low Middling 116 inches cotton and of other grades and

90-007 0-82--28

staple lengths of cotton as requested by the Cotton Division. The committee, or a person authorized to act for it, shall obtain information on prices and other terms of sales, including grades and staple lengths, in sufficient detail to enable the committee to perform its duties accurately. The committee shall also carefully consider information presented by representatives of the Cotton Division. The committee, or a person authorized to act for it, shall obtain complete information not later than the close of business on each business day as to the volume of all sales of spot cotton since the close of the preceding day. The committee shall cause its action and findings to be communicated daily to the Cotton Division. Failure by the committee to quote prices which represent actual commercial values of spot cotton in the market shall constitute good cause for disapproval of the committee, or any member of the committee, by the Director.

(b) The committee shall assemble in a scheduled meeting not less than twice each week. The committee shall also meet upon request of a representative of the Cotton Division.

(c) The committee shall provide itself with, or have ready access to, a valid set of the practical forms of the official cotton standards of the United States for upland cotton.

(d) The committee shall make available to a representative of the Cotton Division, upon request, all records of information used by the committee in ascertaining the prices or values of cotton. The samples of the cotton involved in any transaction used by the committee in ascertaining prices shall also be available for examination by a representative of the Cotton Division, as long as such samples remain in the possession of any party to the transaction in the market.

[26 FR 9333, Oct. 4, 1961, as amended at 38 FR 10446, Apr. 27, 1973; 39 FR 34019, Sept. 23, 1974]

§ 27.98 Responsibilities and duties of the Cotton Division.

The Cotton Division is responsible for the accuracy of price quotations in each bona fide spot market. In carrying out this responsibility the Cotton

Division will perform the following duties and functions:

(a) The Cotton Division will assign an employee in each market to collect, analyze, and present periodically to the quotation committee pertinent information on the prices and values of spot cotton in the market to supplement information collected and available to the committee. The employee will attend each scheduled meeting of the committee and present his findings and recommendations on quotations.

(b) The Cotton Division will publish daily the price quotations for each bona fide spot market.

(c) The Cotton Division will, in the absence of an approved quotations committee in a bona fide spot market, ascertain and publish the quotations for that market.

[26 FR 9333, Oct. 4, 1961]

§ 27.99 Value of grade where no sale; determination.

Whenever no sale of a particular grade of cotton shall have been made on a given day in a particular bona fide spot market, the value of such grade in that market on that day, which shall be used in calculating the commercial differences to be applied, pursuant to paragraph 15b(f)(3) of the act, in the settlement of a basis grade contract, shall be determined in accordance with § 27.100.

(90 Stat. 1841-1846; (7 U.S.C. 15b)) [42 FR 40677, Aug. 11, 1977]

§ 27.100 Values of grades.

(a) If on such given day there shall have been in such market both a sale of any higher grade and a sale of any lower grade, the average of the declines, or advances, or decline and advance, as the case may be, of the next higher grade and the next lower grade so sold shall be deducted from, or added to, as the case may be, the value, on the last preceding business day, of the grade the value of which on such given day is sought to be ascertained.

(b) If on such given day there shall have been in such market a sale of either a higher or a lower grade, but

not sales of both, the decline or advance of the next higher or the next lower grade so sold shall be deducted from, or added to, as the case may be, the value on the last preceding business day of the grade the value of which on such given day is sought to be ascertained.

(c) If on such given day there shall have been in such market no sale of spot cotton of any grade, the value of each grade shall be deemed to be the same as its value therein on the last preceding business day, unless in the meantime there shall have been bona fide bids and offers, or sales of hedged cotton, or other sales of cotton, or changes in prices of futures contracts made subject to the act, which in the usual course of business would clearly establish a rise or fall in the value of spot cotton in such market, in which case such rise or fall may be calculated and added to or deducted from the value on the preceding business day of cotton of all grades affected thereby.

staple lengths of cotton as requested by the Cotton Division. The committee, or a person authorized to act for it, shall obtain information on prices and other terms of sales, including grades and staple lengths, in sufficient detail to enable the committee to perform its duties accurately. The committee shall also carefully consider information presented by representatives of the Cotton Division. The committee, or a person authorized to act for it, shall obtain complete information not later than the close of business on each business day as to the volume of all sales of spot cotton since the close of the preceding day. The committee shall cause its action and findings to be communicated daily to the Cotton Division. Failure by the committee to quote prices which represent actual commercial values of spot cotton in the market shall constitute good cause for disapproval of the committee, or any member of the committee, by the Director.

(b) The committee shall assemble in a scheduled meeting not less than twice each week. The committee shall also meet upon request of a representative of the Cotton Division.

(c) The committee shall provide itself with, or have ready access to, a valid set of the practical forms of the official cotton standards of the United States for upland cotton.

(d) The committee shall make available to a representative of the Cotton Division, upon request, all records of information used by the committee in ascertaining the prices or values of cotton. The samples of the cotton involved in any transaction used by the committee in ascertaining prices shall also be available for examination by a representative of the Cotton Division, as long as such samples remain in the possession of any party to the transaction in the market.

[26 FR 9333, Oct. 4, 1961, as amended at 38 FR 10446, Apr. 27, 1973; 39 FR 34019, Sept. 23, 1974]

§ 27.98 Responsibilities and duties of the Cotton Division.

The Cotton Division is responsible for the accuracy of price quotations in each bona fide spot market. In carrying out this responsibility the Cotton

Division will perform the following duties and functions:

(a) The Cotton Division will assign an employee in each market to collect, analyze, and present periodically to the quotation committee pertinent information on the prices and values of spot cotton in the market to supplement information collected and available to the committee. The employee will attend each scheduled meeting of the committee and present his findings and recommendations on quotations.

(b) The Cotton Division will publish daily the price quotations for each bona fide spot market.

(c) The Cotton Division will, in the absence of an approved quotations committee in a bona fide spot market, ascertain and publish the quotations for that market.

[26 FR 9333, Oct. 4, 1961]

§ 27.99 Value of grade where no sale; determination.

Whenever no sale of a particular grade of cotton shall have been made on a given day in a particular bona fide spot market, the value of such grade in that market on that day, which shall be used in calculating the commercial differences to be applied, pursuant to paragraph 15b(f)(3) of the act, in the settlement of a basis grade contract, shall be determined in accordance with § 27.100.

(90 Stat. 1841-1846; (7 U.S.C. 15b)) [42 FR 40677, Aug. 11, 1977]

§ 27.100 Values of grades.

(a) If on such given day there shall have been in such market both a sale of any higher grade and a sale of any lower grade, the average of the declines, or advances, or decline and advance, as the case may be, of the next higher grade and the next lower grade so sold shall be deducted from, or added to, as the case may be, the value, on the last preceding business day, of the grade the value of which on such given day is sought to be ascertained.

(b) If on such given day there shall have been in such market a sale of either a higher or a lower grade, but