Page:United States Statutes at Large Volume 53 Part 1.djvu/221

 COTTON FUTURES That middling shall be deemed the basis grade incorporated into the contract if no other basis grade be specified either in the con- tract or in the memorandum evidencing the same. (3) PROVISION FOR DELIVERY OF STANDARD GRADES ONLY. -Provide that the cotton dealt with therein or delivered thereunder shall be of or within the grades for which standards are established by the Secretary of Agriculture except grades prohibited from being delivered on a contract made under this section by the fifth para- graph of this subsection and no other grade or grades. (4) PROVISION FOR SETTLEMENT ON BASIS OF ACTUAL COMMERCIAL DIFFERENCES.-Provide that in case cotton of grade other than the basis grade be tendered or delivered in settlement of such contract, the differences above or below the contract price which the receiver shall pay for such grades other than the basis grade shall be the actual commercial differences, determined as hereinafter provided. (5) PROHIBITION OF DELIVERY OF INFERIOR COTTON.-Provide that cotton that, because of the presence of extraneous matter of any character, or irregularities or defects, is reduced in value below that of low middling, or cotton that is below the grade of low mid- dling, or, if tinged, cotton that is below the grade of strict mid- dling, or, if yellow stained, cotton that is below the grade of good middling, the grades mentioned being of the official cotton stand- ards of the United States, or cotton that is less than seven-eighths of an inch in length of staple, or cotton of perished staple, or of immature staple, or cotton that is "gin cut" or reginned, or cotton that is "repacked" or "false packed" or "mixed packed" or "water packed," shall not be delivered on, under, or in settlement of such contract. (6) PROVISIONS FOR TENDER IN FULL, NOTICE OF DELIVERY DATE, AND CERTIFICATE OF GRADE. -Provide that all tenders of cotton under such contract shall be the full number of bales involved therein, except that such variations of the number of bales may be per- mitted as is necessary to bring the total weight of the cotton tendered within the provisions of the contract as to weight; that, on the fifth business day prior to delivery, the person making the tender shall give to the person receiving the same written notice of the date of delivery, and that, on or prior to the date so fixed for delivery, and in advance of final settlement of the contract, the person making the tender shall furnish to the person receiving the same a written notice or certificate stating the grade of each indi- vidual bale to be delivered and, by means of marks or numbers, identifying each bale with its grade. (7) PROVIsIoN FOR TENDER AND SETTLEMENT IN ACCORDANCE WITr GOVERNMENT CLASSIFICATION.- Provide that all tenders of cotton and settlements therefor under such contract shall be in accordance with the classification thereof made under the regulations of the Secretary of Agriculture by such officer or officers of the Govern- ment as shall be designated for the purpose, and the costs of such classification shall be fixed, assessed, collected, and paid as provided in such regulations. All moneys collected as such costs may be used as a revolving fund for carrying out the purposes of this paragraph. The Secretary of Agriculture is authorized to pre- scribe regulations for carrying out the purposes of this paragraph, and the certificates of the officers of the Government as to the classification of any cotton for the purposes of this paragraph shall be accepted in the courts of the United States in all suits between the parties to such contract, or their privies, as prima facie evidence of the true classification of the cotton involved. (b) INCORPORATION OF CONDITIONS IN CONTRACTS. -T he provisions of the third, fourth, fifth, sixth, and seventh paragraphs of subsection (a) shall be deemed fully incorporated into any such contract if there 211

�