Article 2. Adjustments and Variations
RULE S-9: Meal and Hull Settlements.
Sec. 1. No claim for deficiency in protein or combined protein and fat shall be made by the buyer unless deficiency shall exceed 1/2 unit of protein, or 1/2 unit of combined protein and fat, if sold that way. If a contract carries a separate fat guarantee no claim for fat deficiency shall be made unless the deficiency exceeds two-tenths of one per cent.
Sec. 2. Meal, sized cake, pellets, screening or flakes, not coming up in analysis to contract grade, shall be a good delivery if within 1-1/4 unit of the protein, or 1-1/4 units of combined protein and fat, if sold that way, specified in the contract. Settlement price shall be reduced in such proportion as the deficiency bears to the guarantee. If a contract carries a separate fat guarantee, the product shall be a good delivery, with respect to the fat content if within five-tenths of one percent of the fat specified in the contract. Settlement price shall be reduced by the three-tenths of one per cent of fat deficiency.
Sec 3. Reductions in price made according to #1 and 2, above shall be based upon the contract price minus cheapest published tariff freight in cases of c.a.f. or delivered contracts, and on contract price in cases of f.o.b. or basis f.o.b. contracts.
Sec. 4. Unless otherwise agreed, other terms of the contract shall be in accordance with the applicable provisions of the Trading Rules of the National Cottonseed Products Association.
Effective August 1, 2013
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These trading rules are provided courtesy of the National Cottonseed Products Association, Inc.