BECOMING AN LSA

APPLICATION PROCESS

REFERENCE

FSA Handbook 22-CN (Rev. 2) Paragraph 12.

REQUIRED DOCUMENTATION

2 Signed CCC-912’s. Audited financial statement less than 1 year

old on the date submitted.

(Financial statement shall include accompanying notes, schedules, or exhibits, certified by a certified public accountant as fairly representing the entities financial condition).

REQUIRED DOCUMENTATION, Continued

• Listing of employees involved in CCC program activities, including current directors, officers, and primary owners.

Definition: Primary owners are those entities owning more than 10 percent of the LSA.

REQUIRED DOCUMENTATION, Continued

• Copy of any applicable incorporating or partnership documents.

• Contact person.

Name Address

Telephone number Fax number

E-mail address

SOFTWARE PROVIDER INFORMATION

Name Address Telephone Number FAX Number E-mail address

Approval Process LSA completes and mails

application documents to PSD. PSD provides a package of

instructions to designate a Cotton Commercial Bank (CCB).

LSA nominates a bank to serve as its CCB and forwards the nomination to Controller, CCC.

Approval Process, Continued

• CCC grants approval to act as an LSA.• LSA has its CCB execute a contract with

CCC.• LSA provides CCB and PSD a list of all

employees authorized to sign documents for LSA and provide sample signatures of authorized employees.

Loan Servicing Agents

(LSA)

ANNUAL RECERTIFICATION

REFERENCE

FSA Handbook 22-CN (Rev. 2) Paragraph 13.

LSA must annually obtain continued approval to act as an approved Loan Servicing Agent.

“Why Recertify”

The purpose of requiring LSA’s to annually recertify is to confirm that program requirements and procedures are being followed, which includes:

• Financial Security• Bale Limit• Forms• Letter of Credit Confirmation

RECERTIFICATION DUE DATE

LSA recertifications are based on the LSA’s fiscal year.

Recertification documents must be submitted to the Director, PSD no later than 4 months after the end of the LSA’s fiscal year.

REQUIRED RECERTIFICATION DOCUMENTATION

Completed CCC-846-1A

Recertification of Status for Approved Loan Servicing Agents (LSA’s) or Designated Marketing Associations (DMA’s) (6-23-05)

Form Example and Instructions:22-CN (Rev. 2), subparagraph 13D and

E.

     

Audited Financial Statement

Less than one year old. Including accompanying note,

schedules, or exhibits. Certified by a certified public

accountant. Fairly represents the entities financial

condition. If financial security is parent company

guarantee, submit financial statement for parent company also.

Employee ListingCCC-846-1A

Listing of all employees involved in CCC program activities.

LSA’s FSA & CCC FormsLSA’s must annually submit copies of all FSA and CCC forms whether they are created by the LSA or if the LSA is currently using the FSA or CCC version of the form.

Reminder 1: Computer generated forms created and utilized by the LSA must be approved according to 22-CN (Rev.2) paragraph 17.

Reminder 2: Each time an FSA or CCC form is revised, the existing approved computer generated LSA form derived from it must be resubmitted for approval according to paragraph 17.

SOFTWARE PROVIDER INFORMATIONLSA’s must annually submit the following information identifying their current LSA software provider.

Name Address Telephone Number FAX Number E-mail address

Note: This information is annually required whether prior year information has changed or not. PSD may request additional information concerning the software provider.

Bale Limit

CCC requires LSA’s to have $10.00 of security for each bale of cotton. The bale limit is initially established by dividing the LSA’s current net worth by $10.00.

Each LSA’s financial security is annually reviewed.

Submitting Documentation

Recertification documentation shall be overnight mailed to:

United States Department of Agriculture

Farm Service AgencyDirector, Price Support Division1400 Independence Avenue, SW Room

4095-SStop 0581Washington, DC 20250-0581

RECERTIFICATION APPROVAL

PSD will notify LSA of continued approval, suspension, or termination of approval to continue to act as an LSA.

If an LSA is suspended or terminated, PSD will notify in writing and include an explanation.