CPSK shall take complete responsibility for fulfilling duties of packing and storage according to category, and shall implement transactions of distributing and taking over public bags based on the instruction of the Branch.

For CPSK performing public stock transactions, they should confirm and register on the AFA information network system the quantity of public stock paddy they have collected, milled/processed, distributed, and kept.
The public stock account books, certificates, and other related records should be kept for at least five years. The Branch has the right to audit the above information from time to time without refusal, circumvention, or interference.

The Branch shall make the payment for public stock transactions to CPSK according to contract. Any shortage of public stock or payment for transactions shall be reduced directly by the Branch according to the payment items listed in the contract.

COA, AFA, and the Branch shall randomly assign representatives to inspect the quantity, quality, sanitation, storage management , and environment of public stock repository. The owner or the representative of CPSK shall provide necessary tools to cooperate with the inspection, and is not allowed to refuse, avoid or interfere.

Unless exempted from providing any guarantee in the contract, CPSK should provide more than two profit-seeking enterprises or persons in good financial situation with good credit records as guarantors. CPSK should also provide additional property guarantees or be guaranteed by a bank in accordance with the contract.
For farmers’ associations to perform public stock transactions, they must have the board chairman and general manager as their joint guarantors. Those providing financial guarantees or having the bank as the guarantor in accordance with the aforementioned provision are exempted from providing joint guarantors.

CPSK should cooperate with the Branch by completing identity verification of the join guarantors and the property guarantee within two months after signing the contract. Except for farmers’ associations and those already providing sufficient property guarantee or bank guarantors, identity verification should be performed once every year before the end of April.
If there is any change in the joint guarantors, the joint guarantee contract should be updated and identity verification should be performed once it is approved by the Branch.

The amount of property guarantee provided by CPSK should be assessed and calculated by the Branch according to the quantity of public stock paddy stored by CPSK based on the contract.

The pledge registration or mortgage registration for the property guarantee provided by CPSK shall be completed; the criteria for property guarantee value shall be based on the contract.
The Branch shall refuse and request CPSK for changing property guarantees in the event of any of the following:
1. Jointly-owned buildings or lands;
2. The property guarantees are categorized as a hill, or forestry land, ecological conservation land or land for country safety and protection use.;
3. The trading value is less than current land value or current assessed housing value.
The owner and the owner ’ s spouse, immediate relatives, collateral blood relatives by second degree of kinship should provide more than 50% of property guarantees of contract, provided that CPSK provided property guarantee.

A CPSK found breaching the contract shall be liable for compensation in accordance with the terms and conditions of the contract.
If CPSK’s compensation according to the above-mentioned provision is delayed, it will also pay stock or an equivalent amount of money as punitive damages in accordance with the contract, and the amount of such punitive damages should not exceed 20% of the quantity or dollar amount of the compensation.

If there is shortage of property guarantee provided by CPSK because of impairment or loss of property, the Branch shall inform CPSK to make up the deficiency. If CPSK does not make up the deficiency before the expiration date, the Branch shall reduce or suspend entrusting the transactions carried out by CPSK according to the practical situation.

For CPSK providing public stock transactions breaching the contract or the provisions here, the Branch, after evaluating the situation as well as the contract breaching record, may allow a period for improvement, request for damage compensation, withhold the accrued expenses, reduce regions designated to the CPSK, or suspend part of the commissioned transactions in accordance with the terms and conditions of the contract. If the breaching of the contract is serious, the Branch will terminate the contract.

CPSK is strictly prohibited from exposing or providing the quantity and distribution of rice, and related data of the contract, unless written permission from the Branch is obtained or there are dealing with inspections based on the regulation.

If CPSK’s public stock transaction volume is reduced or suspended, the Branch can suspend the CPSK’s public stock collection.
If CPSK’s food dealer registration is revoked or terminated during the effective term of the contract, the Branch should suspend CPSK’s paddy collection and rice milling/processing transactions, but depending on the business need, the Branch may have CPSK continue its rice storage transactions until all rice in the stock is completely distributed and then terminate the contract.

After terminating the entrusted contract and confirming with the Branch, CPSK may request for returning his or her property guarantees, or cancelling the registration for pledge or mortgage once he or she settles up for rice collections, materials and other various debts.