[Federal Register Volume 60, Number 95 (Wednesday, May 17, 1995)]
[Rules and Regulations]
[Pages 26350-26351]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12154]
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DEPARTMENT OF AGRICULTURE
Rural Housing and Community Development Service; Rural Business and
Cooperative Development Service; Rural Utilities Service; Consolidated
Farm Service Agency
7 CFR Part 1980
RIN 0575-AB84
Business and Industrial Loan Program
AGENCIES: Rural Housing and Community Development Service, Rural
Business and Cooperative Development Service, Rural Utilities Service,
and Consolidated Farm Service Agency, USDA.
ACTION: Final rule.
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SUMMARY: The Rural Business and Cooperative Development Service
(RBCDS), (pursuant to section 234 of the Department of Agriculture
Reorganization Act of 1994 (Pub. L. 103-354, October 13, 1994) and the
Secretary's decision to implement such Authority) is the successor to
the Rural Development Administration (RDA), which is the successor to
the Farmers Home Administration (FmHA). RBCDS amends the Business and
Industry Loan Servicing regulations to clarify the procedure for
categorizing and classifying loans according to payment frequency
criteria. The intended effect is to clarify procedures for classifying
and categorizing loan payment history.
EFFECTIVE DATE: May 17, 1995.
FOR FURTHER INFORMATION CONTACT: Kenneth E. Hennings, Senior Loan
Specialist, Business and Industry Division, RBCDS (formerly RDA), U.S.
Department of Agriculture, Room 6337, South Agriculture Building, 14th
Street and Independence Avenue, SW., Washington, DC, 20250-0700,
Telephone: (202) 690-3809.
SUPPLEMENTARY INFORMATION:
Classification
This rule has been determined to be not-significant for purposes of
Executive Order 12866 and therefore has not been reviewed by the Office
of Management and Budget (OMB).
Programs Affected
The Catalog of Federal Domestic Assistance program impacted by this
action is: 10.768, Business and Industrial Loans.
Intergovernmental Review
The Business and Industrial Loan programs are subject to the
provisions of Executive Order 12372 which requires intergovernmental
consultation with State and local officials. RBCDS has conducted
intergovernmental consultation in the manner delineated in FmHA
Instruction 1940-J, ``Intergovernmental Review of Farmers Home
Administration Programs and Activities.''
Civil Justice Reform
This final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. (In accordance with this rule:) (1) All state and
local laws and regulations that are in conflict with this rule will be
preempted; (2) no retroactive effect will be given to this rule; and
(3) administrative proceedings in accordance with the regulations of
the agency at 7 C.F.R. 1900-B or those regulations published by the
Department of Agriculture to implement the provisions of the National
Appeals Division as mandated by the Department of Agriculture
Reorganization Act of 1994 must be exhausted before bringing suit in
court challenging action taken under this rule unless those regulations
specifically allow bringing suit at an earlier time.
Paperwork Reduction Act
The information collection requirements contained in this
regulation have been approved by the Office of Management and Budget
(OMB) under the provisions of 44 U.S.C. Chapter 35 and have been
assigned OMB control number 0575-0029 in accordance with the Paperwork
Reduction Act of 1980. This rule does not revise or impose any new
information collection or recordkeeping requirement from those approved
by OMB.
Environmental Impact Statement
This document has been reviewed in accordance with 7 CFR Part 1940,
subpart G, ``Environmental Program.'' RBCDS has determined that this
action does not constitute a major Federal action significantly
affecting the quality of the human environment, and in accordance with
the National Environmental Policy Act of 1969, Public Law 91-190, an
Environmental Impact Statement is not required.
Background
The regulations for Business and Industrial guaranteed loans
require the lender to classify each loan in accordance with specific
criteria set out in the regulations. It has been discovered that loans
that are in compliance with requirements and have been current for more
than 23 months but still have an outstanding balance of more than two-
thirds of the original loan amount do not fit the criteria provided for
in any classification. This action is to revise the criteria so that
those loans will be included in the current non-problem classification.
Comments
On June 24, 1994, FmHA published a proposed rule with a comment
period ending on August 23, 1994 in the Federal Register (59 FR 32660)
to revise the loan classification criteria so that those loans that
have been current for more than 23 months but still have an outstanding
balance of more than two-thirds of the original loan amount will be
included in the current non-problem classification. There were no
comments on the proposed rule.
List of Subjects in 7 CFR Part 1980
Loan programs--Business and industry, Rural development assistance,
Rural areas.
Accordingly, part 1980 of chapter XVIII, title 7 of the Code of
Federal Regulations is amended as follows:
PART 1980--GENERAL
1. The authority citation for part 1980 continues to read as
follows:
Authority: 7 U.S.C. 1989; 42 U.S.C. 1480; 7 U.S.C. 301; 7 CFR
2.23; 7 CFR 2.70.
Subpart E--Business and Industrial Loan Program
2. Section 1980.469 is amended by revising paragraph (c)(3) to read
as follows:
Sec. 1980.469 Loan servicing.
* * * * *
(c) * * * [[Page 26351]]
(3) Current Non-problem Classification--Those loans that are
current and are in compliance with all loan conditions and B&I
regulations but do not meet all the criteria for a Seasoned Loan
classification. All loans not classified as Seasoned or Current Non-
problem will be reported on the quarterly status report with
documentation of the details of the reason(s) for the assigned
classification.
* * * * *
Dated: March 28, 1995.
Michael V. Dunn,
Acting Under Secretary, Rural Economic and Community Development.
[FR Doc. 95-12154 Filed 5-16-95; 8:45 am]
BILLING CODE 3410-32-U
