[Federal Register Volume 60, Number 104 (Wednesday, May 31, 1995)]
[Rules and Regulations]
[Pages 28319-28321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13243]
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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 Parts 1955, 1962, and 1965
Administrative Changes to Provide Authority to Approve Releases
of Liability in Connection with Voluntary Liquidations
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 Consolidated Farm Service Agency (CFSA) is the successor
to the Farmers Home Administration pursuant to Section 226 of the
Department of Agriculture Reorganization Act of 1994 (Pub. L. 103-354,
October 13, 1994). The CFSA amends its Property Management, Chattel
Property, and Real Property regulations to conform with changes made to
its debt settlement regulations in April 1993. These conforming changes
are made to give State Directors release of liability authority for
borrowers whose total indebtness is less than one million dollars. The
intended effect is to expedite the processing of requests from
borrowers who are unable to repay all of their CFSA debts.
EFFECTIVE DATE: May 31, 1995.
FOR FURTHER INFORMATION CONTACT: Edward R. Yaxley, Jr., Senior Loan
Officer, Farm Credit Programs Loan Servicing and Property Management
Division, Consolidated Farm Service Agency, USDA, room 5449, South
Agriculture Building, 14th and Independence Avenue SW.,
[[Page 28320]] Washington, DC 20250, telephone (202) 720-4572.
SUPPLEMENTARY INFORMATION:
Classification
This action is not subject to the provisions of Executive Order
12866 because it involves only internal agency management and it has no
impact on CFSA borrowers or other members of the public. This action is
not published for notice and comment under the Administrative Procedure
Act since the changes only involve internal processing of documents by
CFSA employees which will expedite the administrative review process
for releases of liability, permitting more timely debt relief to CFSA
borrowers, and consequently reducing the Agency's portfolio of inactive
uncollectible accounts. It is published so that CFSA borrowers will be
aware of the authority of State Directors to execute releases from
liability for certain debts.
Paperwork Reduction Act
The information collection requirements contained in these
regulations 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 numbers 057-0109 and 057-0086. This final rule
does not revise or impose any new information collection requirement
from those previously approved by OMB.
Background
The CFSA amends its Property Management, Chattel Property, and Real
Property regulations to conform with changes made to its debt
settlement regulations on April 21, 1993 (58 FR 21344). These
conforming changes are made to give State Directors release of
liability authority for borrowers whose total indebtness (including
principal, interest and other charges) is less than one million
dollars. This action only involves internal processing of documents by
CFSA employees which will expedite the administrative review process
for releases of liability, permitting more timely debt relief to CFSA
borrowers, and consequently reducing the Agency's portfolio of inactive
uncollectible accounts. It is helpful to CFSA borrowers to know the
authority levels for releases of liability by State Directors. The
procedure for the release in all cases is set forth in 7 CFR part 1956,
subpart B.
CFSA amends subpart A of part 1955:
(1) Section 1955.10(f)(2) to give State Directors authority to
accept and process offers to convey real property when the unsatisfied
CFSA indebtness is less than $1,000,000.
(2) Section 1955.20(b)(2) to give State Directors authority to
accept and process offers to convey chattel property when the
unsatisfied CFSA indebtness is less than $1,000,000.
CFSA amends subpart A of part 1962:
(1) Section 1962.34(h) to give State Directors authority to approve
the transfer and assumption of CFSA accounts to eligible and ineligible
transferees and release the transferors of liability when the CFSA debt
secured by chattels minus their market value is less than $1,000,000.
CFSA amends subpart A of part 1965:
(1) Section 1965.26(f)(5)(ii) to give State Directors authority to
approve release of liability for borrowers whose outstanding CFSA debt
after a cash sale of real property is less than $1,000,000.
(2) Section 1965.27(f) to give State Directors authority to approve
the transfer and assumption of CFSA accounts to eligible and ineligible
transferees and release the transferors of liability when the CFSA debt
secured by real property minus its market value is less than
$1,000,000.
Programs Affected
The programs are listed in the Catalog of Federal Domestic
Assistance (CFDA) under:
10.404 Emergency Loans
10.406 Farm Operating Loans
10.407 Farm Ownership Loans
10.410 Low Income Housing Loans
10.411 Rural Housing Site Loans
10.415 Rural Rental Housing Loans
10.416 Soil and Water Loans
10.417 Very Low-Income Housing Repair Loans and Grants
Environmental Impact Statement
This document has been reviewed in accordance with 7 CFR part 1940,
subpart G, ``Environmental Program.'' CFSA 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, Pub. L. 91-190, an
Environmental Impact Statement is not required.
List of Subjects
7 CFR Part 1955
Foreclosure, Government acquired property.
7 CFR Part 1962
Crops, Government property, Livestock, Loan programs--Agriculture,
Rural areas.
7 CFR Part 1965
Foreclosure, Loan programs--Agriculture, Rural areas.
Therefore, chapter XVIII, title 7, Code of Federal Regulations is
amended as follows:
PART 1955--PROPERTY MANAGEMENT
1. The authority citation for part 1955 continues to read as
follows:
Authority: 7 U.S.C. 1989; 42 U.S.C. 1480; 5 U.S.C. 301; 7 CFR
2.23 and 2.70.
Subpart A--Liquidation of Loans Secured by Real Estate and
Acquisition of Real and Chattel Property
2. Section 1955.10 is amended by revising the third and the last
sentences of paragraph (f)(2)(ii) to read as follows:
Sec. 1955.10 Voluntary conveyance of real property by the borrower to
the Government.
* * * * *
(f) * * *
(2) * * *
(ii) * * * When the Agency debt less the market value and prior
liens is $1 million or more (including principal, interest and other
charges), release of liability must be approved by the Administrator or
designee; otherwise, the State Director must approve the release of
liability. All cases requiring a release of liability will be submitted
for review in accordance with exhibit A of subpart B of part 1956 of
this chapter (available in any CFSA office).
* * * * *
3. Section 1955.20 is amended by revising the third sentence of
paragraph (b)(2) to read as follows:
Sec. 1955.20 Acquisition of chattel property.
* * * * *
(b) * * *
(2) * * * When the Agency debt less the market value and prior
liens is $1 million or more (including principal, interest and other
charges), release of liability must be approved by the Administrator or
designee; otherwise, the State Director must approve the release of
liability. * * *
* * * * *
PART 1962--PERSONAL PROPERTY
4. The authority citation for part 1962 continues to read as
follows:
Authority: 7 U.S.C. 1989; 42 U.S.C. 1480; 5 U.S.C. 301; 7 CFR
2.23; 7 CFR 2.70. [[Page 28321]]
Subpart A--Servicing and Liquidation of Chattel Security
5. Section 1962.34 is amended by revising the second sentence of
paragraph (h) to read as follows:
Sec. 1962.34 Transfer of chattel security and EO property and
assumption of debts.
* * * * *
(h) * * * When the Agency debt less the market value and prior
liens is $1 million or more (including principal, interest and other
charges), release of liability must be approved by the Administrator or
designee; otherwise, the State Director must approve the release of
liability. * * *
PART 1965--REAL PROPERTY
6. The authority citation for part 1965 continues to read as
follows:
Authority: 7 U.S.C. 1989; 42 U.S.C. 1480; 5 U.S.C. 301; 7 CFR
2.23; 7 CFR 2.70.
Subpart A--Servicing of Real Estate Security for Farmer Program
Loans and Certain Note-Only Cases
7. Section 1965.26 is amended by revising the first sentence of
paragraph (f)(5)(ii) to read as follows:
Sec. 1965.26 Liquidation action.
* * * * *
(f) * * *
(5) * * *
(ii) When the Agency debt less the market value and prior liens is
$1 million or more (including principal, interest and other charges),
release of liability must be approved by the Administrator or designee;
otherwise, the State Director must approve the release of liability. *
* *
* * * * *
8. Section 1965.27 is amended by revising the second sentence of
paragraph (f) to read as follows:
Sec. 1965.27 Transfer of real estate security.
* * * * *
(f) * * * When the Agency debt less the market value and prior
liens is $1 million or more (including principal, interest and other
charges), release of liability must be approved by the Administrator or
designee; otherwise, the State Director must approve the release of
liability. * * *
* * * * *
Dated: May 3, 1995.
Eugene Moos,
Under Secretary, Farm and Foreign Agricultural Services.
Dated: May 3, 1995.
Michael V. Dunn,
Acting Under Secretary, Rural Economic and Community Development.
[FR Doc. 95-13243 Filed 5-30-95; 8:45 am]
BILLING CODE 3410-07-V
