97-15757. RUS Privatization Demonstration Prepayment Program for the State of Alaska

[Federal Register Volume 62, Number 115 (Monday, June 16, 1997)]
[Rules and Regulations]
[Pages 32477-32478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15757]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1786

RIN 0572-AB27


RUS Privatization Demonstration Prepayment Program for the State 
of Alaska

AGENCY: Rural Utilities Service, USDA.

ACTION: Final rule.

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SUMMARY: The 1996 Farm Bill, signed into law on April 4, 1996, repealed 
Section 311 of the Rural Electrification Act of 1936. Section 311 
provided the legal authority for a privatization demonstration program 
for the State of Alaska. Under that demonstration program, electric and 
telecommunications borrowers in the state of Alaska could prepay 
certain RUS loans on favorable terms. Borrowers who prepaid under this 
demonstration program became ineligible for most types of loans from 
RUS after the prepayment. Because the Farm Bill repealed the statutory 
authority, regulations implementing this program have become obsolete. 
Today's rule removes these obsolete regulations.

EFFECTIVE DATE: This rule is effective June 16, 1997.

FOR FURTHER INFORMATION CONTACT: Sue Arnold, Financial Analyst, U.S. 
Department of Agriculture, Rural Utilities Service, Room 2230-S, 1400 
Independence Avenue, SW., Stop 1522, Washington, DC 20250-1522. 
Telephone: [phone]. FAX: [phone]. E-mail: 
[e-mail].

SUPPLEMENTARY INFORMATION: The Rural Utilities Service (RUS) is taking 
this regulatory action as part of an ongoing project to eliminate 
unnecessary regulations and improve those that remain in force. This 
regulatory action has been determined not to be significant for the 
purposes of Executive Order 12866, Regulatory Planning and Review, and, 
therefore has not been reviewed by the Office of Management and Budget 
(OMB).
    The program described by this rule is listed in the Catalog of 
Federal Domestic Assistance Programs under numbers 10.850, Rural 
Electrification Loans and Loan Guarantees, 10.851 Rural Telephone Loans 
and Loan Guarantees, and 10.852, Rural Telephone Bank Loans. This 
catalog is available on a subscription basis from the Superintendent of 
Documents, the United States Government Printing Office, Washington, DC 
20402-9325.

Information Collection and Recordkeeping Requirements

    This rule contains no information collection or recordkeeping 
requirements.

Background

    On October 30, 1986, an Act Making Continuing Appropriations for 
Fiscal Year of 1987 and For Other Purposes (Pub.L. 99-591, 100 Stat. 
3341-333) added a new section 311 (7 U.S.C. 940a) to the Rural 
Electrification Act of 1936, as amended (7 U.S.C. 901 et seq.), (RE 
Act). Section 311 established a privatization demonstration program 
that allowed electric and telecommunications borrowers in the State of 
Alaska to prepay, under favorable terms, certain loans made or 
guaranteed by the Rural Electrification Administration (REA), the 
predecessor to RUS. Borrowers who prepaid under this demonstration 
program were required to prepay all outstanding loans made or 
guaranteed under the RE Act, and, with a few exceptions, such borrowers 
are ineligible for future loans or loan guarantees under the RE Act.
    RUS rules implementing the Privatization Demonstration Program for 
the State of Alaska were issued in 7 CFR 1786 subpart D.
    On April 4, 1996, Section 780 of the Federal Agriculture 
Improvement and Reform Act (Pub.L. 104-127) repealed Section 311. Since 
RUS no longer has the statutory authority for the Privatization 
Demonstration Program for the State of Alaska, today's rule removes the 
now obsolete 7 CFR 1786 subpart D. Prepayment provisions established 
elsewhere in 7 CFR part 1786, and in other RUS regulations are not 
affected by today's amendment.
    Because statutory authority for the Privatization Demonstration 
Program for the State of Alaska has been repealed, no period of public 
comment is needed for this conforming amendment to RUS regulations.

[[Page 32478]]

List of Subjects in 7 CFR Part 1786

    Accounting, Administrative practice and procedure, Electric 
utilities.

    For the reasons set out in the preamble, and under the authority of 
the Under Secretary for Rural Development, Title 7 of the Code of 
Federal Regulations is amended as follows:

PART 1786--PREPAYMENT OF RUS GUARANTEED AND INSURED LOANS TO 
ELECTRIC AND TELEPHONE BORROWERS

    1. The authority citation for part 1786 continues to read as 
follows:

    Authority: 7 U.S.C. 901-950b; Title I, subtitle B, Pub.L. 99-
509; Pub.L. 101-624, 104 Stat. 4051; Pub.L. 103-354, 108 Stat. 3178 
(7 U.S.C. 6941 et seq.), unless otherwise noted.

Subpart D 1786.75 through 1786.86 [Removed and Reserved]

    2. Subpart D of Part 1786, consisting of sections 1786.75 through 
1786.86, is removed and reserved.

    Dated: June 9, 1997.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 97-15757 Filed 6-13-97; 8:45 am]
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