[Federal Register Volume 59, Number 121 (Friday, June 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15365]
[[Page Unknown]]
[Federal Register: June 24, 1994]
VOL. 59, NO. 121
Friday, June 24, 1994
DEPARTMENT OF AGRICULTURE
Farmers Home Administration
7 CFR Part 1980
RIN 0575-AB84
Business and Industrial Loan Program
AGENCY: Farmers Home Administration, USDA.
ACTION: Proposed rule.
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SUMMARY: The Farmers Home Administration (FmHA) proposes to amend its
Business and Industry loan servicing regulations. The action is
necessary to clarify the procedure for categorizing & classifying loans
according to payment frequency criteria. The intended effect is to
clarify procedures for classifying and categorizing loan payment
history.
DATES: Comments must be submitted on or before August 23, 1994.
ADDRESSES: Submit written comments in duplicate to the Office of the
Chief, Regulations Analysis and Control Branch, Farmers Home
Administration, U.S. Department of Agriculture, room 6348, South
Agriculture Building, 14th and Independence Avenue SW., Washington, DC
20250-0700. All written comments made pursuant to this notice will be
available for public inspection during regular working hours at the
above address.
FOR FURTHER INFORMATION CONTACT: Kenneth E. Hennings, Senior Loan
Specialist, Business and Industry Division, Rural Development
Administration, 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 proposed 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. FmHA and RDA conduct
intergovernmental consultation in the manner delineated in FmHA
Instruction 1940-J, ``Intergovernmental Review of Farmers Home
Administration Programs and Activities.''
Civil Justice Reform
This document has been reviewed in accordance with Executive Order
12778. It is the determination of RDA and FmHA that this action does
not unduly burden the Federal Court System in that it meets all
applicable standards provided in section 2 of the Executive Order.
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 proposed 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.'' FmHA and RDA have 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.
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 proposed to be 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) * * *
(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: June 6, 1994.
Bob J. Nash,
Under Secretary, Small Community and Rural Development.
[FR Doc. 94-15365 Filed 6-23-94; 8:45 am]
BILLING CODE 3410-32-U
