[Federal Register Volume 59, Number 160 (Friday, August 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20434]
[[Page Unknown]]
[Federal Register: August 19, 1994]
VOL. 59, NO. 160
Friday, August 19, 1994
DEPARTMENT OF AGRICULTURE
Farmers Home Administration
Submission of Information Collection to OMB (Under Paperwork
Reduction Act and 5 CFR Part 1320)
AGENCY: Farmers Home Administration, USDA.
ACTION: Notice.
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SUMMARY: The information collection requirement described below has
been submitted to OMB for expedited clearance under 5 CFR 1320.18. The
Agency solicits comments on subject submission. This action is
necessary in order for the Agency to amend its Farmer Programs
servicing regulations to add the Disaster Set-aside (DSA) Program. This
program will be made available to Farmer Program borrowers who operated
a farm or ranch in a county where a disaster occurred in 1993 and was
declared/designated a disaster area in accordance with FmHA
regulations. Under this program, distressed borrowers will have the
opportunity to move their next scheduled FmHA annual installment to the
end of the loan term. The intended effect is to service disaster
victims in an efficient and timely manner while keeping them in
business.
ADDRESSES: Interested persons are invited to submit comments regarding
this submission. Comments should refer to the proposal by name and
should be sent to: Lisa Grove, USDA Desk Officer, Office of Management
and Budget, New Executive Office Building, Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT: Kimberly R. Laris, Loan Officer,
Farmer Programs Loan Servicing and Property Management Division, USDA,
14th Street and Independence Avenue, SW., South Building, Washington,
DC 20250, Telephone (202) 720-4572.
SUPPLEMENTARY INFORMATION: The Agency has submitted the proposal for
collection of information as described below, to OMB for clearance as
required by the Paperwork Reduction Act (44 U.S.C. Chapter 35). It is
requested that OMB approve this submission within 10 days. The
supporting statement attached explains the need for adding FmHA
Regulation 1951-T, Disaster Set-Aside Program.
Authority: Section 3507 of the Paperwork Reduction Act, 44
U.S.C. 3507.
Supporting Statement
7 CFR 1951-T, Disaster Set-Aside Program
1. Explanation of the circumstances that make the collection of
information necessary.
The Farmers Home Administration (FmHA) is requesting expedited
clearance of the paperwork burden for this regulation. Approval is
requested in accordance with the Paperwork Reduction Act and 5 CFR
1320.
Eighty percent of the 3,151 counties serviced by FmHA were declared
disaster areas in 1993. Due to heavy flooding in the midwest and
extreme droughts in the South, considerably more borrowers were
affected by disasters in 1993 than in any of the previous five years.
Although this program was initially begun for the borrowers who were
affected by the 1993 disasters, it will also help those who are
affected by the 1994 flood disaster in the South if they were also
affected by the previous disasters in 1993. It will also be possible to
consider extension of this program to assist borrowers affected only by
the 1994 disaster. This consideration will be given prior to issuance
of the final rule. In order to prevent massive delinquencies and farm
failures, it is imperative that borrowers in a crisis situation receive
immediate financial assistance.
It is for this purpose and by the authority granted the Secretary
under the Consolidated Farm and Rural Development Act (CONACT), Section
331A (7 U.S.C. 1981a), FmHA has made available the Disaster Set-aside
Program. As provided in Section 331A, the Secretary has the authority
to defer principal and interest at the request of the borrower on any
outstanding loan made, insured, or held by the Secretary under the
CONACT, subject to the borrower showing that due to circumstances
beyond his/her control, he/she is temporarily unable to continue making
payments when due without unduly impairing his/her standard of living.
The set-aside program is designed to assist borrowers in financial
distress who operated a farm or ranch in a county where a disaster
occurred in 1993 and was declared/designated a disaster area as set
forth in subpart A of part 1945 of this chapter.
Under this program, farmer programs borrowers can receive immediate
financial relief from their FmHA payment obligations. FmHA projects
that approximately 60,000 borrowers affected by 1993 disasters will
request assistance under the set-aside program. Of these borrowers,
approximately 20,000 have installments that came due January 1, 1994.
If these installments are not paid by January 1, 1995, or otherwise
set-aside, the borrower will be two installments behind and will no
longer be eligible to receive disaster set-aside assistance. Borrowers
more than one payment behind will be able to receive more assistance
and offered more options through FmHA's loan servicing program under 7
CFR 1951-S. However, borrowers who cannot obtain servicing through 7
CFR 1951-S may be able to cure their delinquency with set-aside
assistance. The set-aside program will be better for some borrowers
than the servicing program provided through 7 CFR 1951-S since the set-
aside will be a faster process, eligibility requirements are easier to
meet, paperwork is less, and some borrowers will be able to be back on
track after one payment is set-aside. The Agency realizes that although
this may not be a solution to finding the borrower a feasible plan, it
may provide temporary assistance to borrowers needing that type of
relief. It will allow some borrowers to use sources other than FmHA to
maintain their farm operation and allow them to work out their
financial difficulty over the next year or so. Borrowers can cure their
FmHA delinquency while at the same time continue farming and find the
means to recover from the affects of the disaster. Other borrowers may
prefer to use the year to voluntarily liquidate. This regulation will
therefore provide options to prevent the foreclosure of borrowers in
both of these instances. It is because of these reasons that
implementation of this regulation as an interim rule is crucial to
providing assistance to borrowers with the most urgent need while
keeping them in business or allowing them crucial time to make optional
choices. Borrowers who are not eligible for the DSA program, or who
need more extensive servicing, will still have the opportunity to be
considered for FmHA's primary loan servicing program as set forth in 7
CFR 1951-S.
The set-aside program allows eligible borrowers to move one FmHA
annual installment for each loan to the end of the loan term, thereby
quickly eliminating the immediate financial stress. The installment
set-aside may be the one due immediately after the disaster or, if that
installment is paid to the neglect of other creditors or family living
and operating expenses, then the next scheduled installment may be set-
aside. Borrowers who received primary loan servicing after the disaster
will not be eligible for the disaster set-aside, as restructuring of
the account resolved the financial distress for the current and next
production/marketing period.
The reporting requirements imposed on the public by the regulations
set out in 7 CFR 1951-T are necessary to administer this program.
Borrowers must request DSA in writing and be able to show from their
actual production income and expense records that because of the
disaster, their projected income was reduced to an amount that would
prevent payment of all family living and operating expenses, and paying
amounts due FmHA and/or other creditors. The addendum is needed in
order to amend the promissory note/assumption agreement to reflect the
amount set-aside and provide for collection on or before the final due
date of the loan.
2. Indicate how, by whom, and for what purpose the information is
to be used and the consequence to Federal program or policy activities
if the collection of information was not conducted.
The information required of FmHA farm borrowers is collected by
FmHA loan servicing officials to facilitate an effective decision-
making process when considering set-aside requests.
The effectiveness of this regulation is dependent upon collection
of information from the borrower and the ability to execute an
agreement for future repayment of the set-aside installment. Without
this information, the Agency cannot provide disaster victims with the
servicing they most desperately need in an expedient manner.
Specifically, the burden imposed by this regulation is described as
follows:
Written Request for DSA
The letter of notification about the DSA program requires borrowers
to respond in writing if they wish to be considered for set-aside.
Written response can be limited to one sentence with signatures of all
persons liable for the FmHA debt. The burden is limited to the time it
takes the borrower to read the notification letter and prepare a signed
written request. The average response time is estimated to be 15
minutes.
Production, Income and Expenses Records
The letter of notification about the DSA program also requires the
borrower to provide actual production, income and expense figures for
the production/marketing period in which the 1993 disaster occurred,
unless this information has already been provided to FmHA. The majority
of the borrowers who request DSA will have already provided these
records because of other FmHA regulations that require annual year-end
analysis of the farming operation. The average response time is
estimated to be 5 minutes.
Addendum to the Promissory Note/Assumption Agreement for the Disaster
Set-Aside Program
In order for eligible borrowers to participate in the DSA program,
an addendum must be signed for each loan installment set-aside and
attached to the promissory note/assumption agreement. This addendum
must be signed within 30 days from the date the borrower is notified of
eligibility. The addendum provides an agreement from the borrower that
the installment being set-aside, plus accrued interest on any principal
set-aside, will be paid on or before the final due date of the loan.
The addendum is completed by FmHA personnel. The burden imposed on the
borrower is limited to the time required to read and sign the addendum.
The average burden time is estimated to be 5 minutes.
3. Describe any consideration of the use of improved information
technology to reduce burden and any technical or legal obstacles to
reducing burden.
The information collected is of such type and nature that the use
of improved information technology, such as data and word processing,
would not significantly reduce the public burden. The Agency has not
identified any legal obstacles to reducing reporting burdens associated
with this regulation.
4. Describe efforts to identify duplication.
Every effort has been made to avoid unnecessary duplication of
information collected. Any information that was previously collected
concerning the debtor that remains relevant is utilized to reduce the
public burden.
5. Show specifically why any similar information already available
cannot be used or modified for the purpose(s) described in 2.
There is no similar information available to replace the written
request of the borrower or the set-aside addendum. However, and as
previously stated, if the borrowers production and income and expense
records for the disaster year have already been collected, this
information does not have to be provided again.
6. If the collection of information involves small businesses or
other small entities, describe the methods used to minimize burden.
The information required by this regulation places no burden on
small businesses or other small entities beyond that performed in the
course of normal business practices.
7. Describe the consequence to Federal program or policy activities
if the collection were conducted less frequently.
The borrower can only request disaster set-aside one time.
Therefore, the frequency of collection is at the absolute minimum level
necessary to enable FmHA to make responsible decisions.
8. Explain any special circumstances that require the collection to
be conducted in a manner inconsistent with the guidelines in 5 CFR
1320.6.
There are no information requirements that are inconsistent with
the guidelines in 5 CFR 1320.6.
9. Describe efforts to consult with persons outside the agency to
obtain their views on the availability of data, frequency of
collection, the clarity of instructions and recordkeeping, disclosure,
or reporting format (if any), and on the data elements to be recorded,
disclosed, or reported.
The following groups were contacted in July 1994 to obtain their
views on the paperwork burden: (1) Lane Landenburger of the North
Dakota Department of Agriculture, Telephone number 701-223-4423, (2)
Lynn Hayes, Farmers Legal Action Group, Telephone number 612-223-5400,
(3) Renee Robinson, Illinois Stewardship Alliance, Telephone number
217-498-9707, and (4) Melody G. Julian, National Association of County
Supervisors, 316-227-3761. The regulation and form letter were
reviewed. Their comments were all favorable. In their opinion, the
regulation and instructions to the borrower were easy to understand.
Most borrowers should have their actual records for the 1993 disaster
year completed since the 1993 tax year has already passed. In fact,
most borrowers will have already provided these records to FmHA for
their year-end analysis and will not have to provide them again. In
these cases, the only item left to submit is the letter of request.
They also stated the addendum the borrower signs is easy to read and
understand and there shouldn't be any confusion.
10. Describe any assurance of confidentiality provided to
respondents and the basis for the assurance in statute, regulation, or
agency policy.
There is no assurance of confidentiality provided to respondents
for the information required by this regulation.
11. Provide additional justification for any questions of a
sensitive nature, such as sexual behavior and attitudes, religious
beliefs, and other matters that are commonly considered private.
The information to be collected under this regulation does not
involve any questions of a sensitive nature.
12. Provide estimates of annualized cost to the Federal Government
and to the respondents. Also provide a description of the method used
to estimate cost, which should include quantification of hours,
operational expenses, and any other expense that would not have been
incurred without the paperwork burden.
The annual cost to the Federal Government to implement and
administer this regulation is estimated to be $1,544,400, which
includes salaries, operational expenses and overhead. The national
average cost factor is $17.16 per hour. Federal Government costs for
this regulation are based on the number of notifications, responses and
persons qualifying for the program, times the hourly cost factor.
The estimated annual cost to respondents is $246,092, using a rate
of $10.34, derived from the Statistical Abstract of the United States
1992, the National Data Book, Table 650, page 410. This table was based
on information from the U.S. Bureau of Labor Statistics Average Hourly
and Weekly Earnings in Current and Constant (1982) Dollars for 1991.
13. Provide estimates of the burden of the collection of
information.
Attached is a chart indicating the estimates of the public's annual
burden. FmHA estimates that approximately 100,000 farmer programs
borrowers will be notified of the DSA program. This number includes all
FP borrowers who operated in a disaster area during 1993. FmHA
estimates that approximately 60,000 of these borrowers will make a
written request for DSA. The other 40,000 will not apply for various
reasons. Approximately 10,000 borrowers have or will be restructured
under subpart S of part 1951 and therefore will not be eligible for
this program. Approximately 20,000 will not apply because they know
they cannot meet the eligibilty requirements. The other 10,000 will not
apply because even though they might have operated in a disaster area,
they were able to pay all family living and operating expenses, and all
payments to FmHA and other creditors.
Of the 60,000 borrowers who request DSA, FmHA estimates that 50,000
will actually receive DSA. The other 10,000 will either not qualify for
the program or will choose 1951-S servicing instead.
14. Explain reasons for changes in burden, including the need for
any increase.
This is a new regulation.
15. For collections of information whose results are planned to be
published for statistical use.
There are no plans to publish information from these documents for
statistical purposes and therefore Section B does not apply.
7 CFR 1951-T, Disaster Set-Aside Program
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July 8, 1994
----------------------------------------------------------------------------
Est. No. Est.
Section of regulation Title Form No. Est. No. Reports Total of hours Est. hourly Est.
of filed annual per total salary total
responses annually responses response hours rate cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
1951.953(b)(1)................. Written Request for DSA....... Letter.... 60,000 1 60,000 .25 15,000 10.34 $155,100
1951.953(b)(2)................. Production, income and expense Written... 60,000 1 60,000 .08 4,800 10.34 49,632
records.
1951.957(a)(1) Exhibit A....... Addendum to the Promissory Written... 50,000 1 50,000 0.8 4,000 10.34 41,360
Note/Assumption Agreement for
the Disaster Set-aside
Program.
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Totals................... .............................. .......... ......... 170,000 ......... 23,800 246,092 ......... .........
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PART 1951--SERVICING AND COLLECTIONS
Subpart T--Disaster Set-aside Program
Sec.
1951.951 Purpose.
1951.952 General.
1951.953 Notification and request for DSA.
1951.954-1951.956 [Reserved]
1951.957 Eligibility determination and processing.
1951.958 Supervision and servicing of borrowers with DSA.
1951.959 Exception authority.
1951.960-1951.999 [Reserved]
1951.1000 OMB control number.
Exhibit A--Addendum to the Promissory Note/Assumption Agreement for
the Disaster Set-Aside Program
Subpart T--Disaster Set-aside Program
Sec. 1951.951 Purpose.
This subpart sets forth the policies and procedures for
establishing and implementing the Disaster Set-aside Program (DSA). The
DSA program is available to Farmer Programs (FP) borrowers, as defined
in subpart S of this part, who suffered losses as a result of a 1993
disaster. FP loans that may be serviced under this subpart include Farm
Ownership (FO), Operating (OL), Soil and Water (SW), Emergency (EM),
Economic Emergency (EE), Special Livestock (SL), Economic Opportunity
(EO), Softwood Timber (ST), Recreation (RL), and Rural Housing loans
for farm service buildings (RHF). Non-program (NP) farm type loans may
be serviced under this subpart for borrowers who also have program FP
loans. FP borrowers have until July 1, 1995, to request disaster set-
aside and submit a complete application. Requests received after this
date will not be accepted.
Sec. 1951.952 General.
Disaster set-aside is a program whereby borrowers who are current
or not more than 1 installment behind on any and all FP loans may be
permitted to move one Farmers Home Administration (FmHA) scheduled
annual installment(s) for each eligible FP loan to the end of the loan
term. Borrowers whose loans are restructured in accordance with subpart
S of this part after the disaster occurred are not eligible for the DSA
program. The intent of this program is to relieve some of the
borrower's immediate financial stress caused by the disaster and avoid
foreclosure by the Government.
Sec. 1951.953 Notification and Request for DSA.
(a) Notification. The County Supervisor will use form letter 1951-
1-T to notify FP borrowers of the availability of the DSA program and
how to apply. All FP borrowers, as defined in Sec. 1951.906 of subpart
S of this part, who operated a farm or ranch in a county during 1993 in
which a disaster occurred and was declared/designated as a disaster
area, or contiguous county, as set forth in subpart A of part 1945 of
this chapter will be notified within 10 days of the effective date of
this instruction. Notification of the DSA program will not affect the
notification requirements set forth in subpart S of this part.
(b) Request for DSA.
(1) All FP borrowers liable for the debt must request disaster set-
aside in writing prior to July 1, 1995.
(2) Borrowers must provide the County Supervisor with actual
production, income and expense figures for the production/marketing
period in which the 1993 disaster occurred, unless this information is
already in the borrower case file.
(3) Borrowers may only be considered for DSA one time.
(c) Eligibility requirements.
(1) The borrower operated a farm or ranch in a county declared/
designated a disaster area as set forth in subpart A of part 1945 of
this chapter, or a contiguous county to such an area based on a 1993
disaster. The borrower must have been operating the farm or ranch at
the time of the disaster.
(2) The borrower has acted in good faith as defined in
Sec. 1951.906 of subpart S of this part.
(3) All nonmonetary defaults have been resolved. This means that
even though the borrower has acted in good faith, he/she may still be
in default for reasons, such as, but not limited to: no longer farming,
prior lienholder foreclosure, bankruptcy, not properly maintaining
chattel and real estate security, not properly accounting for the sale
of security as agreed, or not carrying out any other agreements made
with FmHA.
(4) The borrower is current or not more than one installment behind
on any and all FP loans at the time the scheduled installment(s) will
be set-aside as reflected on the Finance Office 540 or 582 status
reports.
(5) The borrower's projected income for the disaster year was
reduced as a result of the disaster, causing insufficient income
available to pay all family living and operating expenses, pay debts to
other creditors and pay FmHA. This determination will be based on the
borrower's actual production and income and expense records for the
disaster year. Releases of normal income security will continue as set
forth in subpart A of part 1962 of this chapter.
(6) The term remaining on the loan(s) receiving set-aside equals or
exceeds 2 years from the due date of the installment being set-aside.
(7) All FP loans will be current after the scheduled installments
are set-aside.
Secs. 1951.954-1951.956 [Reserved]
Sec. 1951.957 Eligibility determination and processing.
(a) Eligibility determination. Upon receipt of a DSA request, the
County Supervisor will determine whether the borrower meets the
eligibility requirements set forth in Sec. 1951.953(c) of this subpart
and notify the borrower of the results within 30 days from the date of
the DSA request. The file shall contain documentation to reflect the
date of request and the date the borrower was notified and the addendum
signed.
(1) The borrower shall be provided up to 30 days to sign Exhibit A,
``Addendum to the Promissory Note/Assumption Agreement for the Disaster
Set-aside Program.'' If the addendum is not signed within 30 days and/
or prior to the borrower becoming more than 1 installment behind, the
DSA request will be withdrawn and the borrower notified of their appeal
rights under subpart B of part 1900 of this chapter.
(2) Pending requests for primary loan servicing will continue to be
considered as set forth in subpart S of this part. However, borrowers
cannot accept servicing under both programs.
(i) Borrowers determined eligible for the DSA and 1951-S servicing
will be required to choose between the two program requests. The choice
will be noted in the borrower case file and initialed by the borrower.
(ii) Borrowers may choose to proceed with the DSA prior to a
decision being made for primary loan servicing such as in cases where a
decision will not be available on the primary loan servicing
application prior to the borrower becoming more than 1 installment
behind.
(iii) The application for the program not chosen will automatically
be withdrawn at the time the installment(s) are set-aside or the
loan(s) restructured, whichever is applicable. This voluntary
withdrawal is not appealable.
(iv) By signing Exhibit A of this subpart, the borrower agrees to
the withdrawal of any pending request for primary loan servicing. The
borrower may resubmit a request at any time according to subpart S of
this part.
(b) Processing. Installments will be set-aside as set forth in this
paragraph.
(1) All borrowers liable for the debt will sign Exhibit A of this
subpart for each loan installment set-aside. Exhibit A may be modified
with the assistance of the Office of the General Counsel to comply with
individual State laws.
(2) Only one unpaid installment for each FP loan may be set-aside.
(i) The installment set-aside will be the first scheduled annual
installment due immediately after the disaster occurred, or if that
installment is paid current, the next scheduled annual installment.
Set-aside will not be granted on the loan if both of these installments
are paid current.
(ii) The amount set-aside will not exceed the annual scheduled
installment being set-aside minus any portion of that installment paid
prior to Exhibit A being signed by the borrower. This amount will
include the unpaid interest and any principal that would be credited to
the account as if the installment were paid on the due date.
(iii) Recoverable cost items charged to FO, SW, and RHF loans may
be set-aside with the annual installment. Cost items identified with a
loan number different from the parent loan cannot be set-aside.
(3) Interest will accrue on any principal amount set-aside at the
same rate charged the non-set-aside portion. Interest will not accrue
on the interest portion set-aside.
(4) The amount set-aside, including interest accrual on any
principal set-aside, will be due on or before the final due date of the
loan.
(5) There are no security requirements attached to the DSA program.
All existing security instruments will remain in effect.
(6) Exhibit A will be used as the source document to process the
set-aside through ADPS. Until automation capabilities are implemented,
Exhibit A should be placed in a pending file and the borrower's account
flagged ``51-S.'' The Finance Office borrower account status reports
will reflect the amount(s) set-aside for each loan.
(7) The National Automated Tracking System (AGCREDIT) will be
utilized to document the notification and servicing scheme associated
with this subpart.
(8) The loan(s) will be considered current after the installment(s)
is set-aside and, therefore, debt writedown or net recovery buyout may
not be subsequently approved under subpart S of this part, and loans
may not be made under Sec. 1941.14 of subpart A of part 1941 of this
chapter, unless the set-aside is reversed as set forth in
Sec. 1951.958(b)(2) of this subpart or the borrower becomes delinquent
on the non-set-aside portion.
(c) Adverse determination. Borrowers who do not meet the
requirements for the DSA program will be notified of their appeal
rights in accordance with subpart B of part 1900 of this chapter. If
the borrower becomes more than 1 installment behind on any FP loan
while processing the DSA request, or while an appeal is being
considered, the DSA request will be denied and/or any associated appeal
request withdrawn. Being denied set-aside based on the failure to meet
the not-more-than-1-installment-behind requirement is not an appealable
issue, but is reviewable. The letter to the borrower will describe in
full detail all the reasons for the adverse decision. Borrowers denied
set-aside will continue to be serviced in accordance with subpart S of
this part.
Sec. 1951.958 Supervision and servicing of borrowers with DSA.
(a) Supervision. Borrower supervision will continue as set forth in
subpart B of part 1924 of this chapter.
(b) Servicing. FP loans will continue to be serviced in accordance
with the appropriate servicing regulations.
(1) Payments applied to the amount set-aside will be processed as a
miscellaneous payment on Form FmHA 451-2, ``Schedule of Remittance.''
(2) The set-aside will be reversed and the addendum cancelled if,
prior to the first scheduled installment due date after set-aside, the
current borrower needs a writedown in order to develop a feasible plan
or a net recovery buyout in accordance with subpart S of this part, or
loan assistance set forth in Sec. 1941.14 of subpart A of part 1941 of
this chapter. The Finance Office must be notified by memorandum of the
set-aside reversal prior to the time assistance is granted. A copy of
the memorandum will be attached to the addendum.
(3) In cases not covered by paragraph (b)(2) of this section, the
set-aside will be considered automatically cancelled whenever a program
loan receives primary loan servicing.
Sec. 1951.959 Exception authority.
The Administrator may, in individual cases, make an exception to
any requirement or provision of this subpart or address any omission of
this subpart which is not inconsistent with the authorizing statute or
other applicable law if it is determined that application of the
requirement or provision or failure to take action in the case of an
omission would adversely affect the Government's interest. The
Administrator will exercise this authority upon the request of the
State Director, with the recommendation of the Assistant Administrator
for Farmer Programs; or upon request initiated by the Assistant
Administrator for Farmer Programs. Requests for exception must be made
in writing and supported with documentation to explain the adverse
effect and proposed alternative courses of action, and to show how the
adverse effect will be eliminated or minimized if the exception is
granted.
Secs. 1951.960-1951.999 [Reserved]
Sec. 1951.1000 OMB control number.
The collection of information requirements in this regulation have
been approved by the Office of Management and Budget and assigned OMB
control number [0000-0000]. Public reporting burden for this collection
of information is estimated to be 15 minutes per response, including
time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing
the collection of information. Send comments regarding this burden
estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Department of
Agriculture, Clearance Office OIRM, Room 404-W, Washington, D.C. 20250;
and to the Office of Management and Budget, Paperwork Reduction Project
(OMB#0000-0000), Washington, D.C. 20503.
Exhibit A of Subpart T--Addendum to the Promissory Note/Assumption
Agreement for the Disaster Set-Aside Program
Purpose: For use with the DSA program and to be signed by the
borrower and attached to the promissory note/assumption agreement.
Addendum to the Promissory Note/Assumption Agreement for the Disaster
Set-Aside Program
Date-------------------------------------------------------------------
Case Number------------------------------------------------------------
Name-------------------------------------------------------------------
Note/Assumption Agreement:
Fund Code--------------------------------------------------------------
Loan No.---------------------------------------------------------------
Date-------------------------------------------------------------------
Amount-----------------------------------------------------------------
This addendum amends the above described promissory note or
assumption agreement to set forth the terms and conditions for set-
aside of the installment described below.
Date of Scheduled Installment Set-Aside
----------------------------------------------------------------------
Amount of Installment Set-Aside:
Principal $------------------------------------------------------------
Interest---------------------------------------------------------------
Total $----------------------------------------------------------------
Any principal amount set-aside will continue to accrue interest at
the same rate being charged the non-set-aside portion of the note.
This addendum does not change any of the terms or conditions of the
promissory note/assumption agreement.
The undersigned borrower and any cosigners hereby agree to pay the
installment being set-aside, plus any accrued interest on the principal
amount set-aside, on or before the final due date of the loan, as set
forth on the note or assumption agreement being amended.
If the promissory note/assumption agreement is later restructured
through primary loan servicing, the addendum will automatically be
considered cancelled and the amount set-aside will be included in the
total debt restructured.
The undersigned borrower(s) understands that by signing this
addendum he/she is agreeing to the withdrawal of any pending request
for primary loan servicing. This withdrawal does not affect the
undersigned's future eligibility for primary loan servicing.
----------------------------------------------------------------------
Borrower
----------------------------------------------------------------------
Borrower
Dated: August 15, 1994.
Michael V. Dunn,
Administrator.
[FR Doc. 94-20434 Filed 8-18-94; 8:45 am]
BILLING CODE 3410-07-U
