[Federal Register Volume 64, Number 150 (Thursday, August 5, 1999)]
[Notices]
[Pages 42640-42641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20173]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
Information Collection Activity; Comment Request
AGENCY: Rural Utilities Service, USDA.
ACTION: Notice and request for comments.
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SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35, as amended), the Rural Utilities Service's (RUS)
invites comments on this information collection for which RUS intends
to request approval from the Office of Management and Budget (OMB).
DATES: Comments on this notice must be received by October 4, 1999.
FOR FURTHER INFORMATION CONTACT: F. Lamont Heppe, Jr., Program
Development & Regulatory Analysis, Rural Utilities Service, USDA, 1400
Independence Ave., SW., STOP 1522, Room 4034, South Building,
Washington, DC 20250-1522. Telephone: (202) 720-0736. FAX: (202) 720-
4120.
SUPPLEMENTARY INFORMATION:
Title: Mergers and Consolidations of Electric Borrowers.
OMB Control Number: 0572-0114.
Type of Request: Extension of a previously approved collection.
Abstract: The Rural Electrification Act of 1936, as amended,
authorizes the Rural Utilities Service (RUS) to make and guarantee
loans for rural electrification. Due to deregulation and restructuring
activities in the electric industry, RUS borrowers find it advantageous
to merge or consolidate to meet the challenges of industry change. This
information collection addresses the requirements of RUS polices and
procedures for mergers and consolidations of electric program borrowers
and affects three aspects of merger activities.
The first is documentation required to do business with a
successor. Most mergers do not require RUS approval. However, RUS as a
secured lender
[[Page 42641]]
needs documentation to legally advance loan funds and conduct other
business activities with the new or surviving entity. The specific
documents required vary according to state law and the particular
circumstances of the merger. Most of the information required by RUS
consists of copies of documents that the borrower must file with state
and local authorities.
The second concerns transitional assistance. Short-term financial
stress can follow mergers and consolidations that will in the long term
benefit rural America and enhance government loan security. Title 7 CFR
part 1717, subpart D, offers transitional assistance to mitigate these
stresses. This information collection includes documentation from
borrowers requesting such assistance.
Third are the unusual situations where RUS approval of a merger is
required. This collection includes the list of documents that RUS needs
to approve a merger. Except for a formal transmittal letter and board
resolution from each of the companies involved, RUS believes that the
information required is prepared by any prudent business attempting to
enter into a merger.
RUS may not require borrower to either merge or to study the
possibility of merger. The provisions of the rule may be utilized only
at the borrower's request. This collection of information encompasses
the procedures for borrowers who wish to enter into mergers or who
request transitional assistance.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 10 hour per response.
Respondents: Small cooperatives or similar organizations.
Estimated Number of Respondents: 25.
Estimated Number of Responses per Respondent: 1.
Estimate Total Annual Burden on Respondents: 249 hours.
Copies of this information collection can be obtained from Dawn
Wolfgang, Program Development and Regulatory Analysis, at (202) 720-
0812.
Comments are invited on (a) Whether the collection of information
is necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility; (b) the
accuracy of the agency's estimate of burden including the validity of
the methodology and assumption used; (c) ways to enhance the quality,
utility and clarity of the information to be collected; and (d) ways to
minimize the burden of the collection of information on those who are
to respond, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques on
other forms of information technology. Comments may be sent to F.
Lamont Heppe, Jr., Director, Program Development and Regulatory
Analysis, Rural Utilities Service, U.S. Department of Agriculture, 1400
Independence Ave., SW, Stop 1522, Room 4034 South Building, Washington,
DC 20250-1522.
All responses to this notice will be summarized and included in the
request for OMB approval. All comments will also become a matter of
public record.
Dated: July 30, 1999.
Blaine D. Stockton, Jr.
Acting Administrator, Rural Utilities Service.
[FR Doc. 99-20173 Filed 8-4-99; 8:45 am]
BILLING CODE 3410-15-P
