[Federal Register Volume 59, Number 7 (Tuesday, January 11, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-555]


[[Page Unknown]]

[Federal Register: January 11, 1994]


                                                     VOL. 59, NO. 7

                                          Tuesday, January 11, 1994
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DEPARTMENT OF AGRICULTURE

Farmers Home Administration

 

Redelegation of Authority To Approve Releases of Liability in 
Connection With Voluntary Liquidations

AGENCY: Farmers Home Administration, USDA.

ACTION: Notice of redelegation of authority.

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SUMMARY: On September 11, 1992, the Farmers Home Administration (FmHA) 
redelegated certain authorities to all State Directors dealing with the 
settlement of and/or the release of liability on FmHA debts owed by 
borrowers who made application to settle their FmHA debts or request 
release of liability. Notice of this redelegation was published in 57 
FR 43688 (September 22, 1992). The redelegation authority, granted on 
September 11, 1992, expired on September 30, 1993, and the 
Administrator now gives notice to extend that redelegation until 
December 31, 1994. All release of liability cases of $1,000,000 or more 
(including principal, interest and other charges) must be submitted to 
the National Office for approval by the Administrator. This action is 
taken to expedite the processing of requests of borrowers who are 
unable to repay all of their FmHA debts.
    The effect of the extension of the redelegation of the 
Administrator's authority is to continue to expedite the administrative 
review process for releases of liability, permitting more timely debt 
relief to FmHA borrowers, and to consequently reduce the Agency's 
portfolio of inactive uncollectible accounts.

EFFECTIVE DATE: October 1, 1993 though December 31, 1994.

FOR FURTHER INFORMATION CONTACT:
Melvin R. Padgett II, Senior Loan Officer, Farmer Programs Loan 
Servicing and Property Management Division, Farmers Home 
Administration, USDA, room 5444, South Agriculture Building, 14th and 
Independence Avenue SW., Washington, DC 20250, telephone (202) 720-
6293.

SUPPLEMENTARY INFORMATION: 

Programs Affected

    This action affects the following FmHA programs as listed in the 
Catalog of Federal Domestic Assistance:


10.404  Emergency Loans.
10.406  Farm Operating Loans.
10.407  Farm Ownership Loans.
10.410  Low-Income Housing Loans.
10.416  Soil and Water Loans.
10.417  Very Low-Income Housing Repair Loans and Grants.
10.428  Economic Emergency Loans.


    The notice of the delegation of authority for approving release of 
liability cases reads as follows:
    This extends the authority to approve Release of Liability cases 
given under the unnumbered memorandum dated September 11, 1992, 
entitled ``Extension of the Delegation of Authority for Approving Debt 
Settlement/Release of Liability Cases.'' You were given authority to 
approve debt settlement cases of less $1,000,000 in FmHA Instruction 
1956-B, Section 1956.84(a) on April 21, 1993, under Procedure Notice 
Number 204.
    Pursuant to authority delegated to me as Administrator of Farmers 
Home Administration, I hereby redelegate to State Directors authority 
to approve the following:
    1. Release of Lability cases in accordance with Sections 
1955.10(f)(2) and 1955.20(b)(2) of FmHA Instruction 1955-A, 
``Liquidation of Loans Secured by Real Estate and Acquisition of Real 
and Chattel Property.''
    2. Release of Liability cases in accordance with Section 1962.34(h) 
of FmHA Instruction 1962-A, ``Servicing and Liquidation of Chattel 
Security,'' and Sections 1965.26(f)(5)(ii) and 1965.27(f) of FmHA 
Instruction 1965-A, ``Servicing of Real Estate Security for Farmer 
Programs Loans and Certain Note Only Cases.''
    This authority does not extend to Release of Liability cases for 
Nonprogram loans, Economic Opportunity loans, and claims against third 
party converters.
    Cases where the borrower's total indebtedness, including principal, 
interest, and other charges, is $1,000,000 or more must be submitted to 
the National Office for approval by the Administrator.
    This extension of the redelegation shall be effective through 
December 31, 1994, unless revoked or otherwise modified in writing. The 
authority delegated to the State Director cannot be further delegated.


    Dated: December 29, 1993.
Michael V. Dunn,
Administrator, Farmers Home Administration.
[FR Doc. 94-555 Filed 1-10-94; 8:45 am]
BILLING CODE 3410-07-M