[Federal Register Volume 59, Number 80 (Tuesday, April 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9967]


[[Page Unknown]]

[Federal Register: April 26, 1994]


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DEPARTMENT OF AGRICULTURE
Rural Electrification Administration

7 CFR Part 1700

 

General Information; Delegation of Authority

AGENCY: Rural Electrification Administration, USDA.

ACTION: Final rule.

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SUMMARY: The Rural Electrification Administration (REA) hereby revises 
and codifies its Delegation of Authority to reflect several changes in 
REA organizational structure and functions. These descriptions of REA's 
organization and methods by which its functions are channeled and 
determined are being issued as a final rule as guidance to the public.

EFFECTIVE DATE: This rule is effective April 26, 1994.

FOR FURTHER INFORMATION CONTACT: F. Lamont Heppe, Jr., Program Support 
Staff, Rural Electrification Administration, room 2234-S, U.S. 
Department of Agriculture, 14th and Independence Avenue, SW., 
Washington, DC 20250-1500, Telephone: (202) 720-0736.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This final rule has been determined to be not significant for 
purposes of Executive Order 12866 and therefore has not been reviewed 
by OMB.

Regulatory Flexibility Act Certification

    The Administrator of REA has determined that this final rule will 
not have a significant economic impact on a substantial number of small 
entities as defined in the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq.).

National Environmental Policy Act Certification

    The Administrator of REA has determined that this final rule will 
not significantly affect the quality of the human environment as 
defined by the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.). Therefore, this action does not require an environmental 
impact statement or assessment.

Catalog of Federal Domestic Assistance

    The programs described by this final rule are listed in the 1991 
Catalog of Federal Domestic Assistance Programs under No. 10.850, Rural 
Electrification Loans and Loan Guarantees; No. 10.851, Rural Telephone 
Loans and Loan Guarantees; No. 10.852, Rural Telephone Bank Loans; and 
No. 10.854, Rural Economic Development Loans and Grants. This catalog 
is available on a subscription basis from the Superintendent of 
Documents, the United States Government Printing Office, Washington, DC 
20402.

Executive Order 12372

    This final rule is excluded from the scope of Executive Order 
12372, Intergovernmental Consultant. A Notice of Final rule entitled 
Department Programs and Activities Excluded from Executive Order 12372 
(50 FR 47034) exempts REA electric loans and loan guarantees from 
coverage under this Order.

Information Collection and Recordkeeping Requirements

    This final rule contains no information collection or recordkeeping 
provisions requiring the Office of Management and Budget approval under 
the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).
    This final rule revises and reflects the current organizational 
structure of REA and methods of by which its functions are channeled. 
Accordingly, pursuant to this rule's being issued as a final rule 
without providing the public with an opportunity to comment since this 
is a ``. . . rule of the agency organization, procedure, or practice . 
. .''

List of Subjects in 7 CFR Part 1700

    Electric power, Freedom of information, Loan programs--
communication, Loan programs--energy, Organization and functions 
(Government agencies), Rural areas, Telephone.

    Therefore, REA amends part 1700 of 7 CFR chapter XVII as follows:

PART 1700--GENERAL INFORMATION

    1. The authority citation for 7 CFR part 1700 continues to read as 
follows:

    Authority: 7 U.S.C. 901 et seq.; Delegation of Authority by the 
Secretary of Agriculture, 7 CFR 2.23; Delegation of Authority by the 
Under Secretary of Agriculture for Small Community and Rural 
Development, 7 CFR 2.72; 7 U.S.C. 1921 et seq.; 5 U.S.C. 301, 552; 7 
CFR 1.1-1.16.

    2. Subparts D through L are added to read as follows:

Subpart D--Delegations of Authority; General

Sec.
1700.40  Exercise of delegated authority.
1700.41  Persons serving in acting capacities.
1700.42  Persons serving as acting Administrator.
1700.43  Persons serving as acting Assistant Administrator.
1700.44  Contracts approved on behalf of the Administrator.
1700.45-1700.59  [Reserved]

Subpart E--Delegations of Authority; Agency Issuances and Certain 
Correspondence

1700.60  Agency issuances.
1700.61  Agency publications control officer.
1700.62-1700.69  [Reserved]

Subpart F--Delegations; Authorities Reserved by the Administrator

1700.70  General.
1700.71  Rural economic development loan and grant and distance 
learning and medical link grant programs.
1700.72  Electric program.
1700.73  Telephone program.
1700.74-1700.89  [Reserved]

Subpart G--Delegations of Authority; Loan Review Committees

1700.90  General.
1700.91  Senior loan review committee.
1700.92  Assistant Administrator's loan committee.
1700.93  Rural economic development recommendation committee.
1700.94-1700.99  [Reserved]
Subpart H--Delegations of Authority; Rural Economic Development, 
Program Support, and Borrower Accounting Activities
1700.100  General.
1700.101  Deputy Administrator.
1700.102  Assistant Administrator--Economic Development and 
Technical Services.
1700.103  Director--Rural Development Assistance Staff.
1700.104  Chief, Financing Branch--Rural Development Assistance 
Staff.
1700.105  Director, Borrower Accounting Division.
1700.106  Chief, Technical Accounting and Auditing Staff.
1700.107  Chiefs, Area Accounting Branches.
1700.108  Field accountants.
1700.109  Director--Program Support Staff.
1700.110-1700.119  [Reserved]

Subpart I--Delegations of Authority; Electric Program

1700.120  General.
1700.121  Deputy Administrator.
1700.122  Assistant Administrator--Electric.
1700.123  Deputy Assistant Administrator--Electric.
1700.124  Regional Directors.
1700.125  Chiefs, Regional Engineering Branches.
1700.126  Chiefs, Area Operations Branches.
1700.127  Director--Power Supply Division.
1700.128  Chief, Operations Branch, Power Supply Division.
1700.129  Chiefs, Power Engineering Branches, Power Supply Division.
1700.130  General Field Representatives--Electric.
1700.131  Director, Electric Staff Division.
1700.132  Technical Standards Committees ``A'' and ``B''--Electric.
1700.133-1700.139  [Reserved]

Subpart J--Delegations of Authority; Telephone Program

1700.140  General.
1700.141  General delegations.
1700.142  Deputy Administrator.
1700.143  Assistant Administrator--Telephone.
1700.144  Deputy Assistant Administrator--Telephone.
1700.145  Regional Directors.
1700.146  Chiefs, Regional Engineering Branches--Telephone.
1700.147  Chiefs, Regional Operations Branches--Telephone.
1700.148  General Field Representatives--Telephone.
1700.149  Director--Telecommunications Standards Division.
1700.150  Technical Standards Committees ``A'' and ``B''--Telephone.
1700.151-1700.159  [Reserved]

Subpart K--Delegations of Authority; Financial Services

1700.160  General.
1700.161  Program Advisor, Financial Services Staff.
1700.162-1700.169  [Reserved]

Subpart L--Delegations of Authority; Financial Operations Activities

1700.170  General.
1700.171  Deputy Administrator.
1700.172  Director, Financial Operations Division.
1700.173  Chief, Loans Receivable Branch.
1700.174-1700.189  [Reserved]

Subpart D--Delegations of Authority; General


Sec. 1700.40  Exercise of delegated authority.

    (a) Unless specifically reserved, or otherwise delegated, the 
delegations of authority contained in subparts D through L of this part 
include the authority to take any action or execute any document deemed 
necessary and proper to the discharge of such responsibilities. In the 
exercise of authority delegated in subparts D through L of this part, 
all applicable REA policies, regulations, and procedures should be 
followed. All delegations previously made are superseded.
    (b) No delegation of authority by the Administrator or other person 
shall preclude the Administrator or other person from exercising any of 
the authority so delegated.


Sec. 1700.41  Persons serving in acting capacities.

    Incumbents delegated authority in subparts D through L of this part 
are authorized to designate a person to act for them as necessary, 
except that a Regional Director or the Director, Power Supply Division 
may not redelegate authority to approve loans, loan guarantees or lien 
accommodations, and related actions as set forth in Secs. 1700.124(a), 
1700.127(a) and 1700.145(a). If an incumbent of a position to whom 
delegations are made in subparts D through L of this part is absent or 
is unable to carry out such delegations, the person designated 
authority to act for the incumbent and exercise the authority conferred 
by such delegations. Such designations shall be in accordance with any 
instruction issued by the incumbent's supervisor.


Sec. 1700.42  Persons serving as acting Administrator.

    The following persons are authorized, in descending order, to act 
for the Administrator only in his or her absence, sickness, 
resignation, or death: Deputy Administrator, Assistant Administrator--
Electric, Assistant Administrator--Telephone, Assistant Administrator--
Economic Development and Technical Services. That is, if the first 
person on the list is also absent, sick, has resigned, or is dead, the 
second person on the list is authorized to act for the Administrator 
and so on down the list. Persons on this list may not redelegate the 
authority to act for the Administrator. The Administrator may in his/
her discretion in writing, on a case-by-case basis, delegate authority 
to act as Administrator in his/her absence outside of this specified 
order.


Sec. 1700.43  Persons serving as acting Assistant Administrator.

    (a) Electric and telephone programs. The Deputy Assistant 
Administrator in each program is authorized to act for the respective 
Assistant Administrator in the absence, sickness, resignation or death 
of that Assistant Administrator. The Deputy Assistant Administrators 
may not redelegate this authority.
    (b) Assistant Administrator--Economic Development and Technical 
Services. (1) The Directors of the Rural Development Assistance Staff, 
Borrower Accounting Division and the Program Support Staff are 
authorized to act for the Assistant Administrator--Economic Development 
and Technical Services in his or her absence according to the following 
schedule:

------------------------------------------------------------------------
            Director of                             Months              
------------------------------------------------------------------------
Rural Development Assistance Staff.  January, April, July, October.     
Borrowers Accounting Division......  February, May, August, November.   
Program Support Staff..............  March, June, September, December.  
------------------------------------------------------------------------

    (2) If a particular Director is absent, sick, has resigned or is 
dead during a scheduled month, the delegation will revolve back to the 
preceding month. These Directors may not redelegate this authority.


Sec. 1700.44  Contracts approved on behalf of the Administrator.

    (a) Nonstandard contracts. Prior to the approval or the execution 
of the following documents, the Office of the General Counsel (OGC) 
shall comment as to any legal matters concerning such nonstandard 
contracts:
    (1) Contracts for engineering services, architectural services, 
construction, and power supply that include a substantive deviation 
from the standard form contract approved by OGC; and
    (2) Other documents involving legal matters of concern to the 
approving official.
    (b) Signature. All contract approvals shall be signed:

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DEPARTMENT OF AGRICULTURE
(Name and Title)
For the Administrator 
Secs. 1700.45-1700.59  [Reserved]
Subpart E--Delegations of Authority; Agency Issuances and Certain 
Correspondence


Sec. 1700.60  Agency issuances.

    Except as may be specifically delegated from time to time to the 
Deputy Administrator, or others, all authority is reserved by the 
Administrator to approve and issue regulations and other information 
published in the Federal Register, bulletins, informational 
publications, staff instructions concerning Agency administrative 
matters and those affecting more than one program, and unnumbered 
memoranda (mailings to borrowers in more than one program and all REA 
staff). Signature authority is also reserved by the Administrator for 
written responses to Members of Congress, Governors, State Legislators, 
Federal Agency heads or Cabinet officials, as well as other controlled 
correspondence for Agency response. Additionally, signature authority 
is reserved by the Administrator for Agency mass mailings which include 
but are not limited to mailings to accountants, engineers, and 
consultants.


Sec. 1700.61  Agency publications control officer.

    The Deputy Administrator is designated the Agency Publications 
Control Officer.


Secs. 1700.62-1700.69  [Reserved]

Subpart F--Delegations; Authorities Reserved by the Administrator


Sec. 1700.70  General.

    Authority for all matters not specifically delegated in subparts D 
through L of this part, or by other written delegation, is reserved to 
the Administrator, including, without limitation, the following 
authorities reserved in this subpart.


Sec. 1700.71  Rural economic development loan and grant and distance 
learning and medical link grant programs.

    Approval of the following:
    (a) Applications for loans or grants when all conditions for such 
approval have been met.
    (b) All zero-interest loans and grants.
    (c) Any modifications in the method of carrying out loan purposes, 
or in the amount of applications selected and loans or grants approved.
    (d) Extension of principal and interest repayments for rural 
development purposes.


Sec. 1700.72  Electric program.

    (a) Approval of the following loans, loan guarantees, lien 
accommodations or subordinations:
    (1) All discretionary hardship loans.
    (2) All insured loans, loan guarantees, and lien accommodations or 
subordinations to finance operating costs.
    (3) All loans, loan guarantees, and lien accommodations or 
subordinations of more than $15,000,000 for distribution and power 
supply borrowers.
    (4) All loans, loan guarantees, and lien accommodations or 
subordinations for distribution borrowers that are members of a power 
supply borrower that is in default of its obligations to the Government 
or that is currently assigned to the Financial Services Staff, unless 
otherwise determined by the Administrator.
    (5) All insured loans, loan guarantees, and lien accommodations or 
subordinations that require an Environmental Impact Statement.
    (6) All certifications and findings required by the RE Act or other 
applicable laws and regulations, the placing and releasing of 
conditions precedent to the advance of funds, and all mortgages, loan 
contracts or other necessary documents relating to the authorities 
reserved in paragraph (a) of this section.
    (b) And execution of all loan contracts, mortgages or other 
documents in connection with loans, loan guarantees and lien 
accommodations approved by the Administrator.
    (c) Approval of the following for unpaid and outstanding loans and 
loan guarantees:
    (1) Rescission of loans or termination of loan guarantee 
commitments when the amount of the rescission or termination is more 
than $15,000,000.
    (2) Requests to extend the time period for advancing loan funds if:
    (i) The borrower is delinquent in payments on loans made or 
guaranteed by REA or in litigation that may affect loan security; or
    (ii) The request does not fully comply with the requirements 
specified in applicable REA regulations.
    (3) Extension of time of prepayment principal and interest pursuant 
to Section 12 of the RE Act, for borrowers in default or currently 
assigned to the Financial Services Staff.
    (4) Agreements, plans, arrangements, recommendations to settle 
debt, or other actions affecting a borrower's financial or other 
obligations to the Government through the Administrator of REA for 
loans, loan guarantees, or other financial obligations except as may be 
specifically delegated to the Financial Services Staff.
    (5) Loan budget adjustments (transfers or reclassifications) when 
approval is for:
    (i) Changes in generation facilities that are subject to a power 
survey or certification by REA;
    (ii) Any proposed change of more than $15,000,000;
    (iii) Any proposed operating costs.
    (d) Approval of the following for borrower facilities, 
organization, operations, or corporate status:
    (1) Agreements for the merger or consolidation of borrowers.
    (2) Power surveys or certifications by REA involving changes in 
generation facilities.
    (3) Contracts for the acquisition of plant-in-place of more than 
$15,000,000 and related financial transactions.
    (4) Approval, in amounts of $25,000,000 or more, of:
    (i) The use of general funds; or
    (ii) Sales or transfers of property and related releases of lien.
    (5) Equity development plans and amendments to equity development 
plans submitted by borrowers:
    (i) As part of an application for any loan and loan guarantee that 
requires approval of the Administrator;
    (ii) By any borrower whose equity as a percentage of total assets, 
is less than 10 percent at the time the plan is submitted, or whose 
equity is predicted to drop below 10 percent during the 10-year period 
of the plan.
    (6) Assumptions of debt.


Sec. 1700.73   Telephone program.

    (a) Approval of the following loans, loan guarantees, lien 
accommodations or subordinations:
    (1) All loans, loan guarantees, and lien accommodations or 
subordinations to finance operating costs.
    (2) All loans, loan guarantees, or lien accommodations or 
subordinations for more than $15,000,000.
    (3) Loans and loan guarantees with acquisition costs for more than 
$5,000,000.
    (4) Loans and loan guarantees containing funds to refinance 
outstanding debt amounts for more than $5,000,000.
    (b) All loan contracts, mortgages and other documents to be 
executed in connection with loans and loan guarantees approved by the 
Administrator.
    (c) Approval of the following for unpaid and outstanding loans and 
loan guarantees:
    (1) Extension of time for payment of principal and interest 
pursuant to Section 12 of the RE Act, for borrowers in default.
    (2) Agreements, plans, arrangements, recommendations to settle 
debt, or other actions affecting a borrower's financial or other 
obligations to the Government acting through the Administrator of REA 
for loans, loan guarantees or other financial obligations.
    (3) Complete releases of lien and satisfaction when a borrower has 
paid in full its indebtedness.
    (4) Sales and transfers of property for more than $5,000,000 and 
related releases of lien.


Secs. 1700.74-1700.89  [Reserved]

Subpart G--Delegations of Authority; Loan Review Committees


Sec. 1700.90   General.

    To assist in carrying out the authorities which are reserved or 
delegated in subparts D through L of this part, the roles of the 
following committees in this subpart are recognized.


Sec. 1700.91   Senior loan review committee.

    The Senior Loan Review Committee, appointed by the Administrator, 
shall review and make recommendations to the Administrator on all 
electric and telephone loans, loan guarantees, and lien accommodations 
or subordinations whose approval has been reserved by the 
Administrator. The committee shall be chaired by the Administrator and 
include the Assistant Administrator--Electric (AAE), Assistant 
Administrator--Telephone (AAT), and such other members as the 
Administrator may appoint.


Sec. 1700.92   Assistant Administrator's loan committee.

    Both the electric and telephone programs shall have Assistant 
Administrator's Loan Committees (AALC), consisting of the Regional 
Directors or Acting Regional Directors of the respective programs as 
well as additional members appointed by the appropriate Assistant 
Administrator. The AALC shall be chaired by either the appropriate 
Assistant Administrator or Deputy Assistant Administrator. The AALC 
shall meet as required to review, analyze, and concur in 
recommendations for actions to be taken for all loan application 
requests, loan guarantee applications, and lien accommodations or 
subordinations. The recommending official may not vote.
    (a) Assistant Administrators and Regional Directors may approve 
loans, loan guarantees, or lien accommodations or subordinations under 
Sec. 1700.124 or Sec. 1700.146 only after the AALC has concurred with 
such actions.
    (b) An Assistant Administrator may, in their sole discretion, 
forward a recommendation for a loan, loan guarantee or other financing 
action to the Senior Loan Committee for its consideration.


Sec. 1700.93   Rural economic development recommendation committee.

    The Administrator may appoint a recommendation committee for the 
purpose of reviewing loan and grant recommendations.


Secs. 1700.94-1700.99  [Reserved]

Subpart H--Delegations of Authority; Rural Economic Development, 
Program Support, and Borrower Accounting Activities


Sec. 1700.100   General.

    The following delegations of authority in this subpart are made by 
the Administrator.


Sec. 1700.101  Deputy Administrator.

    The Deputy Administrator in conformance with applicable regulations 
and REA policy is hereby delegated authority to exercise all 
authorities conferred upon other persons in Sec. 1700.102.


Sec. 1700.102   Assistant Administrator--Economic Development and 
Technical Services.

    The Assistant Administrator--Economic Development and Technical 
Services in conformance with applicable regulations and REA policy is 
delegated authority to exercise all authorities conferred upon others 
in Secs. 1700.103 through 1700.109, approval of staff instructions 
affecting only the Rural Development Program, and unnumbered memoranda 
(mailings to two or more borrowers) sent to rural development borrowers 
or grant recipients.


Sec. 1700.103   Director--Rural Development Assistance Staff.

    The Director--Rural Development Assistance Staff in conformance 
with applicable regulations and REA policy is delegated authority to 
approve for the Rural Economic Development Loan and Grant Programs and 
Distance Learning and Medical Link Grant Programs the following:
    (a) Releases of loan and grant funds including the approval of all 
agreements and documents between the REA borrower and the ultimate 
recipient.
    (b) Cancellation of applications that have not been selected for 
approval by the Administrator.
    (c) Rescission of loan and grant funds.
    (d) Extension of the time period for the REA borrower to meet the 
prerequisites to the advance of funds and the period to disburse the 
funds.
    (e) In addition, all authorities conferred upon other persons in 
Sec. 1700.104.


Sec. 1700.104   Chief, Financing Branch--Rural Development Assistance 
Staff.

    The Chief, Rural Development Assistance Staff--Financing Branch in 
conformance with applicable regulations and REA policy is delegated 
authority to approve and execute for the Rural Economic Development 
Loan and Grant and Distance Learning and Medical Link Grant Programs 
the following:
    (a) Reports of vouchers released; and
    (b) Notice to Financial Operations Division (FOD) authorizing the 
advance or release of funds.


Sec. 1700.105   Director, Borrower Accounting Division.

    The Director, Borrower Accounting Division in conformance with 
applicable regulations and REA policy is delegated authority to:
    (a) Approve a certified public accountant (CPA) for borrower audits 
of its financial statements.
    (b) Take actions concerning the selection or change of a borrower's 
CPA (7 CFR 1773.4).
    (c) Serve as the REA liaison within the Office of Inspector General 
(OIG) for all borrower irregularities.
    (d) In addition, execute all authorities conferred upon other 
persons in Secs. 1700.106 through 1700.108.


Sec. 1700.106  Chief, Technical Accounting and Auditing Staff.

    The Chief, Technical Accounting and Auditing Staff in conformance 
with Federal regulations and REA policy is delegated authority to 
approve or execute:
    (a) Actions concerning accounting policies, procedures, standards, 
interpretations of Financial Accounting Standards Board (FASB) 
issuances or other technical accounting issues; and
    (b) Actions concerning the application of generally accepted 
auditing standards to borrowers' accounts.


Sec. 1700.107   Chiefs, Area Accounting Branches.

    The Chiefs, Area Accounting Branches in conformance with Federal 
regulations and REA policy are delegated authority to approve or 
execute:
    (a) Statement of condition of borrower's records; and
    (b) In addition, all authorities conferred upon other persons in 
Sec. 1700.108.


Sec. 1700.108   Field Accountants.

    The Field Accountants in conformance with applicable regulations 
and REA policy are delegated authority to approve or execute:
    (a) Propriety of the disbursements of loan and equity funds as 
required by loan contract provisions and REA policy.
    (b) Adequacy of borrowers' accounting systems and related records.


Sec. 1700.109  Director--Program Support Staff.

    The Director--Program Support Staff in conformance with applicable 
regulations and REA policy is delegated authority to encumber loan 
funds for REA and RTB loans.


Secs. 1700.110-1700.119  [Reserved]

Subpart I--Delegations of Authority; Electric Program


Sec. 1700.120  General.

    The following delegations of authority are made by the 
Administrator to the electric program.


Sec. 1700.121  Deputy Administrator.

    The Deputy Administrator in conformance with applicable regulations 
and REA policy is delegated authority to approve or execute for the 
electric program:
    (a) Agreements or contracts for management or operations services 
between telephone and electric borrowers.
    (b) Federal Register notices announcing the availability of final 
Environmental Impact Statements and the approval of REA's final 
Environmental Impact Statements as well as Findings of No Significant 
Impact (FONSI).
    (c) In addition, all authorities conferred upon other persons in 
Sec. 1700.122.


Sec. 1700.122  Assistant Administrator--Electric.

    The Assistant Administrator--Electric in conformance with 
applicable regulations and REA policy is delegated authority to approve 
or execute for the electric program:
    (a) Approval of the following loans and necessary documents, except 
for those approvals reserved for the Administrator in Sec. 1700.72(a):
    (1) Approval of loans of $15,000,000 or less for entities not 
previously financed by REA.
    (2) Loans, loan guarantees, and lien accommodations or 
subordinations for distribution and power supply borrowers in amounts 
from $10,000,000 to $15,000,000.
    (b) The following actions for unpaid and outstanding loans:
    (1) Rescission of loans or termination of loan guarantee 
commitments when the amount of the rescission or termination is 
$15,000,000 or less.
    (2) Requests to extend the period for advancing loan funds in any 
amount except for:
    (i) Requests from borrowers that are delinquent in their loan 
payments to REA or in payments guaranteed by REA or in litigation that 
may affect loan security.
    (ii) Requests that do not comply with the requirements specified in 
applicable REA regulations.
    (iii) Cases where the Administrator has further reserved this 
authority.
    (3) Extension of time for payment of principal and interest 
pursuant to section 12 of the RE Act for other than Energy Conservation 
Resources Loans, except for requests from borrowers in default or 
currently assigned to FSS.
    (4) Loan budget adjustments (transfers or reclassifications) except 
when such adjustments would provide funds for:
    (i) Changes in generation facilities that are subject to a power 
survey certification.
    (ii) Any proposed change for more than $15,000,000.
    (iii) Any proposed operating costs.
    (5) Imposition of and release of special controls on loan fund 
advances when the borrower is delinquent in payments on REA loans or 
guarantees by REA or the borrower is in litigation that may affect loan 
security.
    (6) Questions arising from the interpretations or clarifications of 
the application of 7 CFR 1721.1 to individual borrower circumstances.
    (c) The following changes in borrowers' facilities, organization or 
corporate status:
    (1) Changes in transmission facilities not identified to REA at the 
time of loan approval that are subject to a power survey or 
certification by REA involving the use of construction or general funds 
of $15,000,000 or less.
    (2) Power survey or certification by REA involving changes in 
transmission facilities.
    (3) Contracts for the acquisition of plant-in-place of $15,000,000 
or less and related financial transactions.
    (4) Determination of the proper categorization of electric project 
proposals for the purpose of environmental review.
    (5) Execution of documents relating to inter-borrower assumption of 
indebtedness.
    (6) Approval in amounts of less than $25,000,000 of:
    (i) The use of general funds; or
    (ii) Sales or transfers of property and related releases of lien.
    (7) Approval or disapproval of the selection of a manager or 
attorney by an electric borrower.
    (d) Memoranda to electric staff or to two or more electric 
borrowers.
    (e) Approval of staff instructions affecting only the Electric 
Program.
    (f) Waivers of borrower requirements pursuant to 7 CFR part 1710, 
Subpart E--Power Requirements Studies.
    (g) All authorities conferred upon other persons in Sec. 1700.123.


Sec. 1700.123  Deputy Assistant Administrator--Electric.

    The Deputy Assistant Administrator--Electric in conformance with 
applicable regulations and REA policy is delegated authority to approve 
or execute for the electric program:
    (a) Any contracts for the acquisition of plant-in-place for 
$10,000,000 or less and related financial transactions.
    (b) The following matters concerning borrowers' facilities, 
organization or corporate structure:
    (1) Changes in borrowers' corporate status.
    (2) Power supply contracts and agreements including wholesale 
power, fuel, interconnections and wheeling agreements, participation 
agreements, lease agreements for facilities or properties, power sales 
agreements with non-RE Act beneficiaries, and integrated transmission 
agreements between REA borrowers and non-borrowers, any of which 
require a construction expenditure of more than $10,000,000.
    (c) Approvals required under the mortgage to retire capital credits 
or make other cash distributions in the following cases: (1) Any 
distribution borrower that does not meet the following conditions:
    (i) The retirement will not reduce total equity to less than 25 
percent of total assets and other debits;
    (ii) The oldest capital credits outstanding before the retirement 
are at least 10 years old where the retirement method is first-in, 
first-out, or the retirement is not more than 7 percent of all 
outstanding capital credits before the retirement where another method 
of retirement, authorized by the bylaws, is used; and
    (iii) TIER and DSC ratios exceed mortgage minimum, i.e., the 
average of the highest two of the last 3 years exceeds 1.5 for TIER and 
1.25 for DSC.
    (2) Any power supply borrower.
    (d) All authorities conferred upon other persons in Secs. 1700.124 
and 1700.131.


Sec. 1700.124  Regional Directors.

    Regional Directors in conformance with applicable regulations and 
REA policy are delegated authority to approve or execute for the 
electric program's distribution borrowers:
    (a) The following loans, loan guarantees, lien accommodations, and 
documents:
    (1) Insured loans, loan guarantees, and lien accommodations or 
subordinations in amounts of less than $10,000,000, except for those 
approvals reserved for the Administrator in Sec. 1700.72(a), or those 
reserved for the Assistant Administrator--Electric under 
Sec. 1700.122(a).
    (2) All certifications and findings required by the RE Act or other 
applicable laws and regulations, the imposing and releasing of 
conditions precedent to the advance of loan funds, and all mortgages, 
loan contracts or other documents relating to the delegations set forth 
in paragraph (a)(1) of this section.
    (b) The following matters for unpaid and outstanding loans:
    (1) Rescission of loans or termination of loan guarantee 
commitments when the amount of the rescission or termination is 
$10,000,000 or less, except for discretionary or operating loans.
    (2) Requests to extend the period for advancing loan funds when the 
amount of unadvanced loan funds is $10,000,000 or less, except for:
    (i) Requests from borrowers that are delinquent in their loan 
payments to REA or in loans guaranteed by REA or in litigation that may 
affect loan security.
    (ii) Requests that do not fully comply with the requirements 
specified in REA regulations.
    (iii) Cases where the Administrator has further reserved this 
authority.
    (3) Basis date agreements for all approved requests to extend the 
period for advancing loan funds.
    (4) Principal deferments under Section 12 of the RE Act for Energy 
Resource Conservation Loans and Rural Economic Development Investments.
    (5) Loan budget adjustments (reclassifications or transfers) except 
when such adjustments would provide funds for:
    (i) Changes in generation and transmission facilities that are 
subject to a power survey or certification by REA.
    (ii) Any change exceeding $10,000,000.
    (iii) Any operating costs.
    (6) Advance of loan funds under ``stop orders'' and ``special 
conditional agreements'' when the conditions have been met, except when 
the borrower is delinquent in its loan payments to REA, or its loans 
guaranteed by REA, or when the borrower is in litigation which may 
affect loan security or the Office of the Administrator has reserved 
this authority.
    (7) Imposition of special controls on the further advance of loan 
funds when it has been determined that loan feasibility may be 
jeopardized.
    (8) Complete releases of lien and satisfaction in cases where a 
borrower has repaid its indebtedness in full.
    (9) Approval of prepayments in accordance with 7 CFR part 1786 and 
all related documents.
    (c) Matters concerning borrower facilities, organization, or 
corporate status:
    (1) Agreements between electric borrowers for the operation of 
facilities.
    (2) Management and operating agreements between electric borrowers 
and subsidiary organizations engaged in rural development activities.
    (3) Sales and leases of borrowers' capital assets involving 
transactions in amounts of $5,000,000 or less and the related releases 
of lien.
    (4) Use of general funds by a borrower for plant additions in the 
amount of $5,000,000 or less, except for facilities subject to power 
supply surveys or certification by REA.
    (5) Annual review of loan security of borrowers.
    (6) Action concerning certain retirements of patronage capital and 
other cash distributions which meet the following conditions:
    (i) The retirement will not reduce total equity to less than 25 
percent of total assets and other debits;
    (ii) The oldest capital credits outstanding before the retirement 
are at least 10 years old where the retirement method is first-in, 
first-out, or the retirement is not more than 7 percent of all 
outstanding capital credits before the retirement where another method 
of retirement, authorized by the bylaws, is used; and
    (iii) TIER and DSC ratios exceed mortgage minimum, i.e., the 
average of the highest two of the last 3 years exceeds 1.5 for TIER and 
1.25 for DSC.
    (7) Approval as a majority note holder of employment contracts 
between a borrower and its general manager.
    (8) Waiver of specified defects in title to property obtained by 
borrowers.
    (9) All equity development plans and amendments to equity 
development plans except those requiring approval of the Administrator.
    (10) Any contracts for the acquisition of plant-in-place of 
$5,000,000 or less and related financial transactions.
    (d) Letters certifying borrowing eligibility for non-borrower 
electric cooperatives seeking financing from the Bank for Cooperatives.
    (e) In addition, all authorities conferred upon other persons in 
Secs. 1700.125, 1700.126 and 1700.130.


Sec. 1700.125  Chiefs, Regional Engineering Branches.

    The Chiefs, Regional Engineering Branches in conformance with 
applicable regulations and REA policy are delegated authority to 
approve or execute for the electric program with respect to 
distribution and transmission facilities for distribution borrowers:
    (a) The following matters concerning unpaid and outstanding loans 
and loan guarantees:
    (1) Financial requirements and expenditure statements when all 
conditions precedent to the advance of loan funds have been met, no 
litigation is pending pertaining to the loan or loan guarantee, the 
borrower is not delinquent in its loan payments to REA or in loans 
guaranteed by REA, and the Office of the Administrator has not reserved 
this authority.
    (2) Report of vouchers released.
    (3) Concurrent loan fund requisitions.
    (b) The following matters concerning technical specifications, and 
borrower facilities and organization, except for matters concerning 
generation facilities:
    (1) Selection by a borrower of an architect; plans and 
specifications, work orders, and contracts for architectural services 
for the construction of headquarters, garage, and warehouse facilities 
requiring REA approval, and final inventory documents and payments to 
contractors and architects.
    (2) Selection by a borrower of an engineer and contracts for 
engineering services in cases requiring REA approval.
    (3) Contracts for construction and right-of-way clearing and for 
the purchase of substation sites and Headquarters facility sites with 
clear title and special types of equipment requiring REA approval.
    (4) Final inventory documents and payments to contractors and 
engineers.
    (5) Use of nonstandard drawings, materials, and equipment.
    (6) Technical engineering studies for transmission, load 
management, microwave, Supervisory Control and Data Acquisition (SCADA) 
and other facilities requiring REA approval.
    (7) Borrowers' selection of a method of construction.
    (8) Plans and specifications for construction, preliminary design 
data and plans, and profile sheets.
    (9) Negotiation in lieu of competitive bidding of borrowers' 
contracts.
    (10) Award of contracts for construction of purchase of material 
and equipment with fewer than three bids.
    (11) Long-range engineering plans.
    (12) Borrowers' environmental reports.
    (13) Amendments to all types of power supply contracts or 
agreements including extensions of time to existing contracts and 
superseding contracts with no significant changes; the addition of new 
delivery points; and modification of existing delivery points between 
distribution borrowers and non-REA borrower power suppliers, except 
where facilities are subject to a power survey or certification by REA.
    (14) Final statements of engineering fees requiring REA approval, 
except for generation facilities.
    (c) In addition, all other authorities of an engineering nature 
pertaining to distribution and transmission conferred upon other 
persons in Sec. 1700.130.


Sec. 1700.126  Chiefs, Area Operations Branches.

    The Chiefs, Area Operations Branches in conformance with applicable 
regulations and REA policy are delegated authority to approve or 
execute for the electric program's distribution borrowers:
    (a) The following matters with unpaid and outstanding distribution 
loans.
    (1) Affidavits, certificates, filings, and confirmation statements 
with respect to the recording, filing or renewing of security 
instruments, including financing statements under the Uniform 
Commercial Code of the applicable state.
    (2) Municipal and county franchises, licenses, ordinances, and 
permits to construct or operate facilities obtained by borrowers as 
required by its security instruments.
    (3) Notice of clearance of REA loan documents.
    (b) Matters concerning borrower facilities, organization, or 
corporate status:
    (1) Sales and leases of borrower's capital assets involving 
transactions in amounts of $500,000 or less, except for facilities 
subject to power supply surveys or certification by REA.
    (2) Partial releases of lien, associated with sales of a borrower's 
capital assets, involving transactions in amounts of $500,000 or less.
    (3) Approval of large retail power contracts which have not been 
delegated to the General Field Representatives--Electric.


Sec. 1700.127   Director--Power Supply Division.

    The Director--Power Supply Division in conformance with applicable 
Regulations and REA policy is delegated authority to approve or execute 
for the electric program's power supply borrowers:
    (a) Approval of the following loans, loan guarantees, and loan 
documents:
    (1) Approval of insured loans, loan guarantees, and lien 
accommodations or subordinations in amounts of less than $10,000,000 
for power supply borrowers, except for those approvals reserved for the 
Administrator in Sec. 1700.72(a).
    (2) All certifications and findings required by the RE Act or other 
applicable laws and regulations, the placing and releasing of 
conditions precedent to the advance of funds, and all mortgages, loan 
contracts or other documents relating to the delegations set forth in 
paragraph (a)(1) of this section.
    (b) The following matters for unpaid and outstanding loans:
    (1) Rescission of loans or termination of loan guarantee 
commitments when the amount of the rescission or termination is 
$10,000,000 or less, except for discretionary or operating loans.
    (2) Requests to extend the period for advancing loan funds when the 
amount of unadvanced loan funds is $10,000,000 or less, except for:
    (i) Requests from borrowers that are delinquent in their loan 
payments to REA, loans guaranteed by REA or in litigation that may 
affect loan security.
    (ii) Requests that do not fully comply with the requirements 
specified in REA regulations.
    (iii) Cases where the Administrator has further reserved this 
authority.
    (3) Execution of basis date agreements for all approved requests to 
extend the period for advancing loan funds.
    (4) Loan budget adjustments (reclassifications or transfers) except 
when such adjustments would provide funds for:
    (i) Changes in generation and transmission facilities that are 
subject to a power survey or certification by REA.
    (ii) Any proposed change for more than $10,000,000.
    (iii) Any proposed operating costs.
    (5) Advance of loan funds under ``stop orders'' and ``special 
conditional agreements'' when the conditions have been met, except when 
the borrower is delinquent in its loan payments to REA, loan guaranteed 
by REA or when the borrower is in litigation which may affect loan 
security or the Administrator has reserved this authority.
    (6) Imposition of special controls on the advance of loan funds 
when it has been determined that loan feasibility may be jeopardized.
    (7) Approval of prepayments in accordance with 7 CFR part 1786 and 
all related documents.
    (8) Complete releases of lien when a borrower has paid in full its 
indebtedness.
    (9) Approval of mortgages for refinancing transactions, regardless 
of amount.
    (c) Matters concerning borrower facilities, organization, or 
corporate status:
    (1) Agreements between electric borrowers for operation of 
facilities.
    (2) Management and operating agreements between electric borrowers 
and subsidiary organizations engaged in rural development activities.
    (3) Sales and leases of borrowers' capital assets involving 
transactions in amounts of $10,000,000 or less and the related releases 
of lien.
    (4) Use of general funds by a borrower for plant additions in the 
amount of $10,000,000 or less, except for facilities subject to power 
supply surveys or certification by REA.
    (5) Annual review of loan security of power supply borrowers.
    (6) Approval as a majority noteholder of employment contracts 
between a borrower and its general manager.
    (7) Wholesale power electric rates in connection with power supply 
contracts.
    (8) Waiver of specified defects in title to property obtained by 
power supply borrowers.
    (9) Interconnection Agreements, Wheeling Agreements, non firm Power 
Sales or Purchase Agreements requiring a construction expenditure of 
$10,000,000 or less.
    (10) Firm Power Sale or Purchase Agreements with a duration of 3 
years or less, which require a construction expenditure of $10,000,000 
or less.
    (11) Participation agreements with other utilities on jointly owned 
facilities for new transmission, subtransmission or distribution 
facilities requiring an expenditure of $10,000,000 or less.
    (12) Participation agreements with other utilities on jointly owned 
facilities for generation modifications to existing plant requiring an 
expenditure of $10,000,000 or less.
    (13) Any contracts for the acquisition of plant-in-place of 
$5,000,000 or less and related financial transactions.
    (d) In addition, all authorities conferred upon other persons in 
Secs. 1700.128 and 1700.129.


Sec. 1700.128   Chief, Operations Branch, Power Supply Division.

    The Chief, Operations Branch, Power Supply Division in conformance 
with applicable Regulations and REA policy is delegated authority to 
approve or execute for the electric program:
    (a) The following matters dealing with outstanding power supply 
loans.
    (1) Affidavits, certificates, filings, and continuation statements 
with respect to the recording, filing or renewing of mortgages and 
deeds of trust, including financing statements under the Uniform 
Commercial Code of the applicable state.
    (2) Municipal and county franchises, licenses, ordinances, and 
permits to construct or operate facilities obtained by borrowers as 
required by the mortgage.
    (3) Notice of Clearance of REA loan documents.
    (4) Approval of large retail power contracts.
    (5) Sales, transfers, and partial releases of liens involving sales 
of borrowers' capital assets with a value of $500,000 or less.
    (b) The following matters concerning unpaid and outstanding loans:
    (1) Financial requirements and expenditure statements when all 
conditions precedent to the advance of loan funds have been met, no 
litigation is pending pertaining to the loan, the borrower is not 
delinquent in its loan payments to REA, loans guaranteed by REA and the 
Administrator has not reserved this authority.
    (2) Report of vouchers released.
    (3) Concurrent loan fund requisitions.


Sec. 1700.129   Chiefs, Power Engineering Branches, Power Supply 
Division.

    The Chiefs, Power Engineering Branches, Power Supply Division in 
conformance with applicable Regulations and REA policy are delegated 
authority to approve or execute for the electric program for electric 
power supply borrowers:
    (a) The following matters concerning technical specifications, and 
borrower facilities and organizational issues for power supply 
borrowers:
    (1) Selection by a borrower of an engineer or architect; plans and 
specifications, work orders, preliminary design data, plans and profile 
sheets, and contracts for architectural and all engineering services 
for facilities requiring REA approval, and final inventory documents 
and payments to contractors and architects.
    (2) Borrowers' selection of method of construction.
    (3) Final statements of engineering fees.
    (4) Purchase of generating plant sites.
    (5) Technical engineering studies for generation facilities.
    (6) Contracts for the construction and purchase of materials and 
equipment for generation and transmission facilities.
    (7) Use of nonstandard specifications, drawings, materials and 
equipment.
    (8) Negotiation in lieu of competitive bidding of borrowers' 
contracts.
    (9) Award of contracts for construction or purchase of materials 
and equipment with fewer than three bids.
    (10) Amendments to power supply contracts or agreements including 
extensions of time to existing contracts; the addition of new delivery 
points; and modification of existing delivery points, except where 
facilities are subject to a power survey or certification by REA.
    (11) Contracts for construction and right-of-way clearing and for 
the purchase of substation sites with clear title and special types of 
equipment requiring REA approval.
    (12) Long-range engineering plans.
    (13) Borrower environmental reports.
    (14) Interchange agreements and similar agreements where no 
construction is required.
    (15) Interconnection agreements where no construction is required.
    (16) Construction Work Plan (CWP) approval for G&T borrowers
    (b) The following matters pertaining to the generation facilities 
of distribution borrowers:
    (1) Selection by a borrower of an engineer or architect; plans and 
specifications, work orders, preliminary design data, plans, and 
contracts for architectural and all engineering services for facilities 
requiring REA approval, and final inventory documents and payments to 
contractors and architects.
    (2) Borrowers' selection of method of construction.
    (3) Final statements of engineering fees.
    (4) Purchase of generating plant sites.
    (5) Technical engineering studies for generation facilities.
    (6) Contracts for the construction and purchase of materials and 
equipment for generation facilities.
    (7) Use of nonstandard specifications, drawings, materials and 
equipment.
    (8) Negotiation in lieu of competitive bidding of borrowers' 
contracts.
    (9) Award of contracts for construction or purchase of materials 
and equipment with fewer than three bids.
    (10) The borrower's generation portion of the CWP.


Sec. 1700.130  General Field Representatives--Electric.

    The General Field Representatives--Electric in conformance with 
applicable regulations and REA policy are delegated authority to 
approve or execute for the electric program:
    (a) Cost estimates and facilities for distribution borrowers' large 
power applications.
    (b) Use of armless or narrow profile construction for distribution 
in scenic areas or where right-of-way is restricted.
    (c) Certificates of completion for distribution and transmission 
contract construction.
    (d) Power requirements and irrigation studies for distribution 
borrowers:
    (1) Without generation facilities;
    (2) With an ownership or lease interest in REA financed generation 
facilities of less than 40 MW nameplate rating as set forth in ``REA 
Financed Generating Plants,'' Information Publication (IP) 200-2, or 
its equivalent. This publication is available from Publications and 
Directives Management Branch, Administrative Services Division, Rural 
Electrification Administration, room 0180, South Building, U.S. 
Department of Agriculture, Washington, DC 20250-1500;
    (3) With an ownership or lease interest in REA financed generation 
facilities of 40 MW or more, provided the borrower has not received REA 
financial assistance for generation capacity of 40 MW or more within 15 
years of the borrower's request for REA approval of its Power 
Requirements Study; or
    (4) That are members of a power supply borrower when the member 
study is not prepared as part of the power supply borrower's Power 
Requirements Study.
    (e) Amendments to or revisions of previously approved power 
requirements or irrigation studies for distribution borrowers which are 
members of a power supply borrower when the amendment or revision is 
for support of a new loan application to be submitted by the member 
prior to REA's approval of a new power-supply Power Requirements Study.
    (f) Distribution facilities in construction work plans including 
amendments and voltage drop, sectionalizing and power factor studies 
solely for distribution borrowers.
    (g) Long-range financial forecasts prepared for distribution 
borrowers.
    (h) Approval, for distribution borrowers, of large retail power 
contracts for which the borrower's investment in plant facilities does 
not exceed 10 percent of total utility plant except for distribution 
borrowers which are members of an REA financed power supply borrower 
which is in default under its loan repayments or whose debt has been 
restructured.


Sec. 1700.131  Director, Electric Staff Division.

    The Director, Electric Staff Division in conformance with 
applicable regulations and REA policy is delegated authority to approve 
the following:
    (a) Power Requirements Studies for:
    (1) All power supply borrowers.
    (2) All members of a power supply borrower when the members' 
studies were prepared as part of the power supply borrower's Power 
Requirements Study.
    (3) Distribution borrowers with an ownership or lease interest in 
generating facilities of 40 MW or more nameplate rating as set forth in 
REA Financed Generating Plants (IP 200-2), or its equivalent, provided 
the borrower has received REA financial assistance for generating 
capacity of 40 MW or more within 15 years of the borrower's request for 
REA approval of its Power Requirements Study.
    (b) Approval of Integrated Resource Plans for power supply and 
distribution systems and Demand Side Management plans for distribution 
systems.


Sec. 1700.132  Technical Standards Committees ``A'' and ``B''--
Electric.

    The Technical Standards Committees ``A'' and ``B''--Electric in 
conformance with applicable regulations and REA policy are delegated 
authority to approve for the electric program:
    (a) Technical Standards Committee ``A''--Electric accepts or 
rejects all proposals of standard specifications, drawings, material 
and equipment submitted for acceptance for use in REA financed electric 
systems.
    (b) Technical Standards Committee ``B''--Electric reviews and makes 
a final decision on cases referred to it by either Committee A or by 
appeal from a sponsor from an adverse decision made by Committee A.


Secs. 1700.133-1700.139  [Reserved]

Subpart J--Delegations of Authority; Telephone Program


Sec. 1700.140  General.

    The delegations in this subpart relating to the REA telephone 
program also apply to the Rural Telephone Bank (RTB).


Sec. 1700.141  General delegations.

    The following delegations of authority for the telephone program in 
this subpart are made by the Administrator.


Sec. 1700.142  Deputy Administrator.

    The Deputy Administrator in conformance with applicable regulations 
and REA policy is delegated authority to approve or execute for the 
telephone program:
    (a) Agreements or contracts covering management or operations 
services between telephone and electric borrowers.
    (b) Federal Register notices announcing the availability of final 
Environmental Impact Statements and the approval of REA's final 
Environmental Impact Statements as well as Findings of No Significant 
Impact (FONSI).
    (c) In addition, all authorities conferred upon other persons in 
Sec. 1700.143.


Sec. 1700.143  Assistant Administrator--Telephone.

    The Assistant Administrator--Telephone in conformance with 
applicable regulations and REA policy is delegated authority to approve 
or execute for the telephone program:
    (a) Loans, loan guarantees and lien accommodations or 
subordinations of between $7,500,000 and $15,000,000 except for those 
reserved for the Administrator in Sec. 1700.73(a).
    (b) Loans and loan guarantees with acquisition costs between 
$2,000,000 and $5,000,000.
    (c) Loans and loan guarantees with refinancing amounts between 
$2,000,000 and $5,000,000.
    (d) Approval of the following matters concerning unpaid and 
outstanding loans:
    (1) Basis date agreements or agreements for extension of advances 
and related recommendations;
    (2) Budget adjustments for loans made by the Administrator and loan 
budget adjustments amounting to more than $2,000,000.
    (e) Approval of the following concerning borrower facilities, 
organization or corporate status:
    (1) Field trial installations of telephone materials and equipment 
involving more than $250,000;
    (2) Approval of the purchase price of properties to be acquired by 
telephone borrowers when the purchase price exceeds REA approved 
appraisal value;
    (3) Contracts between $2,000,000 and $5,000,000 for acquisition by 
telephone borrowers of existing facilities in place;
    (4) Approval of sales of property and related partial releases of 
lien in amounts greater than $500,000 up to $5,000,000;
    (5) Approval of the investment in an affiliate which exceeds the 
allowable distribution level of more than $50,000;
    (6) Action concerning disapproval of the selection of a manager or 
an attorney by a telephone borrower;
    (7) Agreements for the merger or consolidation of REA telephone 
borrowers; and
    (8) Waiver of mortgage provisions for payments of dividends or 
other cash distributions, where such excess payments or distributions 
exceed $50,000 in any year.
    (f) Memoranda to telephone staff or to two or more telephone 
borrowers.
    (g) Reports and invoices for more than $100,000 under contracts 
covering research services performed for REA in connection with the 
telephone program.
    (h) Approval of staff instructions affecting only the Telephone 
Program.
    (i) All authorities conferred upon other persons in Sec. 1700.144.


Sec. 1700.144  Deputy Assistant Administrator--Telephone.

    The Deputy Assistant Administrator--Telephone in conformance with 
applicable regulations and REA policy is delegated authority to approve 
or execute for the telephone program:
    (a) Revisions of the borrower's capital structure by amendment to 
its charter or bylaws or by issuance of additional shares of stock.
    (b) In addition, all authorities conferred upon other persons in 
Secs. 1700.145 and 1700.149.


Sec. 1700.145  Regional Directors.

    The Regional Directors in conformance with applicable regulations 
and REA policy are delegated authority to approve or execute for the 
telephone program:
    (a) The following loans, loan guarantees, and lien accommodations 
or subordinations except for those approvals reserved by the 
Administrator in Sec. 1700.73(a):
    (1) Loans, loan guarantees and lien accommodations or 
subordinations of $7,500,000 or less.
    (2) Loans and loan guarantees with acquisition costs of less than 
$2,000,000.
    (3) Loans and loan guarantees containing refinancing for less than 
$2,000,000.
    (b) The following loan documents and related actions:
    (1) Interim financing requests.
    (2) Special loan contract conditions, except for changes in such 
conditions for loans made by the Administrator or the Assistant 
Administrator.
    (3) Waivers of contract conditions for release of funds.
    (4) Loan designs.
    (5) Characteristics letters to loan applicants setting forth loan 
requirements proposed for inclusion in pending loan recommendations.
    (6) Loan contracts and security instruments, except for loans made 
by the Administrator.
    (c) The following matters concerning outstanding loans:
    (1) Telephone loan fund releases.
    (2) Telephone loan rescissions.
    (3) Loan budget adjustments, except for:
    (i) Loans approved by the Administrator.
    (ii) Adjustments greater than $2,000,000.
    (4) The placement of special controls on the advance of loan funds 
when it has been determined that loan security may be affected, except 
when the Administrator has further reserved this authority.
    (5) Advance of loan funds under ``special conditional agreements'' 
and special controls when the conditions have been met, except when the 
Administrator has reserved this authority.
    (6) Lien accommodations or subordinations granted to other parties 
by REA or the RTB for amounts of less than $7,500,000.
    (7) Principal deferments under Section 12 of the RE Act for Rural 
Economic Development Investments.
    (d) The following matters concerning borrower facilities, 
organization, and corporate status:
    (1) Increases in salaries and other compensations to be paid to 
borrowers' officers, directors and managers when REA approval is 
required under the mortgage.
    (2) Borrowers' requests to waive competitive bidding procedures.
    (3) Award of contracts (bid approval) for construction and central 
office equipment.
    (4) Selection by telephone borrowers of force account engineering 
and construction.
    (5) Waiver of specified special defects in title and rights-of-way.
    (6) Field trial installations of telephone materials and equipment 
involving $250,000 or less, jointly with Director, Telecommunications 
Standards Division (TSD).
    (7) Waiver of mortgage provisions relating to a borrower's payment 
of dividends or other cash distributions when such excess payments or 
distributions do not exceed $50,000 in any year.
    (8) Approval of the investment in an affiliate of general funds 
that is within the allowable distribution level.
    (9) Approval of sales or transfers of property and related partial 
releases of lien of more than $100,000 up to $500,000.
    (10) Contracts for acquisition by telephone borrowers of existing 
facilities in place of less than $2,000,000.
    (11) Approval of employment contracts with the borrower's general 
manager.
    (12) Management and operating agreements. When the borrowers 
involved are in more than one region, both directors must approve.
    (13) Use of materials, equipment, and specifications not yet 
accepted by REA.
    (14) Letters certifying borrowing eligibility for non-borrower 
telephone organizations seeking financing from the Bank for 
Cooperatives.
    (15) In addition, all authorities conferred upon other persons in 
Secs. 1700.146, 1700.147, 1700.148.


Sec. 1700.146  Chiefs, Regional Engineering Branches--Telephone.

    The Chiefs, Regional Engineering Branches--Telephone in conformance 
with applicable regulations and REA policy are delegated authority to 
approve or execute for the telephone program:
    (a) The following matters for unpaid and outstanding loans:
    (1) Financial Requirement Statements, REA Form 481; and
    (2) Construction loan budget adjustments except those involving 
change of loan budget purposes or new or revised administrative 
findings.
    (b) The following matters concerning technical specifications and 
borrower facilities and organization:
    (1) The selection by a borrower of an engineer or an architect and 
contracts for engineering and architecture services;
    (2) Final inventory documents and payments to contractors and 
engineers;
    (3) Statements of final engineering fees;
    (4) Borrowers' proposals and cost estimates for force account 
engineering and construction;
    (5) Plans and specifications for central office equipment, radio, 
and microwave equipment, garage and warehouse buildings and for 
nonstandard central office equipment buildings;
    (6) All major construction contracts. Major construction shall be 
defined as any project estimated to cost more than $250,000 in total;
    (7) Borrowers' proposals for purchase of additions and 
modifications to central office equipment;
    (8) Borrowers' Environmental Reports; and
    (9) Borrowers' Outside Plant Layouts.
    (c) In addition, all authorities conferred upon other persons in 
Sec. 1700.148.


Sec. 1700.147  Chiefs, Regional Operations Branches--Telephone.

    The Chiefs, Regional Operations Branches--Telephone in conformance 
with applicable regulations and REA policy are delegated authority to 
approve or execute for the telephone program:
    (a) The following matters concerning unpaid and outstanding loans:
    (1) Affidavits, certificates, filings, and continuation statements 
with respect to the recording, filing or renewing of mortgages and 
deeds of trust, including financing statements under the Uniform 
Commercial Code of the applicable state after clearance when necessary 
by OGC;
    (2) Municipal and county franchises obtained by borrowers from the 
standpoint of acceptability for REA loans;
    (3) State regulatory body orders and approvals from the standpoint 
of acceptability for REA loans;
    (4) Special legal fees to be paid by borrowers from loan funds; and
    (5) Non-construction loan budget adjustment items, except those 
involving legal or policy questions or new or revised administrative 
findings.
    (b) The following matters concerning borrower organization or 
corporate or capital structure:
    (1) Certificates regarding a borrower's incorporation and Articles 
of Incorporation and Bylaws and changes in a borrower's corporate name;
    (2) Forms of stock and equity certificates;
    (3) Borrowers' cash sales of material and equipment, excluding 
property in place, when approval is required and releases of lien and 
all other documents relating to such sales;
    (4) Borrowers' insurance and fidelity coverage;
    (5) Borrowers' lease agreements except for agreements and contracts 
between borrowers and affiliates;
    (6) Approval, in amounts up to $100,000 of sales of property and 
related partial releases of lien; and
    (7) Purchase or lease of real estate by borrowers.
    (c) In addition, all authorities conferred upon other persons in 
Sec. 1700.148.


Sec. 1700.148  General Field Representatives--Telephone.

    The General Field Representatives--Telephone in conformance with 
applicable regulations and REA policy are delegated authority to 
approve or execute for the telephone program:
    (a) Plans and specifications for REA standard Form 772, central 
office buildings, or borrower specific standardized central office 
building plans and specifications, repeaters, standardized lightwave 
equipment, subscriber carrier and trunk carrier. Also, outside plant 
plans and specifications that conform to an approved design.
    (b) Outside plant contracts up to $250,000 and all other 
construction and equipment contracts less than $100,000.
    (c) Results of the Area Coverage Survey.


Sec. 1700.149  Director--Telecommunications Standards Division.

    The Director--Telecommunications Standards Division in conformance 
with applicable regulations and REA policy is delegated authority to 
approve or execute for the telephone program:
    (a) Reports and invoices up to $100,000 submitted under contracts 
covering research services performed for REA in connection with the 
telephone program.
    (b) Field trial installations of telephone materials and equipment 
involving $250,000 or less, jointly with the appropriate regional 
director.


Sec. 1700.150  Technical Standards Committees ``A'' and ``B''--
Telephone.

    The Technical Standards Committees ``A'' and ``B''--Telephone in 
conformance with applicable regulations and REA policy are delegated 
authority to approve for the telephone program:
    (a) Technical Standards Committee ``A''--Telephone accepts or 
rejects all proposals of standard specifications, drawings, material 
and equipment submitted for acceptance for use on REA financed 
telephone systems.
    (b) Technical Standards Committee ``B''--Telephone reviews and 
makes a final decision on cases referred to it by Committee ``A'' or by 
appeal from a sponsor from an adverse decision of Committee ``A''.


Secs. 1700.151-1700.159  [Reserved]

Subpart K--Delegations of Authority; Financial Services


Sec. 1700.160  General.

    The following delegations of authority in this subpart are made by 
the Administrator to the Financial Services Staff for assigned loan 
servicing projects.


Sec. 1700.161  Program Advisor, Financial Services Staff.

    The Program Advisor, Financial Services Staff in conformance with 
applicable regulations and REA policy is delegated authority to approve 
and execute for the Financial Services Staff (FSS):
    (a) Approval in amounts of less than $25,000,000 for:
    (1) The use of general funds; or
    (2) Sales and transfers of property and related releases of lien.
    (b) Disapproval of the selection of a manager or attorney by a 
borrower.
    (c) Power supply contracts and agreements including wholesale 
power, fuel, interconnections, wheeling, participation agreements, 
lease agreements for facilities or properties, and power sales 
agreements with non-RE Act beneficiaries.
    (d) Wholesale power rates.
    (e) Contracts for the construction and purchase of materials and 
equipment.
    (f) Retail rate contracts between borrowers and others relating to 
large power installations.
    (g) Additional authorities, as specifically delegated by the 
Administrator, necessary to effectively resolve troubled borrower 
situations.
    (h) Authority to execute or testify, consistent with USDA 
Departmental Regulations, on behalf of REA as follows:
    (1) Affidavits and certificates concerning borrowers assigned to 
FSS.
    (2) Testify on behalf of the Agency before regulatory bodies or 
courts on matters pertaining to borrowers assigned to the FSS.


Sec. 1700.162-1700.169  [Reserved]

Subpart L--Delegations of Authority; Financial Operations 
Activities


Sec. 1700.170  General.

    The following delegations of authority in this subpart are made by 
the Administrator to the Financial Operations Division (FOD).


Sec. 1700.171  Deputy Administrator.

    The Deputy Administrator in conformance with applicable regulations 
and REA policy is delegated authority to approve or execute for FOD all 
authorities conferred upon other persons in this subpart.


Sec. 1700.172  Director, Financial Operations Division.

    The Director, Financial Operations Division in conformance with 
applicable regulations and REA policy is delegated authority to approve 
and execute for FOD:
    (a) Standard Form 1151, Nonexpendable Transfer Authorization, for 
the following activities related to loans made to the Administrator of 
REA by the Secretary of Treasury under authority of section 3(a) and 
304 of the RE Act:
    (1) Advances of principal on notes executed by the Administrator; 
and
    (2) Payment of principal on loans made by the Administrator.
    (b) Letters to the Federal Financing Bank (FFB) granting REA 
approval to requests from borrowers, which are concurred in by the 
applicable Regional Director in the Electric or Telephone program for:
    (1) Extensions of short-term maturity dates of advances on the 
specified maturity date;
    (2) Prepayment of short-term maturities, including prepayment for 
the purpose of extending to long-term prior to the scheduled maturity 
date; and
    (3) Prepayments of long-term maturities.
    (c) Endorsements or assignments on promissory notes or other 
collateral pledged by borrowers as security for loans, as may be 
necessary in connection with the return of such documents to borrowers, 
due to the payment of the obligations in full or in order that the 
borrowers may institute legal action thereon or in connection therewith 
and the transmittal to the borrowers of such promissory notes or other 
collateral pledged by the borrower.
    (d) Cancellation or endorsement due to payment on the borrowers' 
notes which have been paid in full or which are to be returned to 
borrowers by reason of the cancellation of such notes resulting from 
the receipt of REA of funding, renewal or substituted notes and 
transmittal to the borrower.
    (e) Actions concerning borrower loan accounting, computations, 
procedures and policies.
    (f) Liaison responsibility with the Federal Financing Bank, the 
Department of Treasury.
    (g) Liaison responsibility with General Accounting Office (GAO).
    (h) In addition, all authorities conferred upon other persons in 
Sec. 1700.173.


Sec. 1700.173  Chief, Loans Receivable Branch.

    The Chief, Loans Receivable Branch in conformance with applicable 
regulations and REA policy is delegated authority to approve and 
execute for FOD:
    (a) Preparation and forwarding of Energy Resource Conservation 
(ERC) loan documents to the Office of the General Counsel (OGC).
    (b) Preparation and forwarding of basis date agreements to OGC.


Sec. 1700.174--1700.189  [Reserved]

    Dated: April 19, 1994.
Bob J. Nash,
Under Secretary, Small Community and Rural Development.
[FR Doc. 94-9967 Filed 4-25-94; 8:45 am]
BILLING CODE 3410-15-P