[Federal Register Volume 59, Number 121 (Friday, June 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15365]


[[Page Unknown]]

[Federal Register: June 24, 1994]


                                                   VOL. 59, NO. 121

                                              Friday, June 24, 1994

DEPARTMENT OF AGRICULTURE

Farmers Home Administration

7 CFR Part 1980

RIN 0575-AB84

 

Business and Industrial Loan Program

AGENCY: Farmers Home Administration, USDA.

ACTION: Proposed rule.

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SUMMARY: The Farmers Home Administration (FmHA) proposes to amend its 
Business and Industry loan servicing regulations. The action is 
necessary to clarify the procedure for categorizing & classifying loans 
according to payment frequency criteria. The intended effect is to 
clarify procedures for classifying and categorizing loan payment 
history.

DATES: Comments must be submitted on or before August 23, 1994.

ADDRESSES: Submit written comments in duplicate to the Office of the 
Chief, Regulations Analysis and Control Branch, Farmers Home 
Administration, U.S. Department of Agriculture, room 6348, South 
Agriculture Building, 14th and Independence Avenue SW., Washington, DC 
20250-0700. All written comments made pursuant to this notice will be 
available for public inspection during regular working hours at the 
above address.

FOR FURTHER INFORMATION CONTACT: Kenneth E. Hennings, Senior Loan 
Specialist, Business and Industry Division, Rural Development 
Administration, U.S. Department of Agriculture, room 6337, South 
Agriculture Building, 14th Street and Independence Avenue, SW., 
Washington, DC 20250-0700, Telephone: (202) 690-3809.

SUPPLEMENTARY INFORMATION:

Classification

    This proposed rule has been determined to be not-significant for 
purposes of Executive Order 12866 and therefore has not been reviewed 
by the Office of Management and Budget (OMB).

Programs Affected

    The Catalog of Federal Domestic Assistance program impacted by this 
action is: 10.768, Business and Industrial Loans.

Intergovernmental Review

    The Business and Industrial Loan programs are subject to the 
provisions of Executive Order 12372 which requires intergovernmental 
consultation with State and local officials. FmHA and RDA conduct 
intergovernmental consultation in the manner delineated in FmHA 
Instruction 1940-J, ``Intergovernmental Review of Farmers Home 
Administration Programs and Activities.''

Civil Justice Reform

    This document has been reviewed in accordance with Executive Order 
12778. It is the determination of RDA and FmHA that this action does 
not unduly burden the Federal Court System in that it meets all 
applicable standards provided in section 2 of the Executive Order.

Paperwork Reduction Act

    The information collection requirements contained in this 
regulation have been approved by the Office of Management and Budget 
(OMB) under the provisions of 44 U.S.C. Chapter 35 and have been 
assigned OMB control number 0575-0029 in accordance with the Paperwork 
Reduction Act of 1980. This proposed rule does not revise or impose any 
new information collection or recordkeeping requirement from those 
approved by OMB.

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR Part 1940, 
subpart G, ``Environmental Program.'' FmHA and RDA have determined that 
this action does not constitute a major Federal action significantly 
affecting the quality of the human environment, and in accordance with 
the National Environmental Policy Act of 1969, Public Law 91-190, an 
Environmental Impact Statement is not required.

Background

    The regulations for Business and Industrial guaranteed loans 
require the lender to classify each loan in accordance with specific 
criteria set out in the regulations. It has been discovered that loans 
that are in compliance with requirements and have been current for more 
than 23 months but still have an outstanding balance of more than two-
thirds of the original loan amount do not fit the criteria provided for 
in any classification. This action is to revise the criteria so that 
those loans will be included in the current non-problem classification.

List of Subjects in 7 CFR Part 1980

    Loan programs--Business and Industry, rural development assistance, 
rural areas.

    Accordingly, part 1980 of chapter XVIII, title 7 of the Code of 
Federal Regulations is proposed to be amended as follows:

PART 1980--GENERAL

    1. The authority citation for Part 1980 continues to read as 
follows:

    Authority: 7 U.S.C. 1989; 42 U.S.C. 1480; 7 U.S.C. 301; 7 CFR 
2.23; 7 CFR 2.70.

Subpart E--Business and Industrial Loan Program

    2. Section 1980.469 is amended by revising paragraph (c)(3) to read 
as follows:


Sec. 1980.469  Loan servicing.

* * * * *
    (c) * * *
    (3) Current Non-problem classification. Those loans that are 
current and are in compliance with all loan conditions and B&I 
regulations but do not meet all the criteria for a seasoned loan 
classification. All loans not classified as Seasoned or Current Non-
problem will be reported on the quarterly status report with 
documentation of the details of the reason(s) for the assigned 
classification.
* * * * *
    Dated: June 6, 1994.
Bob J. Nash,
Under Secretary, Small Community and Rural Development.
[FR Doc. 94-15365 Filed 6-23-94; 8:45 am]
BILLING CODE 3410-32-U