[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.

-----------------------------------------------------------------------

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                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             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.                                                                                                              
                                                                            ----------------------------------------------------------------------------
      Totals...................  ..............................  ..........  .........    170,000  .........     23,800    246,092  .........  .........
--------------------------------------------------------------------------------------------------------------------------------------------------------

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.

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Borrower

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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