[Federal Register Volume 61, Number 73 (Monday, April 15, 1996)]
[Notices]
[Pages 16461-16462]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9201]



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DEPARTMENT OF AGRICULTURE
Farm Service Agency


Farm Service Agency County Committees; Farm Credit Programs Loan 
Eligibility Determinations

AGENCY: Farm Service Agency, USDA.

ACTION: Notice.

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SUMMARY: The Farm Service Agency (FSA) is announcing that its county 
and area committees will review all Farm Credit Programs direct and 
guaranteed loan applications and certain servicing requests for 
eligibility in accordance with applicable FSA regulations.

FOR FURTHER INFORMATION CONTACT: Chuck Ropp, FSA, Senior Loan Officer, 
Direct Loan Making Branch, USDA, AG Box Code 0522, Room 5428-South, 
14th and Independence SW., Washington, DC 20250, Telephone: 202-690-
4017.

SUPPLEMENTARY INFORMATION: Section 226 of the Department of Agriculture 
Reorganization Act of 1994 (Public Law 103-354) (the Act) transferred 
the farmer programs loan functions of the Farmers Home Administration 
(FmHA), and all the functions of the Agricultural Stabilization and 
Conservation Service (ASCS) to what is now the FSA. In addition, 
section 227 of the Act abolished the former FmHA county committees by 
removing section 332 and part of Sec. 333 of the Consolidated Farm and 
Rural Development Act (CONACT) (7 U.S.C. 1982 and 1983). Section 227 of 
the Act also amended section 8(b) of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590h(b)) concerning State, county and area 
committees. In part, the amendment requires the Secretary of 
Agriculture to establish a county or area committee in each county or 
area in which activities are carried out under section 227 of the Act. 
The Secretary must use the services of such committees in carrying out 
programs under section 227, the agriculture credit programs under the 
CONACT, and in considering administrative appeals. The Secretary may 
also use the services of such committees in carrying out programs under 
other authorities administered by the Secretary.
    Under this authority, FSA will use FSA county or area committees to 
make the eligibility determinations related to Farm Credit Programs 
direct and guaranteed loan making and servicing that were made by FmHA 
county committees prior to passage of the Act. No changes are made to 
the substantive rights or duties of borrowers, applicants, or lenders. 
The following FSA regulations discuss the new role of the FSA county 
and area committees:
    7 CFR part 1900, subpart D, Sec. 1900.155(b) (processing loan 
assistance to employees, relatives and associates).
    7 CFR part 1910, subpart A, Secs. 1910.4 (processing applications) 
and 1910.6(a) and (b) (notification of applicant).
    7 CFR part 1924, subpart B, Sec. 1924.74(b) (borrower training).
    7 CFR part 1941, subpart A, Secs. 1941.15(e), (h), and (k) (special 
beginning farmer OL loan assistance), 1941.30 (county committee 
certification), and 1941.33 (b) (loan approval or disapproval).
    7 CFR part 1943, subpart A, Secs. 1943.30 (county committee 
certification) and 1943.33(b) (loan approval or disapproval).
    7 CFR part 1943, subpart B, Secs. 1943.80 (county committee 
certification) and 1943.83 (b) (loan approval or disapproval).
    7 CFR part 1945, subpart D, Secs. 1945.180 (county committee 
certification) and 1945.183(b) (loan approval or disapproval).
    7 CFR part 1951, subpart F, Secs. 1951.254(d) and 1951.261(b)(2), 
(e)(4), (e)(7), and (g)(4) (graduation).
    7 CFR part 1951, subpart J, Sec. 1951.463(e) (county committee 
actions on Farmer 7 CFR part 1951, subpart S, Secs. 1951.903(b) 
(recommendation for debt settlement), 1951.909(a)(3) (borrower 
training), 1951.911(a) (leaseback/buyback), and 1951.914 (recapture 
under Shared Appreciation Agreement).
    7 CFR part 1955, subpart A, Sec. 1955.10(f)(2) (release from 
liability).
    7 CFR part 1955, subpart B, Secs. 1955.53 (``Suitable property''), 
1955.63 (suitability determination), and 1955.66(h)(4) (lease of farm 
property).
    7 CFR part 1955, subpart C, Secs. 1955.103 (``Suitable property''), 
1955.107(d) and (f) (sale of suitable property), 1955.108 introduction 
(sale of

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surplus property), and 1955.140 (sale in parcels).
    7 CFR part 1956, subpart B, Secs. 1956.57(f) (county committee 
review of debt settlement proposals), 1956.84 (approval or rejection), 
and 1956.96 (delinquent adjustment agreements).
    7 CFR part 1962, subpart A, Secs. 1962.34 (transfer of chattel 
security and assumption of debt), 1941.41(e) and (f), and 1941.46(g)(5) 
(release of liability).
    7 CFR part 1965, subpart A, Secs. 1965.12(a)(9) (subordination), 
1962.26(f)(5)(i) (cash sales; release of liability), and 
1965.27(b)(19), (f), and (g)(6) (transfer of real estate security).
    7 CFR part 1980, subpart B, Secs. 1980.114, 1980.115 (review of 
guaranteed loan applications), 1980.176 (e), (h), and (k) (special 
beginning farmers or rancher OL loan assistance), and 1980.191(b) 
(borrower training).
    References in these regulations to the following requirements will 
not be carried out by the FSA county or area committees: the 5 or 15 
day deadline for holding county committee meetings, the eligibility 
requirements that the applicant has the character, industry, and 
ability to carry out the proposed operations and will honestly endeavor 
to carry out its undertakings and obligations, and the provisions for 
5-year eligibility certification. These policies were based on sections 
332(e) and 333(2) of the CONACT that were abolished by section 227 of 
the Act. The outdated references will be removed by separate rule in 
the Federal Register.
    The regulations at 7 CFR part 2054, subpart W concerning the 
employment, pay, and functions of FmHA county or area committees do not 
apply to county and area committees authorized under section 8(b) of 
the Soil Conservation and Domestic Allotment Act. The selection and 
functions of FSA State, county, and area committees are governed by 
regulations at 7 CFR part 7 as consistent with section 227 of the Act.

    Signed at Washington, D.C., on April 8, 1996.
Bruce R. Weber,
Acting Administrator, Farm Service Agency.
[FR Doc. 96-9201 Filed 4-12-96; 8:45 am]
BILLING CODE 3410-05-P