[Federal Register Volume 62, Number 34 (Thursday, February 20, 1997)]
[Proposed Rules]
[Page 7721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3991]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 62, No. 34 / Thursday, February 20, 1997 / 
Proposed Rules  

[[Page 7721]]



DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1710

RIN 0572-AB30


Pre-Loan Procedures for Electric Loans

AGENCY: Rural Utilities Service, USDA.

ACTION: Proposed rule.

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SUMMARY: The Rural Utilities Service (RUS) is proposing a minor 
amendment to its pre-loan procedures that will clarify that use of a 
conventional utility indenture as a security instrument for loans to 
power supply borrowers is permissible. This amendment will give these 
borrowers and RUS the flexibility to address the complex issues 
surrounding power supply loans in the rapidly changing electric 
industry. The rule will also enhance loan security and, by conforming 
more closely to private lending practice, allow easier access to 
private sector financing.
    In the final rules section of this Federal Register, RUS is 
publishing this action as a direct final rule without prior proposal 
because RUS views this as a noncontroversial action and anticipates no 
adverse comments. If no adverse comments are received in response to 
the direct final rule, no further action will be taken on this proposed 
rule and the action will become effective at the time specified in the 
direct final rule. If RUS receives adverse comments, a document will be 
published withdrawing the effective date of the direct final rule and 
all public comments received will be addressed in a subsequent final 
rule based on this action. Any parties interested in commenting on this 
action should do so at this time.

DATES: Comments on this proposed action must be received March 24, 
1997.

ADDRESSES: Written comments should be sent to F. Lamont Heppe, Jr., 
Director, Program Support and Regulatory Analysis, Rural Utilities 
Service, U.S. Department of Agriculture, Room 2230-S, 1400 Independence 
Avenue, SW., STOP 1522, Washington, DC 20250-1522. RUS requires, in 
hard copy, a signed original and 3 copies of all comments (7 CFR 
1700.30(e)). Comments will be available for public inspection during 
regular business hours at Room 4034, South Building, U.S. Department of 
Agriculture, Washington, DC 20250 between 8:00 a.m. and 4:00 p.m. (7 
CFR part 1.27(b)).

FOR FURTHER INFORMATION CONTACT: F. Lamont Heppe, Jr., Director, 
Program Support and Regulatory Analysis, Rural Utilities Service, U.S. 
Department of Agriculture, Room 2230-S, 1400 Independence Avenue, SW., 
STOP 1522, Washington, DC 20250-1522. Telephone: 202-720-0736. FAX: 
202-720-4120. E-mail: [email protected].

SUPPLEMENTARY INFORMATION: See the Supplementary Information provided 
in the direct final rule located in the final rules section of this 
Federal Register for the applicable supplementary information on this 
action.

    Authority: 7 U.S.C. 901 et seq.

    Dated: February 10, 1997.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 97-3991 Filed 2-19-97; 8:45 am]
BILLING CODE 3410-15-P