[Federal Register Volume 64, Number 218 (Friday, November 12, 1999)]
[Notices]
[Pages 61575-61580]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29527]
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DEPARTMENT OF AGRICULTURE
Rural Business--Cooperative Service
Invitation for Applications of Interest to Sell Intermediary
Relending Program (IRP) Loans Under an Expanded Pilot
AGENCY: Rural Business-Cooperative Service, U.S. Department of
Agriculture (USDA).
ACTION: Notice.
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SUMMARY: The Rural Business-Cooperative Service (RBS) announces an
expanded pilot sale of Intermediary Relending Program intermediary
loans made to third parties. RBS will competitively select and
authorize several intermediaries to sell an aggregate amount of
approximately $50 million of the existing IRP portfolios in Fiscal Year
(FY) 2000 from among those intermediaries who have advanced at least 95
percent of IRP funding received by the intermediary. This announcement
is also intended to provide notice to potential purchasers and other
parties interested in structuring the sale of ultimate recipient notes.
The intended effect of this notice is to solicit applications of
interest from intermediaries who wish to participate in the FY 2000
loan sale. Selected applicants will be notified in writing and on the
Agency web site. The benefit of this loan sale to the intermediary will
be an increase in portfolio liquidity, allowing the intermediary to re-
loan money back into the community. The Agency advances loans to
eligible intermediaries that subsequently reloan to eligible
applicants, including individuals, public or private organizations, or
other legal entities with authority to incur debt and carry out the
purpose of the loan. During the application process for this pilot
sale, an intermediary will express interest in selling its seasoned
portfolio. The initial screening of the intermediaries and their
portfolios will be the responsibility of the Rural Development State
Offices. State Offices will make recommendations to the National
Office, and the National Office will evaluate the applications of
interest, along with State Office recommendations, and make the final
selections for loan sales.
RBS will maintain lists of intermediaries expressing interest in
offering their portfolios for sale, potential buyers for those
portfolios, and offerors of other services to buyers or sellers, e.g.,
financial advisors. However, only intermediaries selected through the
invitation of applications of interest process will be authorized to
sell third-party loans. Intermediary applications of interest must
include (1) a history of the intermediary; (2) its latest annual
report; (3) summary data on each loan in the portfolio including
original and current amount, interest rate, terms, loan maturities, and
loan performance; (4) delinquency rate on all loans in its portfolio;
(5) reserves for loan payments; (6) the number of jobs created or
saved; (7) the Standard Industrial Code for each loan recipient; (8)
write-off of bad debts history; (9) a proposal that illustrates how the
sale of the intermediary's portfolio supports Rural Development Mission
Area target objectives, i.e., rural areas suffering fundamental,
physical and economic stress, persistent poverty, out migration, or as
identified in the Rural Development State Strategic Plan; (10) non-
federal fund leveraging of past or potential loans; and (11) the
documentation of the need for added capital and unmet loan demand. It
is important that the performance history of the overall portfolio,
including any portion not proposed for sale, be fully detailed
including the volume and frequency of any delinquencies or default.
DATES: The deadline for receipt of the applications of interest in the
third-party sale must be received in the applicable Rural Development
State Office (see addresses below) by 4:00 P.M. Eastern Standard Time
on December 27, 1999.
Applications received after that date will not be considered for
participation in the expanded pilot. The comment period for information
collection under the Paperwork Reduction Act of 1995 continues through
January 11, 2000. Comments on the paperwork burden must be received by
this date to be assured of consideration.
ADDRESSES: Applications to participate in the expanded pilot sale
should be mailed to the Rural Development State Office in the State in
which the intermediary is headquartered. Listed below are the following
addresses for Rural Development State Offices:
Alabama
USDA Rural Development State Office, Sterling Center, Suite 601,
4121 Carmichael Road, Montgomery, AL 36106-3683 (334) 279-3400
Alaska
USDA Rural Development State Office, 800 West Evergreen, Suite 201,
Palmer, AK 99645-6539, (907) 745-2176
Arizona
USDA Rural Development State Office, 3003 North Central Avenue,
Suite 900, Phoenix, AZ 85012-2906, (602) 280-8700
Arkansas
USDA Rural Development State Office, 700 West Capitol Avenue, Room
3416, Little Rock, AR 72201-3225, (501) 301-3200
California
USDA Rural Development State Office, 430 G Street, Agency 4169,
Davis, CA 95616-4169, (530) 792-5800
Colorado
USDA Rural Development State Office, 655 Parfet Street, Room E-100,
Lakewood, CO 80215, (303) 236-2801
Delaware-Maryland
USDA Rural Development State Office, 4607 South DuPont Highway,
Camden, DE 19934-9998, (302) 697-4300
Florida/Virgin Islands
USDA Rural Development State Office, 4440 NW. 25th Place,
Gainesville, FL 32614-7010, (352) 338-3400
Georgia
USDA Rural Development State Office, Stephens Federal Building, 355
E. Hancock Avenue, Athens, GA 30601-2768, (706) 546-2162
Hawaii
USDA Rural Development State Office, Federal Building, Room 311,
154 Waianuenue Avenue, Hilo, HI 96720, (808) 933-8380
Idaho
USDA Rural Development State Office, 9173 West Barnes Drive, Suite
A1, Boise, ID 83709, (208) 378-5600
Illinois
USDA Rural Development State Office, Illini Plaza, Suite 103, 1817
[[Page 61576]]
South Neil Street, Champaign, IL 61820, (217) 398-5235
Indiana
USDA Rural Development State Office, 5975 Lakeside Boulevard,
Indianapolis, IN 46278, (317) 290-3100
Iowa
USDA Rural Development State Office, Federal Building, Room 873,
210 Walnut Street, Des Moines, IA 50309, (515) 284-4663
Kansas
USDA Rural Development State Office, 1200 SW. Executive Drive,
Topeka, KS 66604, (785) 271-2700
Kentucky
USDA Rural Development State Office, 771 Corporate Drive, Suite
200, Lexington, KY 40503, (606) 224-7300
Louisiana
USDA Rural Development State Office, 3727 Government Street,
Alexandria, LA 71302, (318) 473-7920
Maine
USDA Rural Development State Office, 444 Stillwater Avenue, Suite
2, Bangor, ME 04402-0405, (207) 990-9106
Massachusetts/Rhode Island/Connecticut
USDA Rural Development State Office, 451 West Street, Amherst, MA
01002, (413) 253-4300
Michigan
USDA Rural Development State Office, 3001 Coolidge Road, Suite 200,
East Lansing, MI 48823, (517) 324-5100
Minnesota
USDA Rural Development State Office, 410 AgriBank Building, 375
Jackson Street, St. Paul, MN 55101-1853, (651) 602-7800
Mississippi
USDA Rural Development State Office, Federal Building, Suite 831,
100 West Capitol Street, Jackson, MS 39269, (601) 965-4316
Missouri USDA Rural Development State Office, 601 Business Loop 70
West, Parkade Center, Suite 235, Columbia, MO 65203, (573) 876-0976
Montana
USDA Rural Development State Office, 900 Technology Blvd., Unit 1,
Suite B, Bozeman, MT 59715, (406) 585-2580
Nebraska
USDA Rural Development State Office, Federal Building, Room 152,
100 Centennial Mall N, Lincoln, NE 68508, (402) 437-5551
Nevada
USDA Rural Development State Office, 1390 South Curry Street,
Carson City, NV 89703-9910, (775) 887-1222
New Jersey
USDA Rural Development State Office, Tarnsfield Plaza, Suite 22,
790 Woodlane Road, Mt. Holly, NJ 08060, (609) 265-3600
New Mexico
USDA Rural Development State Office, 6200 Jefferson Street, NE.,
Room 255, Albuquerque, NM 87109, (505) 761-4950
New York
USDA Rural Development State Office, The Galleries of Syracuse 441
South Salina Street, Suite 357, Syracuse, NY 13202-2541, (315) 477-6400
North Carolina
USDA Rural Development State Office, 4405 Bland Road, Suite 260,
Raleigh, NC 27609, (919) 873-2000
North Dakota
USDA Rural Development State Office, Federal Building, Room 208,
220 East Rosser, Bismarck, ND 58502-1737, (701) 530-2043
Ohio
USDA Rural Development State Office, Federal Building, Room 507,
200 North High Street, Columbus, OH 43215-2477, (614) 469-5606
Oklahoma
USDA Rural Development State Office, 100 USDA, Suite 108,
Stillwater, OK 74074-2654, (405) 742-1000
Oregon
USDA Rural Development State Office, 101 SW Main Street, Suite
1410, Portland, OR 97204-3222, (503) 414-3300
Pennsylvania
USDA Rural Development State Office, One Credit Union Place, Suite
330, Harrisburg, PA 17110-2996, (717) 237-2299
Puerto Rico
USDA Rural Development State Office, New San Juan Office Building,
Room 501, 159 Carlos E. Chardon Street, Hato Rey, PR 00918-5481, (787)
766-5095
South Carolina
USDA Rural Development State Office, Strom Thurmond Federal
Building, 1835 Assembly Street, Room 1007, Columbia, SC 29201, (803)
765-5163
South Dakota
USDA Rural Development State Office, Federal Building, Room 210,
200 4th Street, SW., Huron, SD 57350, (605) 352-1100
Tennessee
USDA Rural Development State Office, 3322 West End Avenue, Suite
300, Nashville, TN 37203-1084, (615) 783-1300
Texas
USDA Rural Development State Office, Federal Building, Suite 102,
101 South Main, Temple, TX 76501, (254) 742-9700
Utah
USDA Rural Development State Office, Wallace F. Bennett Federal
Building, 125 South State Street, Room 4311, Salt Lake City, UT 84147-
0350, (801) 524-4320
Vermont/New Hampshire
USDA Rural Development State Office, City Center, 3rd Floor 89 Main
Street, Montpelier, VT 05602, (802) 828-6000
Virginia
USDA Rural Development State Office, Culpeper Building, Suite 238,
1606 Santa Rosa Road, Richmond, VA 23229, (804) 287-1550
Washington
USDA Rural Development State Office, 1835 Black Lake Boulevard,
SW., Suite B, Olympia, WA 98512-5715, (360) 704-7740
West Virginia
USDA Rural Development State Office, Federal Building, 75 High
Street, Room 320, Morgantown, WV 26505-7500, (304) 291-4791
Wisconsin
USDA Rural Development State Office, 4949 Kirschling Court, Stevens
Point, WI 54481, (715) 345-7600
Wyoming
USDA Rural Development State Office, 100 East B, Federal Building,
Room 1005, Casper, WY 82602, (307) 261-6300
FOR FURTHER INFORMATION CONTACT: David W. Lewis, Rural Business-
Cooperative Service, USDA, Room 6858-S, Mail Stop 3224, South
Agriculture Building, 1400 Independence Avenue, SW., Washington, D.C.
20250-3224, Telephone (202) 690-0797.
SUPPLEMENTARY INFORMATION: IRP regulations are published in 7 CFR part
4274, subpart D. Section 1323 of the Food and Security Act of 1985
(Public Law (Pub. L.) 99-198) (7 U.S.C. 1932 Note) as amended by Pub.
L. 99-425, in 1988, authorized the Secretary to make loans to entities
for the purposes and subject to the terms and conditions specified in
the first, second, and last sentences of section 623(a) of the
Community Economic Development Act of 1981 (42 U.S.C. 9812(a)). The
intermediary loans previously approved and administered by the U.S.
Department of Health and Human Services under 45 CFR part 1076, which
were transferred to the USDA under the
[[Page 61577]]
provisions of Section 1323 of the Food Security Act of 1985, Public Law
99-198, will not be eligible for participation in the pilot sale.
The Agency initiated a pilot program through a Memorandum of
Understanding with the Colorado Housing and Finance Authority (CHFA) in
May 1997 to allow CHFA to sell its ultimate recipient portfolio on the
secondary market. CHFA was created to address the critical funding
needs of community-based development lenders in Colorado. Since the
sale of IRP notes is not addressed in the RBS regulations governing the
IRP, only a pilot program was authorized. In consultation with the
Office of Management and Budget (OMB) and the U.S. Department of the
Treasury, RBS has decided to expand the pilot sale, on a limited basis,
in order to gather additional information and experience for
consideration in establishing a permanent sales program.
Paperwork Reduction Act:
The reporting requirements contained in this regulation have
received temporary emergency clearance by the Office of Management and
Budget (OMB) under Control Number 0570-0036. However, in accordance
with the Paperwork Reduction Act of 1995, RBS will seek standard OMB
approval of the reporting requirements contained in this notice and
hereby opens a 60-day public comment period.
Abstract: RBS, an Agency within the Rural Development area of USDA,
administers the Intermediary Relending Program which provides loans to
non-profit organizations, public agencies, Indian Tribes, and
cooperatives to establish a revolving loan program. The revolving loan
program provides financial assistance to business facilities and
community development projects in rural areas.
Estimate of Burden: .22 hours.
Respondents: Intermediaries and ultimate recipients.
Estimated Number of Respondents: 1,000.
Estimated Number of Responses per Respondent: 19.41.
Estimated Total Annual Burden on Respondents: 4,308 hours.
Copies of this information collection can be obtained from Tracy
Gillin, Regulations and Paperwork Management Branch, (202) 692-0039.
Comments: Comments are invited on: (a) whether the proposed
collection of information is necessary for the proper performance of
the functions of the Agency, including whether the information will
have practical utility; (b) the accuracy of the Agency estimate of the
burden of the proposed collection of information including the validity
of the methodology and assumptions used; (c) ways to enhance the
quality, utility, and clarity of the information to be collected; and
(d) ways to minimize the burden of the collection of information on
those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology. Comments on the
paperwork burden may be sent to Tracy Gillin, Regulations and Paperwork
Management Branch, Rural Development, U.S. Department of Agriculture,
Stop 0742, 1400 Independence Avenue, SW., Washington, D.C. 20250. All
responses to this notice will be summarized and included in the request
for OMB approval. All comments will also become a matter of public
record.
Criteria For Participation in the Ultimate Recipient Portfolio
Sale:
The expansion of the pilot sale will be conducted on a competitive
basis and under criteria set by RBS. The following criteria are set
forth and must be met (with adequate documentation provided) to be
considered under this pilot sale.
1. Intermediaries must express interest in selling their entire
ultimate recipient portfolio classified as seasoned loans (loans
outstanding for at least 12 months). The following qualifications also
apply:
a. The loans must be current according to their promissory notes
and other agreements.
b. The current 30-day or more delinquency rate based on the number
of loans outstanding for the entire IRP portfolio, including the
portion not proposed to be offered for sale, must not exceed 3 percent.
c. In the aggregate, loans will be sold at ``hold'' or ``market''
value.
d. Notes will be sold without recourse to the intermediary.
e. Annual portfolio writeoffs by the intermediary of its loans
based on the number of loans outstanding will not exceed an average of
1 percent over the past 3 years.
f. All due diligence expenses in connection with the sale will be
paid by the purchaser and reflected in any sale contract entered into
between intermediary and purchaser.
g. Due diligence expenses will only be authorized by the Agency to
be paid if the intermediary portfolio is selected for the loan sale.
The intermediary will be released from any subsequent liability in
regard to the sale of notes sold as non-recourse loans.
h. Intermediaries agree to use sale proceeds only to make new loans
under 7 CFR part 4274, subpart D.
i. The sales proceeds will be tracked separately and will be
deposited into the intermediary's revolving loan fund, recapitalizing
the fund for the purpose of making new loans in accordance with the
eligible purposes outlined in the current Agency regulations, work
plan, and loan agreements.
2. Intermediaries who have advanced at least 95 percent of the
aggregate total funds loaned them by RBS under this program and who
meet the stated criteria are eligible to apply for participation in
this expanded pilot. The intermediary must provide documentation for
the unmet demand for third-party loans and its ability to re-lend all
of the proceeds to eligible projects within 3 years from the date of
the loan sale before it will be considered for participation in this
expanded pilot. This documentation must include a list of loans turned
down for lack of funds and the aggregate number and amount of viable
loans considered but not made. The intermediary may provide a survey
indicating demand for additional funds. The intermediary must provide
documentation evidencing project cost leveraging, reserves for losses,
and loans made in Rural Development mission areas, targeted areas, and
population. Refer to State Offices for details on target areas. The
intermediary must reloan 95 percent of the replenished capital within
the 3-year period following loan sale closing or at the end of the 3-
year period must immediately make extra principal repayments on its IRP
loan(s) in the full amount of the undisbursed portion as required by
current IRP regulations. Intermediaries selected to participate in the
expanded third-party sale must maintain their IRP loans with the Agency
in a current status. There will be no moratorium or deferment of
payments granted to the intermediary to advance the new funds, and
proceeds from the sale can be used for Agency debt service.
Intermediaries must have sufficient alternative sources of funds to
ensure IRP loan repayment. Intermediaries permitted to sell their loan
portfolios will be ineligible to apply for further IRP loans from RBS
unless 95 percent of funds received from the sale have been advanced.
Upon selection of the IRP application for the loan sale, all pending
IRP applications for funding from the annual Agency appropriation cycle
will be held in suspense. If the intermediary is unable to sell its
loans under terms approved by RBS, the suspended IRP applications for
funding will be reactivated for further funding
[[Page 61578]]
consideration under the available Agency appropriation.
3. All sales will be ``hold'' or ``market value'' without recourse
to the intermediary. If there is Community Reinvestment Act credit
associated with the loans, the amount of such credit is to be
permanently noted, as it may influence the value to a final purchaser.
RBS interprets any financial contribution by the intermediary, other
than meeting its own expenses associated with the sale, as potentially
weakening the financial strength of the intermediary to meet its long-
term obligation to RBS. Intermediary affiliate resources or
contributions from private sources used in ``hold'' or ``market value''
sale of the ultimate recipient portfolio will not be either a debt or a
contingent liability of the intermediary and will be highly scrutinized
by the Agency. Only intermediaries selected for the loan sale are
authorized to sell their ultimate recipient portfolio.
4. RBS may authorize the non-recourse sale of less than a total
portfolio. The sale may be structured as a sale of whole loans or as
any related structure.
5. The intermediary will advertise the sale of its loans in media
with significant national distribution to attract the greatest possible
interest from a diverse client base. Advertising costs may be shared on
a cooperative basis with other participating intermediaries to assist
in defraying advertising expenses. Such cost will be the responsibility
of the intermediary. It is the intent of RBS to develop a coordinated
approach to soliciting interest from eligible intermediaries and
potential purchasers of the portfolio to ensure an equitable
opportunity to participate and to obtain the best prices for the
portfolios.
6. Intermediaries may retain or offer to retain servicing rights to
their portfolio loans sold in the pilot as authorized by the Agency. In
the event the intermediary retains servicing rights, the intermediary
will analyze the portfolios it manages, the staffing and process it
maintains to make and service loans in each portfolio, and the steps it
expects to take to maintain adequate staffing to service and make loans
and present such analysis to RBS. The intermediary will be required to
obtain certification from the purchaser that the sale of servicing will
not result in an acceleration of ultimate recipient loans and that
appropriate and adequate servicing will continue following the loan
sale.
7. Recapitalized funds realized from the loan sale will be reloaned
for eligible purposes in accordance with current IRP regulations found
at 7 CFR part 4274, subpart D, and 7 CFR part 1951, subpart R; the
approved work plan; and processed under the same procedure as third-
party loans made from Agency (Federal) funds. Recapitalized funds
resulting from the sale, even though not Agency IRP loan funds, will be
administered in accordance with current regulations and the approved
work plan. The Agency will exercise the same oversight responsibilities
as required for projects receiving IRP Federal funds directly from the
Agency. These responsibilities include Agency review of individual
third-party loans prior to approval, conduct of environmental reviews,
and the requirement that 25 percent of the loan amount for all third-
party loans be financed from other sources until funds have revolved.
Proceeds from the sale shall only be used for recapitalization of the
IRP revolving fund and will not be co-mingled with funds from other
programs until funds have revolved.
8. All reserves and other cash in the IRP revolving fund not
immediately needed for loans to ultimate recipients or other authorized
uses will be deposited in Federal Deposit Insurance Corporation (FDIC)
accounts in banks or other financial institutions. Such accounts will
be fully covered by FDIC or fully collateralized with U.S. Government
obligations and must be interest bearing. Any interest earned thereon
remains a part of the IRP revolving fund.
9. In order to participate in the pilot program, the intermediary
must have no more than an average of 1 percent in annual writeoffs over
the past 3 years in the same portfolio, measured as the percentage of
the total seasoned portfolio. Intermediary applications for the pilot
program will be evaluated on the RBS point scoring system on a
nationwide basis.
IRP Ranking Criteria
Priority points are determined as follows:
(Maximum Number of Points Including Administrator Priority Points: 100)
1. Percent of Portfolio Loaned--Maximum Points: 10.
a. Intermediary that has loaned out all of the IRP Federal funds
(10 points).
b. Intermediary that has loaned out between 97-99 percent of the
IRP Federal funds (8 points).
c. Intermediary that has loaned out 95 up to 97 percent of the IRP
Federal funds (5 points).
2. Delinquencies--Maximum Points: 10.
a. Intermediary that has no ultimate recipient delinquency in its
portfolio (10 points).
b. Intermediary that has 1 percent or less delinquencies in its
portfolio based on number of outstanding loans (8 points).
c. Intermediary that has more than 1 percent but less than 2
percent delinquencies in its portfolio based on number of outstanding
loans (5 points).
d. Intermediary that has between 2 percent up to and including 3
percent portfolio delinquency rate inclusive on the number of
outstanding loans (3 points).
3. Writeoffs of Bad Loans--Maximum Points: 10.
a. Intermediary that has no writeoffs of ultimate recipient loans
over the past 3 fiscal years (10 points).
b. Intermediary that has written off 1 percent or less of its
ultimate recipient loans over the past 3 fiscal years (8 points).
4. Maturity of Loans--Maximum Points: 10.
a. Intermediary that has an average ultimate recipient loan
portfolio maturity of more than 10 years (10 points).
b. Intermediary that has an average ultimate recipient loan
portfolio maturity of 7 but less than 10 years (8 points).
c. Intermediary that has an average ultimate recipient loan
portfolio maturity of 5 but less than 7 years (5 points).
d. Intermediary that has an average ultimate recipient loan
portfolio with maturity of 3 but less than 5 years (3 points).
e. Intermediary that has an average ultimate recipient loan
portfolio maturity of 1 but less than 3 years (1 point).
5. Leverage: Intermediary that has Obtained Non-Federal Loan or
Grant Funds to Pay a Portion of the Cost of the Ultimate Recipient
Projects--Maximum Points: 10.
a. Fifty percent or more of the total project cost (10 points).
b. At least 25 percent but less than 50 percent of the total
project cost (8 points).
c. At least 10 percent but less than 25 percent of the total
project cost (5 points).
6. Rural Area--Maximum Points: 10.
a. Intermediary that has made 2 or more ultimate recipient loans or
has made 25 percent of the total loans, whichever is the greater, to
ultimate recipients in unincorporated areas, and cities or towns with
populations of 10,000 or less based on 1990 census data (10 points).
[[Page 61579]]
b. Intermediary that has made ultimate recipient loans in
unincorporated areas, and cities or towns with population more than
10,000 up to and including 20,000 based on 1990 census data (5 points).
7. Reserves for Loan Payments--Maximum Points: 10. Intermediary
that has established a sufficient cash reserve to make RBS loan
payments for at least 1 year (10 points).
8. Community Reinvestment Act Requirements--Maximum Points: 10.
Intermediary's ultimate recipient loans that meet Community
Reinvestment Act requirements (10 points).
9. Loans Sold at Par Value--Maximum Points: 5. A par sale is
defined as the receipt of sufficient funds from the sale of all
principal and interest outstanding on the loans sold to third parties.
10. Presidential/Administration Priority Areas: Empowerment Zones/
Enterprise Communities, Pacific Northwest/Alaskan Initiative, Rural
Development Mission Area, Targeted Areas and Population--Maximum
Points: 15.
a. Intermediary that has loaned 50 percent or more of its IRP funds
in targeted area populations (15 points).
b. Intermediary that has loaned between 25 up to 50 percent in
targeted area populations (10 points).
c. Intermediary that has loaned less than 25 percent of its IRP
funds in targeted area populations (5 points).
Additional Application Requirements for the IRP Pilot Sale
The intermediary's application will also include the following:
1. Company Name, Address, Contact Person, Telephone and Fax
Numbers, and E-Mail and URL Addresses (Web Site).
2. History of the Intermediary.
3. Modified Work plan, Detailing Mission or Goals, Outreach Service
Plan, etc.
4. Summarize Each Ultimate Recipient Loan in the Format Outlined in
Form RD 1951-4:
a. Name and address of intermediary.
b. Type of business.
c. Use of loan funds.
d. Original amount of loan.
e. Date of loan.
f. Unpaid balance.
g. Interest rate.
h. Terms of loan/date of final payment.
i. Collateral, including lien position.
j. Loan status.
k. Number of consecutive loan payments ultimate recipient has made
in accordance with the promissory note.
l. Standard Industrial Code on the ultimate recipient loan.
5. Summarize the Intermediary Ultimate Recipient Portfolio.
a. Range and average interest rates.
b. Range and average repayment term.
c. Percent of loans made for which intermediary received first
lien.
d. Percent of loans made with real estate collateral.
e. Percent of loans made with machinery and equipment collateral.
f. Percent of outstanding loans with current repayment status on
report date.
g. Percent of loans written off.
h. Percent of loans made with one or more payments late by 30 days
or more, since loan inception.
i. Percent of loans made for which terms have been renegotiated.
j. Use of leverage on each ultimate recipient loan.
k. Population where ultimate recipient loans were made.
l. Identify loans in mission area targeted areas.
Selections Announcement
The Agency will announce on its Internet web site, 45 days after
the end of the solicitation period, the intermediaries selected to
participate in the expanded pilot, potential purchasers, and third
parties interested in structuring the sale of ultimate recipient notes.
The Business Programs web site is located at www.rurdev.usda.gov/rbs/
busp/bpdir.htm. Click on ``IRP 3rd Party Sale'' to receive updates on
this loan sale on the Internet (e-mail and web site hot links
included). The information will provide updated lists of interested
intermediaries, third-party advisors, and third-party purchasers. The
application can be found on the Agency web site. RBS employees will be
notified of loan sale selections via memorandum and the Agency
intranet. All intermediaries making an application of interest under
the pilot program will also be notified, in writing, of their selection
or non-selection and of third-party purchaser and financial advisory
interest. To be included in the published listings, interested third
parties (purchasers and advisors) must provide the following
information:
Third-Party Purchasers Will Provide
Third-party purchasers will provide the company name, address,
contact person, telephone and fax numbers, e-mail address, and URL
address (web site). The expression of interest must be in writing. A
written letter accompanying the company history, expertise, examples,
and references from the purchasers is required and will be submitted to
the National Office, Attention: David Lewis, Loan Specialist, Business
Programs Servicing Division, Rural Business-Cooperative Service, Rural
Development, USDA, STOP 3224, 1400 Independence Avenue, SW.,
Washington, D.C. 20250-3224.
Advisors--Structuring the Sale
Advisors will provide the company name, address, contact person,
telephone and fax numbers, e-mail address, and URL address (web site).
The expression of interest must be in writing. A written letter
accompanying the company history, expertise, examples, and references
from the advisors is required and will be submitted to the National
Office, Attention: David Lewis, Loan Specialist, Business Programs
Servicing Division, Rural Business-Cooperative Service, Rural
Development, USDA, STOP 3224, 1400 Independence Avenue, SW.,
Washington, D.C. 20250-3224.
Other Matters
1. Environmental Finding. A Finding of No Significant Impact with
respect to the environment has been made in accordance with RBS
regulations at 7 CFR part 1940, subpart G.
2. Civil Rights Impact Analysis. It is the policy within the Rural
Development mission area to ensure that the consequences of any
proposed project approval do not negatively or disproportionately
affect program beneficiaries by virtue of race, color, sex, national
origin, religion, age, disability, and marital or familial status. To
ensure that any proposal under this demonstration program complies with
these objectives, the RBS approval official will complete Form RD 2006-
38, ``Civil Rights Impact Analysis Certification.''
3. Executive Order 12612, Federalism. The General Counsel, as the
Designated Official under section 6(a) of Executive Order 12612,
Federalism, has determined that the policies and procedures contained
in this Notice will not have substantial direct effects on States or
their political subdivisions, or the relationship between the Federal
Government and the States, or on the distribution of power and
responsibilities among the various levels of government. As a result,
the Notice is not subject to review under the Order.
4. Prohibition Against Advance Information on Funding Decisions.
The requirements of the rule continue to apply until the announcement
of the selection of successful applicants. RBS employees involved in
the review of applications and in the making of funding decisions are
restricted from providing advance information to any
[[Page 61580]]
person (other than an authorized employee of RBS) concerning funding
decisions, or from otherwise giving any applicant an unfair competitive
advantage.
Dated: November 2, 1999.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 99-29527 Filed 11-10-99; 8:45 am]
BILLING CODE 3410-XY-U