[Federal Register Volume 70, Number 70 (Wednesday, April 13, 2005)]
[Rules and Regulations]
[Pages 19253-19254]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-7377]



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 Rules and Regulations
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  Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / 
Rules and Regulations  

[[Page 19253]]



DEPARTMENT OF AGRICULTURE

Rural Housing Service

7 CFR Part 1942


Disbursement of Funds

AGENCY: Rural Housing Service, USDA.

ACTION: Final rule.

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

SUMMARY: The Agency is revising its disbursement of funds regulations. 
This action is necessary since existing regulations do not accurately 
reflect the current disbursement methodologies employed by the Agency. 
The intended effect is to simplify and update the regulations. These 
amended regulations are to ensure the Agencies' field offices have 
current guidance on the disbursement methods available.

EFFECTIVE DATE: April 13, 2005.

FOR FURTHER INFORMATION CONTACT: Ronald Gianella, Staff Accountant, 
Office of the Deputy Chief Financial Officer, Policy and Internal 
Review Division, U.S. Department of Agriculture, STOP 33, P.O. Box 
200011, St. Louis, MO 63120, telephone: (314) 457-4298.

SUPPLEMENTARY INFORMATION:

Classification

    This action is not subject to the provisions of Executive Order 
12866 since it involves only internal Agency management. This action is 
not published for prior notice and comment under the Administrative 
Procedure Act since it involves only internal Agency management and 
publication for comment is unnecessary and contrary to the public 
interest.

Programs Affected

    The Catalog of Federal Domestic Assistance programs impacted by 
this action are as follows:
10.405--Farm Labor Housing Loans and Grants
10.415--Rural Rental Housing Loans
10.433--Rural Housing Preservation Grants
10.766--Community Facilities Loans and Grants

Intergovernmental Consultation

    Programs with Catalog of Federal Domestic Assistance numbers 
10.405, 10.415, 10.433, and 10.766 are subject to the provisions of 
Executive Order 12372 which requires intergovernmental consultation 
with State and local officials.

Civil Justice Reform

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. In accordance with this rule: (1) Unless 
otherwise specifically provided, all State and local laws and 
regulations that are in conflict with this rule will be preempted; (2) 
no retroactive effect will be given to this rule except as specifically 
prescribed in the rule; and (3) administrative proceedings of the 
National Appeals Division (7 CFR part 11) must be exhausted before 
litigation against the Department is instituted.

Paperwork Reduction Act

    There are no new reporting and recordkeeping requirements 
associated with this rule.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub. 
L. 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, the 
Agencies generally must prepare a written statement, including a cost-
benefit analysis, for proposed and final rules with ``Federal 
mandates'' that may result in expenditures to State, local, or tribal 
governments, in the aggregate, or to the private sector, of $100 
million or more in any 1 year. When such a statement is needed for a 
rule, section 205 of the UMRA generally requires the agencies to 
identify and consider a reasonable number of regulatory alternatives 
and adopt the least costly, more cost-effective, or least burdensome 
alternative that achieves the objectives of the rule.
    This rule contains no Federal mandates (under the regulatory 
provisions of title II of the UMRA) for State, local, and tribal 
governments or the private sector. Thus, the rule is not subject to the 
requirements of section 202 and 205 of the UMRA.

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
Subpart G, ``Environmental Program.'' The Agencies have determined that 
this final action does not constitute a major Federal action 
significantly affecting the quality of human environment, and in 
accordance with the National Environmental Policy Act of 1969, 42 
U.S.C. 4321 et seq., an Environmental Impact Statement is not required.

Executive Order 13132, Federalism

    The policies contained in this rule do not have any substantial 
direct effect on States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government. Nor does this 
rule impose substantial direct compliance costs on State and local 
governments. Therefore, consultation with the States is not required.

Discussion of Final Rule

    These subparts are being revised to conform with changes made to 7 
CFR 2018, subpart D, to include information concerning implementation 
of electronic funds transfer.

List of Subjects in 7 CFR Part 1942

    Community development, community facilities, loan programs--housing 
and community development, loan security, rural areas, waste treatment 
and disposal--domestic, water supply--domestic.

0
Accordingly, Chapter XVIII, Title 7, of the Code of Federal Regulations 
is amended as follows:

PART 1942--ASSOCIATIONS

0
1. The authority citation for part 1942 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1932; 7 U.S.C. 1989; and 16 
U.S.C. 1005.

Subpart A--Community Facility Loan

0
2. Section 1942.7 is amended by revising paragraphs (a) and (e) to read 
as follows:


Sec.  1942.7  Loan closing.

* * * * *

[[Page 19254]]

    (a) Authority to execute, file, and record legal instruments. Area 
Office employees are authorized to execute and file or record any legal 
instruments necessary to obtain or preserve security for loans.
* * * * *
    (e) Loan disbursements. Whenever a loan disbursement is received, 
lost, or destroyed, the Rural Development Manager will take appropriate 
actions outlined in Rural Development Instruction 2018-D.
* * * * *

0
3. Section 1942.12 is amended by revising paragraphs (a) and (b) to 
read as follows:


Sec.  1942.12  Loan cancellation.

* * * * *
    (a) Form Rural Development 1940-10, ``Cancellation of U.S. Treasury 
Check and/or Obligation.'' The Rural Development Manager or State 
Director may prepare and execute Form Rural Development 1940-10, 
Cancellation of U.S. Treasury Check and/or Obligation, in accordance 
with the Forms Manual Insert (FMI). If the disbursement has been 
received or is subsequently received in the Area Office, the Rural 
Development Manager will return it as prescribed in Rural Development 
Instruction 2018-D.
    (b) Notice of Cancellation. If the docket has been forwarded to 
Office of General Counsel that office will be notified of the 
cancellation by copy of Form Rural Development 1940-10. Any application 
for title insurance, if ordered, will be cancelled. The borrower's 
attorney and engineer/architect, if any, should be notified of the 
cancellation. The Rural Development Manager may provide the borrower's 
attorney and engineer/architect with a copy of the notification to the 
applicant. The State Director will notify the Director of Legislative 
Affairs and Public Information by telephone or electronic mail and give 
the reasons for such cancellation.

0
4. Section 1942.15 is revised to read as follows:


Sec.  1942.15  Delegation and redelegation of authority.

    The State Director is responsible for implementing the authorities 
in this subpart and for issuing State supplements redelegating 
authorities. Loan and grant approval authority is in Subpart A of Part 
1901 of this chapter. Except for loan and grant approval authority, 
Rural Development Manager may redelegate their duties to qualified 
staff members.

Subpart C--Fire and Rescue and Other Small Community Facilities 
Projects

0
5. Section 1942.123 is amended by revising paragraphs (h)(2), (h)(3), 
(j), and (l) to read as follows:


Sec.  1942.123  Loan closing.

* * * * *
    (h) * * *
    (2) The Office of the Deputy Chief Financial Officer will prepare a 
statement of account including accrued interest through the proposed 
date of retirement and also show the daily interest accrual. The 
statement of account and the interim financing instruments will be 
forwarded to the Rural Development Manager.
    (3) The Rural Development Manager will collect interest through the 
actual date of the retirement and obtain the permanent instrument(s) of 
debt in exchange for the interim financing instruments. The permanent 
instruments and the cash collection will be forwarded to the Office of 
the Deputy Chief Financial Officer immediately, except that for notes 
and single instrument bonds fully registered as to principal and 
interest the original will be retained in the Area Office and a copy 
will be forwarded to the Office of the Deputy Chief Financial Officer. 
In developing the permanent instruments, the sequence of preference set 
out Sec.  1942.19(e) of Subpart A of Part 1942 of this chapter will be 
followed.
* * * * *
    (j) Loan disbursements. Whenever a loan disbursement is received, 
lost, or destroyed, the Rural Development Manager will take the 
appropriate actions outlined in Rural Development Instruction 2018-D.
* * * * *
    (1) Review of loan closing. When the loan has been closed, the 
Rural Development Manager will submit the completed loan closing 
documents and a statement showing what was done in closing the loan to 
the State Director. The State Director will review the documents and 
the Rural Development Manager's statement to determine whether the 
transaction was closed properly. For loans to public bodies or Indian 
tribes the State Director will forward all documents, along with a 
statement that all administrative requirements have been met, to the 
Regional Attorney. The Regional Attorney will review the submitted 
material to determine whether all legal requirements have been met. The 
Regional Attorney should review Rural Development standard forms only 
for proper execution, unless the State Director brings attention to 
specific questions. Facility development should not be held up pending 
receipt of the Regional Attorney opinion. When the review of the State 
Director has been completed, and for public bodies and Indian tribes 
the Regional Attorney's opinion has been received, the State Director 
must advise the Rural Development Manager of any deficiencies that must 
be corrected and return all material that was submitted for review.
* * * * *

    Dated: March 9, 2005.
Russell T. Davis,
Administrator, Rural Housing Service.
[FR Doc. 05-7377 Filed 4-12-05; 8:45 am]
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