[Federal Register Volume 77, Number 21 (Wednesday, February 1, 2012)]
[Rules and Regulations]
[Page 4885]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1969]



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  Federal Register / Vol. 77, No. 21 / Wednesday, February 1, 2012 / 
Rules and Regulations  

[[Page 4885]]



DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

Rural Utilities Service

7 CFR Part 4290

RIN 0570-AA80


Rural Business Investment Program

AGENCY: Rural Business-Cooperative Service and Rural Utilities Service, 
USDA.

ACTION: Correcting amendment.

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

SUMMARY: The Rural Business-Cooperative Service is making several 
technical amendments to correct the Rural Business Investment Program 
(RBIP) regulation, including one to conform to the 2008 Farm Bill 
provision that allows a Rural Business Investment Company two years to 
raise its capital.

DATES: Effective date. This rule is effective February 1, 2012.

FOR FURTHER INFORMATION CONTACT: Michael Foore, U.S. Department of 
Agriculture, 1400 Independence Ave. SW., Washington, DC 20250; 
telephone number: (202) 690-4730; e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

Need for Correction

    On June 8, 2004, the Agency published an Interim Rule for the Rural 
Business Investment Program (RBIP) (69 FR 32200). Since then, the Food, 
Conservation, and Energy Program of 2008 (the 2008 Farm Bill) was 
enacted. The 2008 Farm Bill affects several provisions of the RBIP 
rule, including the amount of time a RBIC has to raise its regulatory 
capital. Specifically, section 6027(c) requires RBICs to have a period 
of two years to meet the capital requirements.
    On December 23, 2011 (76 FR 80217), the Agency published an amended 
RBIP Interim Rule, with request for comment, which addressed, among 
other items, the provisions of the 2008 Farm Bill. One of those changes 
was adding a new paragraph (Sec.  4290.210(c)) that addresses the time 
frame that each RBIC will have to meet the capital requirements. 
However, the Agency did not make a conforming change to Sec.  
4290.390(a)(1), where a 12-month period for raising the regulatory 
capital is referenced. Through this Notice, the Agency is conforming 
Sec.  4290.390(a)(1) to the 2008 Farm Bill by removing reference to the 
12-month period.
    In addition, the Agency is:
     Replacing ``debenture'' with ``licensure'' in the table of 
contents to 7 CFR 4290 and in the title to Sec.  4290.3041;
     Correcting Sec.  4290.3003 to reference the ``Small 
Business Administration'' rather than the ``Small Business 
Association'' and removing an unnecessary reference to the Small 
Business Administration; and
     Correcting the cross-reference to Sec.  4290.340(d) in 
Sec.  4290.3010 to Sec.  4290.340(a) and limiting its applicability to 
ensuring that applicants are evaluated in a fair and consistent manner.

List of Subjects in 7 CFR Part 4290

    Community development, Government securities, Grant programs--
business, Securities, Small businesses.

    For the reasons stated in the preamble, part 4290 of Chapter XLII 
of Title 7 of the Code of Federal Regulations is amended as follows:

CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES 
SERVICE, DEPARTMENT OF AGRICULTURE

PART 4290--RURAL BUSINESS INVESTMENT COMPANY (RBIC) PROGRAM

0
1. The authority citation for part 4290 continues to read as follows:

    Authority: 7 U.S.C. 1989 and 2099cc et seq.


0
2. Paragraph (a)(1) of Sec.  4290.390 is revised to read as follows:


Sec.  4290.390  Licensing as a RBIC.

    (a) * * *
    (1) Raise the specific amount of Regulatory Capital that the 
Applicant had projected in its application that it would raise (see 
Sec.  4290.210 for additional information).
* * * * *

0
3. Section 4290.3003 is revised to read as follows:


Sec.  4290.3003  Responsibilities for implementing Non-leveraged RBICs.

    Section 4290.45 does not apply to Non-leveraged RBICs. Instead, for 
the purposes of this part as it applies to Non-leveraged RBICs, all 
authorities and responsibilities assigned to the Secretary under this 
part shall be carried out by the Secretary. Thus, when applying 
subparts A through N of this part to Non-leveraged RBICs, all 
references to the Small Business Administration (SBA) or Administrator 
on behalf of USDA shall be read as the Secretary. All forms shall be 
submitted to USDA or its designee.


0
4. Paragraph (b) of Sec.  4290.3010 is revised to read as follows:


Sec.  4290.3010  Application and Approval Process for RBIC licensing 
without leverage.

* * * * *
    (b) The provision for evaluating applicants on a competitive basis, 
as specified in Sec.  4290.340(a), does not apply to this subpart.
* * * * *


0
5. The section heading of Sec.  4290.3041 is revised to read as 
follows:


Sec.  4290.3041  Events of default and the Secretary's remedies for 
RBIC's noncompliance with terms of licensure.

* * * * *

    Dated: January 22, 2012.
Dallas Tonsager,
Under Secretary, Rural Development.
[FR Doc. 2012-1969 Filed 1-31-12; 8:45 am]
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