[Federal Register Volume 83, Number 72 (Friday, April 13, 2018)]
[Notices]
[Pages 16044-16047]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-07720]
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Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
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Federal Register / Vol. 83, No. 72 / Friday, April 13, 2018 /
Notices
[[Page 16044]]
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
Announcement of Application Deadlines and Requirements for
Section 313A Guarantees for Bonds and Notes Issued for Electrification
or Telephone Purposes Loan Program for Fiscal Year (FY) 2018
AGENCY: Rural Utilities Service, USDA.
ACTION: Notice of Solicitation of Applications (NOSA).
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SUMMARY: The Rural Utilities Service (RUS), an agency of the United
States Department of Agriculture (USDA), announces the application
window and requirements for Fiscal Year (FY) 2018 under the Guarantees
for Bonds and Notes Issued for Electrification or Telephone Purposes
Program (the 313A Program) authorized under the Rural Electrification
Act of 1936, as amended, and related terms. The Agency will publish the
amount of funding received in the appropriations act on its website at
https://www.rd.usda.gov/newsroom/notices-solicitation-applications-nosas. Under the 313A Program, the Federal Financing Bank (FFB) will
make loans to the selected applicant(s) and RUS will guarantee the
applicant(s)'s repayment of the loans to FFB. Selected applicants may
use the proceeds of loan funds made available under the 313A Program to
make loans to borrowers for electrification or telecommunications
purposes, or to refinance bonds or notes previously issued by
applicants for such purposes. The proceeds of the guaranteed bonds and
notes are not to be used by applicants to directly or indirectly fund
projects for the generation of electricity.
DATES: Completed applications must be received by RUS no later than
5:00 p.m. Eastern Daylight Time (EDT) on May 31, 2018.
ADDRESSES: Applicants are required to submit one original and two
copies of their loan applications to the U.S. Department of
Agriculture, Rural Utilities Service, Electric Program, ATTN: Amy
McWilliams, Management Analyst, 1400 Independence Avenue SW, Stop 1568,
Room 0226-S, Washington, DC 20250-1568.
FOR FURTHER INFORMATION CONTACT: For further information contact Amy
McWilliams, Management Analyst, 1400 Independence Avenue SW, STOP 1568,
Room 0226-S, Washington, DC 20250-1568. Telephone: (202) 205-8663; or
email: [email protected].
SUPPLEMENTARY INFORMATION:
Overview
Federal Agency: Rural Utilities Service, USDA.
Funding Opportunity Title: Guarantees for Bonds and Notes Issued
for Electrification or Telephone Purposes for Fiscal Year (FY) 2018.
Announcement Type: Guarantees for Bonds and Notes.
Catalog of Federal Domestic Assistance (CFDA) Number: 10.850.
Due Date for Applications: Applications must be received by RUS by
5:00 p.m. Eastern. Daylight Time (EDT) on May 31, 2018.
Items in Supplementary Information
I. Funding Opportunity Description
II. Award Information
III. Eligibility Information
IV. Fiscal Year 2018 Application and Submission Information
V. Application Review Information
VI. Issuance of the Guarantee
VII. Guarantee Agreement
VIII. Reporting Requirements
IX. Award Administration Information
X. National Environmental Policy Act Certification
XI. Other Information and Requirements
XII. Agency Contacts: Website, Phone, Fax, Email, Contact Name
XIII. Non-Discrimination Statement: USDA Non-Discrimination
Statement, How To File a Complaint, Persons With Disabilities
I. Funding Opportunity Description
A. Purpose and Objectives of the 313A Program.
The purpose of the 313A Program is to make guaranteed loans to
selected applicants (each referred to as ``Guaranteed Lender'' in this
NOSA and in the Program Regulations) that are to be used (i) to make
loans for electrification or telecommunications purposes eligible for
assistance under the RE Act (defined herein) and regulations for the
313A Program located at 7 CFR part 1720 (also referred to as the
``Program Regulations'' in this NOSA), or (ii) to refinance bonds or
notes previously issued by the Guaranteed Lender for such purposes. The
proceeds of the guaranteed bonds and notes are not to be used by the
Guaranteed Lender to directly or indirectly fund projects for the
generation of electricity. Each applicant must provide a statement on
how it proposes to use the proceeds of the guaranteed bonds, and the
financial benefit it anticipates deriving from participating in the
program pursuant to 7 CFR 1720.6(a)(3). Objectives may include, but are
not limited to the annual savings to be realized by the ultimate
borrower(s) as a result of the applicant's use of lower cost loan funds
provided by FFB and guaranteed by RUS.
B. Statutory Authority
The 313A Program is authorized by Section 313A of the Rural
Electrification Act of 1936, as amended (7 U.S.C. 940c-1) (the RE Act),
and is implemented by regulations located at 7 CFR 1720. The
Administrator of RUS (the Administrator) has been delegated
responsibility for administering the 313A Program.
C. Definition of Terms
The definitions applicable to this NOSA are published at 7 CFR
1720.3.
D. Application Awards
RUS will review and evaluate applications received in response to
this NOSA based on the regulations at 7 CFR 1720.7, and as provided in
this NOSA.
II. Award Information
Type of Awards: Guaranteed Loans.
Fiscal Year Funds: FY 2018.
Available Funds: https://www.rd.usda.gov/newsroom/notices-solicitation-applications-nosas.
Award Amounts: RUS anticipates making multiple approvals under this
NOSA. The number, amount and terms of awards under this NOSA will
depend in part on the number of eligible applications and the amount of
funds requested. In determining whether or not to make an award, RUS
will take overall program policy objectives into account.
[[Page 16045]]
Due Date for Applications: See under SUPPLEMENTARY INFORMATION
section.
Award Date: Awards will be made on or before September 28, 2018.
Preferred Schedule of Loan Repayment: Amortization Method (level
debt service).
III. Eligibility Information
A. Eligible Applicants
1. To be eligible to participate in the 313A Program, a Guaranteed
Lender must be:
a. A bank or other lending institution organized as a private, not-
for-profit cooperative association, or otherwise organized on a non-
profit basis; and
b. Able to demonstrate to the Administrator that it possesses the
appropriate expertise, experience, and qualifications to make loans for
electrification or telephone purposes.
2. To be eligible to receive a guarantee, a Guaranteed Lender's
bond must meet the following criteria:
a. The Guaranteed Lender must furnish the Administrator with a
certified list of the principal balances of eligible loans outstanding
and certify that such aggregate balance is at least equal to the sum of
the proposed principal amount of guaranteed bonds to be issued,
including any previously issued guaranteed bonds outstanding;
b. The guaranteed bonds to be issued by the Guaranteed Lender would
receive an underlying investment grade rating from a Rating Agency,
without regard to the guarantee; and
3. A lending institution's status as an eligible applicant does not
assure that the Administrator will issue the guarantee sought in the
amount or under the terms requested, or otherwise preclude the
Administrator from declining to issue a guarantee.
B. Other Eligibility Requirements
Applications will only be accepted from lenders that serve rural
areas defined in 7 CFR 1710.2(a) as (i) any area of the United States,
its territories and insular possessions (including any area within the
Federated States of Micronesia, the Marshall Islands, and the Republic
of Palau) other than a city, town, or unincorporated area that has a
population of greater than 20,000 inhabitants; and (ii) any area within
a service area of a borrower for which a borrower has an outstanding
loan as of June 18, 2008, made under titles I through V of the Rural
Electrification Act of 1936 (7 U.S.C. 901-950bb). For initial loans to
a borrower made after June 18, 2008, the ``rural'' character of an area
is determined at the time of the initial loan to furnish or improve
service in the area.
IV. Fiscal Year 2018 Application and Submission Information
A. Applications
All applications must be prepared and submitted in accordance with
this NOSA and 7 CFR 1720.6 (Application Process). To ensure the proper
preparation of applications, applicants should carefully read this NOSA
and 7 CFR part 1720 (available online at http://www.ecfr.gov/cgi-bin/text-idx?SID=9295e45c9a0f6a857d800fbec5dde2fb&mc=true&node=pt7.11.1720&rgn=div5).
B. Content and Form of Submission
In addition to the required application specified in 7 CFR 1720.6,
all applicants must submit the following additional required documents
and materials:
1. Form AD-1047, Certification Regarding Debarment, Suspension, and
Other Responsibility Matters Primary Covered Transactions. This form
contains certain certifications relating to debarment and suspension,
convictions, criminal charges, and the termination of public
transactions (See 2 CFR part 417, and 7 CFR 1710.123.) This form is
available at http://www.ocio.usda.gov/policy-directives-records-forms/forms-management/approved-computer-generated-forms;
2. Restrictions on Lobbying. Applicants must comply with the
requirements relating to restrictions on lobbying activities. (See 2
CFR part 418, and 7 CFR 1710.125.) This form is available at http://www.rd.usda.gov/publications/regulations-guidelines/electric-sample-documents;
3. Uniform Relocation Act assurance statement. Applicants must
comply with 49 CFR part 24, which implements the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, as
amended. (See 7 CFR 1710.124.) This form is available at http://www.rd.usda.gov/publications/regulations-guidelines/electric-sample-documents;
4. Federal debt delinquency requirements. This report indicates
whether or not the applicants are delinquent on any Federal debt (See 7
CFR 1710.126 and 7 CFR 1710.501(a)(13)). This form is available at
http://www.rd.usda.gov/publications/regulations-guidelines/electric-sample-documents;
5. RUS Form 266, Compliance Assurance. Applicants must submit a
non-discrimination assurance commitment to comply with certain
regulations on non-discrimination in program services and benefits and
on equal employment opportunity as set forth in 7 CFR parts 15 and 15b
and 45 CFR part 90. This form is available at; http://www.rd.usda.gov/publications/regulations-guidelines/forms-publications;
6. Articles of incorporation and bylaws. See 7 CFR 1710.501(a)(14).
These are required if either document has been amended since the last
loan application was submitted to RUS, or if this is the applicant's
first application for a loan under the RE Act; and
7. Form AD-3030, Representations Regarding Felony Conviction and
Tax Delinquent Status for Corporation Applications. Applicants are
required to complete this form if they are a corporation. This form is
available at http://www.ocio.usda.gov/policy-directives-records-forms/forms-management/approved-computer-generated-forms.
C. Supplemental Documents for Submission
1. Cash flow projections and assumptions: Each applicant must
include five-year pro-forma cash flow projections or business plans and
clearly state the assumptions that underlie the projections,
demonstrating that there is reasonable assurance that the applicant
will be able to repay the guaranteed loan in accordance with its terms
(See 7 CFR 1720.6(a)(4)).
2. Pending litigation statement: A statement from the applicant's
counsel listing any pending litigation, including levels of related
insurance coverage and the potential effect on the applicant.
V. Application Review Information
A. Application Evaluation
1. Administrator Review. Each application will be reviewed by the
Administrator to determine whether it is eligible under 7 CFR 1720.5,
the information required under 7 CFR 1720.6 is complete, and the
proposed guaranteed bond complies with applicable statutes and
regulations. The Administrator can at any time reject an application
that fails to meet these requirements.
a. Applications will be subject to a substantive review, on a
competitive basis, by the Administrator based upon the evaluation
factors listed in 7 CFR 1720.7(b).
2. Decisions by the Administrator. The Administrator will approve
or deny applications in a timely manner as such applications are
received; provided, however, that in order to facilitate competitive
evaluation of applications, the Administrator may from time to time
defer a decision until more than one application is pending. The
Administrator may limit the number of
[[Page 16046]]
guarantees made to a maximum of five per year, to ensure a sufficient
examination is conducted of applicant requests. RUS will notify the
applicant in writing of the Administrator's approval or denial of an
application. Approvals for guarantees will be conditioned upon
compliance with 7 CFR 1720.4 and 7 CFR 1720.6. The Administrator
reserves the discretion to approve an application for an amount less
than that requested.
B. Independent Assessment
Before a guarantee decision is made by the Administrator, the
Administrator shall request that FFB review the rating agency
determination required by 7 CFR 1720.5(b)(2) as to whether the bond or
note to be issued would receive an investment grade rating without
regard to the guarantee.
VI. Issuance of the Guarantee
The requirements under this section must be met by the applicant
prior to the endorsement of a guarantee by the Administrator (See 7 CFR
1720.8.)
VII. Guarantee Agreement
Each Guaranteed Lender will be required to enter into a Guarantee
Agreement with RUS that contains the provisions described in 7 CFR
1720.8 (Issuance of the Guarantee), 7 CFR 1720.9 (Guarantee Agreement),
and 7 CFR 1720.12 (Reporting Requirements). The Guarantee Agreement
will also obligate the Guaranteed Lender to pay, on a semi-annual
basis, a guarantee fee equal to 30 basis points (0.30 percent) of the
outstanding principal amount of the guaranteed loan (See 7 CFR
1720.10). The ultimate recipients repay the lending utility directly.
The utility is responsible for repayment to USDA.
VIII. Reporting Requirements
Guaranteed Lenders are required to comply with the financial
reporting requirements and pledged collateral review and certification
requirements set forth in 7 CFR 1720.12.
IX. Award Administration Information
Award Notices
RUS will send a commitment letter to an applicant once the loan is
approved. Applicants must accept and commit to all terms and conditions
of the loan which are requested by RUS and FFB as follows:
1. Compliance conditions. In addition to the standard conditions
placed on the section 313A Program or conditions requested by the
Agency to ensure loan security and statutory compliance, applicants
must comply with the following conditions:
a. Each Guaranteed Lender selected under the 313A Program will be
required to post collateral for the benefit of RUS in an amount equal
to the aggregate amount of loan advances made to the Guaranteed Lender
under the 313A Program.
b. The pledged collateral shall consist of outstanding notes or
bonds payable to the Guaranteed Lender (the Eligible Securities) and
shall be placed on deposit with a collateral agent for the benefit of
RUS. To be deemed Eligible Securities that can be pledged as
collateral, the notes or bonds to be pledged (i) cannot be classified
as non-performing, impaired, or restructured under generally accepted
accounting principles, (ii) must be free and clear of all liens other
than the lien created for the benefit of RUS, (iii) cannot be comprised
of more than 30% of bonds or notes from generation and transmission
borrowers, (iv) cannot have more than 5% of notes and bonds be from any
one particular borrower and (v) cannot be unsecured notes.
c. The Guaranteed Lender will be required to place a lien on the
pledged collateral in favor of RUS (as secured party) at the time that
the pledged collateral is deposited with the collateral agent. RUS will
have the right, in its sole discretion, within 14 business days to
reject and require the substitution of any Pledged Collateral that the
Guaranteed Lender deposits as collateral with the collateral agent.
Prior to receiving any advances under the 313A Program, the Guaranteed
Lender will be required to enter into a pledge agreement, satisfactory
to RUS, with a banking institution serving as collateral agent.
d. The Guaranteed Lender will be required to maintain pledged
collateral at a level that is sufficient to ensure that in the event of
default resources will be available to cover principal, interest, fees
and reasonable expenses incurred by RUS as a result of a default or
incurred pursuant to RUS's obligation to make related payments to FFB
under the RUS Guarantee on all guarantees issued by RUS to FFB for the
benefit of the Guaranteed Lender under Section 313A of the RE Act. The
Guaranteed Lender will also be required to agree that the pledged
collateral can be used for such purposes.
e. The Guaranteed Lender will be required to agree to not to take
any action that would have the effect of reducing the value of the
Pledged Collateral below the level described above.
f. Applicants must certify to the RUS, the portion of their
Eligible Loan portfolio that is:
(1) Refinanced RUS debt;
(2) Debt of borrowers for whom both RUS and the applicants have
outstanding loans;
and
(3) Debt of borrowers for whom both RUS and the applicant have
outstanding concurrent loans pursuant to Section 307 of the RE Act, and
the amount of Eligible Loans.
2. Compliance with Federal Laws. Applicants must comply with all
applicable Federal laws and regulations.
a. This obligation is subject to the provisions contained in the
Consolidated Appropriations Act, 2018, Public Law 115-141, Division E,
Title VII, Sections 745 and 746, as amended and/or subsequently enacted
for USDA agencies and offices, regarding the prohibition against RUS
making awards to applicants having corporate felony convictions within
the past 24 months or to applicants having corporate federal tax
delinquencies.
b. An authorized official within your organization must execute,
date, and return the loan commitment letter and the Assurance Regarding
Felony Conviction or Tax Delinquent Status for Corporate Applicants
(Form AD-3031) to RUS within 14 calendar days from the date of the loan
commitment letter, or by September 28, 2018, if the loan is approved
after September 17, 2018; otherwise, the commitment will be void. This
form is available at http://www.ocio.usda.gov/policy-directives-records-forms/forms-management/approved-computer-generated-forms.
c. Uniform Commercial Code (UCC) Filing. The Borrower must provide
RUS with evidence that the Borrower has filed the UCC financing
statement required by 7 CFR 1720.8(a)(2). Upon filing of the
appropriate UCC financing statement, the Guaranteed Lender will provide
RUS with a perfection opinion by outside counsel which demonstrates
that RUS's security interest in the Pledged Collateral under the Pledge
Agreement is perfected.
d. Additional conditions may be instituted for future obligations.
X. National Environmental Policy Act Certification
For any proceeds to be used to refinance bonds and notes previously
issued by the Guaranteed Lender for the RE Act purposes that are not
obligated with specific projects, RUS has determined that these
financial actions will not individually or cumulatively have a
significant effect on the human environment as defined by the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and its
implementing regulations at 40 CFR
[[Page 16047]]
parts 1500-1508. However, for any new projects funded through the 313A
Program, applicants must consult with RUS and comply with the Agency
regulations at 7 CFR part 1970.
XI. Other Information and Requirements
Applications must contain all of the required elements of this NOSA
and all standard requirements as required by 7 CFR part 1720.
Additional supporting data or documents may be required by RUS
depending on the individual application or financial conditions. All
applicants must comply with all Federal Laws and Regulations.
XII. Agency Contacts
A. Website: http://www.rd.usda.gov/programs-services/all-programs/electric-programs.
B. Phone: (202) 205-8663.
C. Fax: (844) 749-0736.
D. Email: [email protected].
E. Main point of contact: Amy McWilliams, Management Analyst, 1400
Independence Avenue SW, STOP 1568, Room 0226-S, Washington, DC 20250-
1568.
XIII. USDA Non-Discrimination Statement
In accordance with Federal civil rights law and U.S. Department of
Agriculture (USDA) civil rights regulations and policies, the USDA, its
Agencies, offices, and employees, and institutions participating in or
administering USDA programs are prohibited from discriminating based on
race, color, national origin, religion, sex, gender identity (including
gender expression), sexual orientation, disability, age, marital
status, family/parental status, income derived from a public assistance
program, political beliefs or reprisal or retaliation for prior civil
rights activity, in any program or activity conducted or funded by USDA
(not all bases apply to all programs). Remedies and complaint filing
deadlines vary by program or incident.
Persons with disabilities who require alternative means of
communication for program information (e.g., Braille, large print,
audiotape, American Sign Language, etc.) should contact the responsible
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or
contact USDA through the Federal Relay Service at (800) 877-8339.
Additionally, program information may be made available in languages
other than English.
To file a program discrimination complaint, complete the USDA
Program Discrimination Complaint Form, AD-3027. Individuals wishing to
file a discrimination complaint may use the form available at http://www.ocio.usda.gov/policy-directives-records-forms/forms-management/approved-computer-generated-forms and at any USDA office, or may write
a letter addressed to USDA and provide in the letter all of the
information requested in the form. To request a copy of the complaint
form, call (866) 632-9992. Submit your completed form or letter to USDA
by:
(1) Mail: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC
20250-9410;
(2) Fax: (202) 690-7442; or
(3) Email: [email protected]. USDA is an equal opportunity
provider, employer, and lender.
Authority: 7 U.S.C. 940c-1.
Dated: March 28, 2018.
Christopher A. McLean,
Acting Administrator, Rural Utilities Service.
[FR Doc. 2018-07720 Filed 4-12-18; 8:45 am]
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