    [Weekly Compilation of Presidential Documents Volume 30, Number 19 (Monday, May 16, 1994)]
    [Pages 1057-1058]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Memorandum on Use of Private Attorneys by the Department of Agriculture

    May 11, 1994

    Memorandum for the Secretary of Agriculture, the Attorney General

        This directive sets forth the terms and conditions under which the
    Department of Agriculture will exercise the authority granted to the
    Secretary of Agriculture pursuant to section 331(c) of the Consolidated
    Farm and Rural Development Act (7 U.S.C. 1981). That authority permits
    the Secretary of Agriculture to contract with private attorneys and use
    Department of Agriculture attorneys for legal services necessary to
    prosecute and defend any claims arising under subsection (b)(5) of
    section 331 of the Consolidated Farm and Rural Development Act (7 U.S.C.
    1981), concerning farmer program loans made by the Farmers Home
    Administration.
        This directive permits, subject to the conditions set forth below,
    foreclosure, deficiency judgment, and debt collection litigation by
    private contract attorneys arising from Farmers Home Administration
    farmer program loans and loan guarantees made pursuant to the
    Consolidated Farm and Rural Development Act, 7 U.S.C. 1921 et seq.
    (hereinafter referred to as ``actions''). The Department of Agriculture
    will refer all other matters arising under the Consolidated Farm and
    Rural Development Act, including all matters in bankruptcy, claims of
    fraud, and appellate proceedings to the Department of Justice. The
    Department of Justice will prosecute such referrals expeditiously, and
    may, in its discretion, with the Department of Agriculture's
    concurrence, refer any action back to the Department of Agriculture.
        The Department of Agriculture agrees that the decision to contract
    with private attorneys for prosecution of actions will be made only upon
    its determination that (a) the private attorney will provide competent
    and cost-effective legal representation and (b) representation by the
    private attorney will accelerate or improve the process by which the
    actions are brought to conclusion.
        Thirty days prior to initiating the process to contract with a
    private attorney for prosecution of actions, the Department of
    Agriculture will inform the appropriate United States Attorney of the
    intent to contract and the basis for such decision.
        Prior to referral by the Department of Agriculture of any action to
    a private attorney, or Department of Agriculture attorney, the
    Department of Agriculture shall notify the Department of Justice. The
    Department of Agriculture shall require that the private counsel or
    Department of Agriculture attorney promptly provide to the appropriate
    United States Attorney copies of all significant pleadings, motions,
    memoranda, orders, and opinions filed in State or Federal court.
        Should any legal or policy issue of general importance to the
    Government arise that pertains to the conduct of actions under this
    agreement, the Department of Agriculture will ensure that the private
    contract attorneys or Department of Agriculture attorneys are made aware
    of guidance issued by the Department of Justice.
        If the Department of Justice determines that the interests of the
    Government are better served through representation by the Department of
    Justice because there exist any significant factors, such as
    counterclaims, claims for equitable relief, multiple Federal agency
    interests, or significant legal or factual issues, of major importance
    to the Government, the Department of Agriculture will promptly withdraw
    the action from private counsel or the Department of Agriculture at-

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    torney and refer the action to the Department of Justice, for
    expeditious disposition. The Department of Agriculture will reserve the
    right to withdraw any case from the control of a private attorney.
        The Department of Agriculture will fulfill its obligations under
    this directive through its Office of General Counsel. The Department of
    Justice will fulfill its obligations under this directive through the
    Civil Division or such other office as the Attorney General may direct.
        The Department of Agriculture will provide to the Department of
    Justice a quarterly report tracking the status of all actions within the
    scope of this directive being pursued by the Department of Agriculture
    attorneys and private contract attorneys, including summary statistics
    to permit evaluation of this directive.
        The Department of Justice will provide to the Department of
    Agriculture a quarterly report tracking the status of all actions within
    the scope of this directive being pursued by the Department of Justice,
    including summary statistics to permit evaluation of this directive.
                                                William J. Clinton

    Note: This memorandum was released by the Office of the Press Secretary
    on May 12.