Unknown. Final rule

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--- schema: federal-register doc_type: fedreg source_file: FR-2001-01-24.xml --- 66 16 Wednesday, January 24, 2001 Contents Agency Agency for Healthcare Research and Quality NOTICES Organization, functions, and authority delegations: Center for Quality Improvement and Patient Safety, 7653 01-2064 Agriculture Agriculture Department See Animal and Plant Health Inspection Service See Cooperative State Research, Education, and Extension Service See Farm Service Agency See Natural Resources Conservation Service See Rural Business-Cooperative Service See Rural Housing Service See Rural Utilities Service NOTICES Committees; establishment, renewal, termination, etc.:

Intergovernmental Advisory Committee, 7614 01-2123 Animal Animal and Plant Health Inspection Service NOTICES Reports and guidance documents; availability, etc.: Residual formaldehyde and residual moisture testing, 7614-7615 01-2165 Centers Centers for Disease Control and Prevention NOTICES Committees; establishment, renewal, termination, etc.: Healthcare Infection Control Practices Advisory Committee, 7653 01-2107 Meetings: Immunization Practices Advisory Committee, 7653-7654 01-2109 National Vaccine Advisory Committee, 7654 01-2108 Children Children and Families Administration NOTICES Agency information collection activities:

Submission for OMB review; comment request, 7654-7655 01-2157 Organization, functions, and authority delegations: Principal Deputy Assistant Secretary, 7655 01-2060 Commerce Commerce Department See International Trade Administration See National Institute of Standards and Technology See National Oceanic and Atmospheric Administration See National Telecommunications and Information Administration NOTICES Agency information collection activities: Submission for OMB review; comment request, 7616-7617 01-2121 Cooperative Cooperative State Research, Education, and Extension Service NOTICES Grants and cooperative agreements; availability, etc.:

Higher Education Challenge Program, 7695-7699 01-1721 Education Education Department NOTICES Grants and cooperative agreements; availability, etc.: Developing Hispanic-Serving Institutions Program, 7632-7633 01-2112 Meetings: Foreign Medical Education and Accreditation National Committee, 7633-7634 01-2116 Employment Employment and Training Administration NOTICES Adjustment assistance: Western Supplies et al., 7663-7664 01-1903 Energy Energy Department See Federal Energy Regulatory Commission EPA Environmental Protection Agency NOTICES Confidential business information and data transfer, 7642-7643 01-1830 Meetings:

Global Change Research Program; Research Strategy; peer review workshop, 7643-7644 01-2178 Pesticide, food, and feed additive petitions: Aventis CropScience, 7644-7648 01-2182 Reports and guidance documents; availability, etc.: Pesticide guidelines; plant commodity table; update, 7648-7650 01-2183 Executive Executive Office of the President See Presidential Documents See White House Office Farm Farm Service Agency RULES Program regulations: Farm Service Agency guaranteed loans; loan limitations and cash flow requirements, 7565-7568 01-1751 FAA Federal Aviation Administration RULES Airworthiness directives:

Boeing, 7568-7577 01-1660 01-1662 Construcciones Aeronauticas, S.A. (CASA), 7575-7576 01-1661 FCC Federal Communications Commission RULES Common carrier services: Terminal equipment, connection to telephone network— Customer premises equipment; technical criteria and registration streamlining; biennial review, 7579-7589 01-1034 Radio stations; table of assignments: Various States, 7589-7590 01-1982 PROPOSED RULES Radio services, special: Fixed microwave services— Multichannel video and data distribution service; 12.2-12.7 GHz band, 7607-7613 01-1905 Radio stations; table of assignments:

California, 7607 01-1983 Georgia, 7606-7607 01-1981 Federal Energy Federal Energy Regulatory Commission NOTICES Agency information collection activities: Proposed collection; comment request, 7634-7635 01-2069 01-2070 Electric rate and corporate regulation filings: Valley Electric Association, Inc., et al., 7640-7642 01-2065 Environmental statements; availability, etc.: Santa Barbara, CA, 7642 01-2071 *Applications, hearings, determinations, etc.:* Big West Oil Co., 7636 01-2077 Granite State Gas Transmission, Inc., 7636 01-2076 Gulf South Pipeline Co., L.P., 7636 01-2073 Natural Gas Pipeline Co. of America, 7637 01-2074 Nekoosa Packaging Corp., 7637 01-2068 Northern Natural Gas Co., 7637-7638 01-2072 Northern States Power Co., 7638 01-2067 Ozark Gas Transmission, L.L.C., 7638 01-2075 Trailblazer Pipeline Co., 7638-7640 01-2066 Federal Highway Federal Highway Administration NOTICES Environmental statements; notice of intent:

Rock Island County, IL, et al., 7692-7693 01-2156 Federal Housing Federal Housing Finance Board NOTICES Federal home loan bank system: Membership; applications, petitions, etc.— Washington Mutual Bank, FA, 7650-7651 01-2129 FMC Federal Maritime Commission NOTICES Agreements filed, etc., 7651 01-2190 Ocean transportation intermediary licenses: AFS Projects & Logistics

(USA)et al., 7651 01-2192 Seaspeed Overseas Shipping Co., Inc., et al., 7651-7652 01-2191 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies: Change in bank control, 7652 01-2168 Formations, acquisitions, and mergers, 7652 01-2167 Meetings; Sunshine Act, 7652-7653 01-2247 Fish Fish and Wildlife Service NOTICES Grants and cooperative agreements; availability, etc.: Wildlife Conservation and Restoration and State Wildlife Programs, 7657-7660 01-2119 National Wildlife Refuge System: Kingman Reef National Wildlife Refuge, Pacific Ocean; establishment, 7660 01-2148 Palmyra Atoll National Wildlife Refuge, Pacific Ocean; establishment, 7660-7661 01-2149 Food Food and Drug Administration RULES Animal drugs, feeds, and related products: Ivermectin liquid, 7579 01-1865 Ivermectin otic suspension, 7577-7578 01-1869 Health Health and Human Services Department See Agency for Healthcare Research and Quality See Centers for Disease Control and Prevention See Children and Families Administration See Food and Drug Administration See Health Care Financing Administration See Health Resources and Services Administration See Indian Health Service Health Health Care Financing Administration PROPOSED RULES Medicare: Medicare+Choice appeal and grievance procedures; improvements, 7593-7606 01-1864 Health Health Resources and Services Administration NOTICES Meetings: Infant Mortality Advisory Committee, 7655 01-2130 Immigration Immigration and Naturalization Service NOTICES Agency information collection activities: Proposed collection; comment request, 01-2061 7662-7663 01-2062 Indian Indian Health Service NOTICES Medical care: Reimbursement rates for 2001 CY, 7655-7656 01-2131 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau NOTICES Committees; establishment, renewal, termination, etc.: Joint Fire Science Program Stakeholders Advisory Group, 7656 01-2128 International International Trade Administration NOTICES Antidumping: Cut-to-length carbon steel plate from— Canada, 7617-7619 01-2054 Mexico, 7619-7620 01-2055 Stainless steel bar from— Various countries, 7620-7626 01-2057 Countervailing duties: Iron-metal castings from— India, 7627 01-2056 *Applications, hearings, determinations, etc.:* Rensselaer Polytechnic Institute et al., 7626-7627 01-2058 Justice Justice Department See Immigration and Naturalization Service See Parole Commission Labor Labor Department See Employment and Training Administration Land Land Management Bureau NOTICES Environmental statements; availability, etc.: Rock Springs, WY; wild horse gathering activity, 7661 01-1946 Survey plat filings: Nevada, 7661-7662 01-1887 National Institute National Institute of Standards and Technology NOTICES Grants and cooperative agreements; availability, etc.: Small grants programs; correction, 7627-7628 01-2122 NOAA National Oceanic and Atmospheric Administration RULES Fishery conservation and management: Caribbean, Gulf, and South Atlantic fisheries— Coastal migratory pelagic resources, 7591-7592 01-2105 NOTICES Meetings: Caribbean Fishery Management Council, 7628 01-2022 Mid-Atlantic Fishery Management Council, 7628-7629 01-2023 New England Fishery Management Council, 7629 01-2024 North Pacific Fishery Management Council, 7629, 7631 01-2020 01-2021 National Science National Science Foundation NOTICES Meetings: Civil and Mechanical Systems Special Emphasis Panel, 7664 01-2160 01-2161 Graduate Education Special Emphasis Panel, 7664-7665 01-2158 01-2159 National Telecommunications National Telecommunications and Information Administration NOTICES Meetings: Ultrawideband systems testing results, 7631 01-2113 NRCS Natural Resources Conservation Service NOTICES Environmental statements; availability, etc.: Cheniere Au Tigre Shoreline Protection Demonstration Project, LA, 7615-7616 01-1886 Nuclear Nuclear Regulatory Commission NOTICES Operating licenses, amendments; no significant hazards considerations; biweekly notices, 7667-7690 01-1987 *Applications, hearings, determinations, etc.:* Entergy Nuclear Operations, Inc., 7665-7667 01-2114 Parole Parole Commission NOTICES Meetings; Sunshine Act, 7663 01-2265 Presidential Presidential Documents ADMINISTRATIVE ORDERS Middle East peace process; state of emergency (Notice of January 19, 2001)[ **Editorial Note:** The entry for this document, published at 66 FR 7371 in the **Federal Register** of January 22, 2001, was inadvertently omitted from that issue's table of contents.] Public Public Health Service See Agency for Healthcare Research and Quality See Centers for Disease Control and Prevention See Food and Drug Administration See Health Resources and Services Administration See Indian Health Service Rural Rural Business-Cooperative Service RULES Program regulations: Farm Service Agency guaranteed loans; loan limitations and cash flow requirements, 7565-7568 01-1751 Rural Rural Housing Service RULES Program regulations: Farm Service Agency guaranteed loans; loan limitations and cash flow requirements, 7565-7568 01-1751 RUS Rural Utilities Service RULES Program regulations: Farm Service Agency guaranteed loans; loan limitations and cash flow requirements, 7565-7568 01-1751 NOTICES Environmental statements; availability, etc.: Combustion turbines purchase by borrowers prior to site specific environmental review completion; front end financing approval, 7616 01-2154 Georgia Transmission Corp., 7616 01-2153 SEC Securities and Exchange Commission NOTICES Agency information collection activities: Submission for OMB review; comment request, 7690 01-2124 Social Social Security Administration NOTICES Agency information collection activities: Proposed collection and submission for OMB review; comment request, 7690-7692 01-2150 State State Department NOTICES Meetings: Public Diplomacy, U.S. Advisory Commission, 7692 01-2036 Transportation Transportation Department See Federal Aviation Administration See Federal Highway Administration RULES Workplace drug and alcohol testing programs: Procedures; revision; meetings, 7590-7591 01-2000 Veterans Veterans Affairs Department NOTICES Meetings: Veterans Readjustment Advisory Committee, 7693 01-2115 White White House Office NOTICES Regulatory review plan (Memorandum of January 20, 2001), 7701-7702 01-2368 Separate Parts In This Issue Part II Department of Agriculture, Cooperative State Research, Education, and Extension Service, 7695-7699 01-1721 Part III Executive Office of the President, White House Office, 7701-7702 01-2368 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. 66 16 Wednesday, January 24, 2001 Rules and Regulations DEPARTMENT OF AGRICULTURE Farm Service Agency Rural Business-Cooperative Service Rural Housing Service Rural Utilities Service 7 CFR Parts 761, 762, 1901, 1941, 1943, 1945, 1955, and 1965 RIN 0560-AG15 Loan Limitations and Cash Flow Requirements for Farm Service Agency Guaranteed Loans AGENCY: Farm Service Agency, USDA. ACTION: Final rule. SUMMARY: This rule amends the Farm Service Agency

(FSA)guaranteed loan regulations to remove the requirement that the Agency consider the costs of replacing capital items when considering whether a guaranteed loan customer has adequate capacity for debt service. Also, this rule provides for the adjustment of maximum guaranteed loan limits annually based on an index of prices paid by farmers and moves all loan limitation provisions to part 761. Finally, this rule updates and clarifies provisions in the guaranteed loan regulation. DATES: Effective on February 23, 2001. FOR FURTHER INFORMATION CONTACT: For additional information contact Phillip Elder, Senior Loan Officer, FSA, USDA, Farm Loan Programs Loan Servicing Division, Room 6966-S, STOP 0523, 1400 Independence Avenue, SW, Washington, DC 20250-0523, telephone

(202)690-4012. SUPPLEMENTARY INFORMATION: Executive Order 12866 This rule was reviewed by the Office of Management and Budget under Executive Order 12866 and has been determined to be significant. Regulatory Flexibility Act In compliance with the Regulatory Flexibility Act, Public Law 96-534, (5 U.S.C. 601), the undersigned has determined and certified by signature on this document that this rule will not have a significant economic impact on a substantial number of small entities. FSA program participants are predominantly family sized farmers and ranchers and, as defined by the U.S. Small Business Administration, approximately 98 percent of all farmers are classified as small businesses. Still, this rule does not involve a new or expanded program and the provisions in this rule will not impact a substantial number of small entities to a greater extent than large entities. The intent of this rule is to reduce confusion and implement legislation. Program participation is voluntary and requires no direct action on the part of small entities. Thus, large entities are subject to these rules to the same extent as small entities. Therefore, a regulatory flexibility analysis was not performed. Environmental Impact Statement It is the determination of FSA that this action is not a major Federal action significantly affecting the environment. Therefore, in accordance with the National Environmental Policy Act of 1969, Public Law 91-190, and 7 CFR part 1940, subpart G, an Environmental Impact Statement is not required. Executive Order 12988 This rule has been reviewed in accordance with E.O. 12988, Civil Justice Reform. In accordance with that Executive Order:

(1)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 that these changes apply to loans guaranteed prior to the effective date of the rule; and

(3)administrative proceedings in accordance with 7 CFR parts 11 and 780 must be exhausted before requesting judicial review. Executive Order 12372 The notice related to 7 CFR part 3015, subpart V (48 FR 29115, June 24, 1983) found the programs and activities within this rule are excluded from the scope of Executive Order 12372, which requires intergovernmental consultation with State and local officials. Executive Order 13132 It has been determined under section 1(a) of Executive Order 13132, Federalism, that this rule does not have sufficient implications to warrant consultation with the States. The provisions contained in this rule will not have a substantial direct effect on States, or on the relationship between the national government and the States, or on the distribution of power and responsibilities among various levels of government. Unfunded Mandates Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), requires Federal agencies to assess the effects of their regulatory actions on State, local, and tribal governments or the private sector. Agencies generally must prepare a written statement, including a cost/benefit assessment, for proposed and final rules with “Federal mandates” that may result in expenditures of $100 million or more in any 1 year for State, local, or tribal governments, in the aggregate, or to the private sector. UMRA generally requires agencies to consider alternatives and adopt the more cost-effective or least burdensome alternative that achieves the objectives of the rule. The rule contains no Federal mandates, as defined by title II of the UMRA, for State, local, and tribal governments or the private sector. Thus, this rule is not subject to the requirements of sections 202 and 205 of UMRA. Paperwork Reduction Act The amendments to 7 CFR, chapters VII and XVIII, contained in this final rule require no revisions to the information collection requirements that were previously approved by OMB under control numbers 0560-0155, 0560-0157, 0560-0158, and 0560-0162. This change will not affect the number of respondents or the burden hours approved under these or any other control numbers. Federal Assistance Program These changes affect the following FSA programs as listed in the Catalog of Federal Domestic Assistance: 10.406—Farm Operating Loans 10.407—Farm Ownership Loans Discussion of the Final Rule This rule primarily amends the regulations under 7 CFR part 762 “Guaranteed Farm Loans” that govern the guaranteed farm loan programs of FSA. Part 762 was published as a final rule on February 12, 1999 (64 FR 7358-7403), to replace the former regulations for FSA guaranteed farm loans and those of its predecessor Agency, the Farmers Home Administration (FmHA). FmHA was abolished by the Department of Agriculture Reorganization Act of 1994 (Public Law 103-154, October 13, 1994). Since publication of part 762, legislation has deleted some of the regulation's requirements and changed how others are administered. Also, implementation of the regulation in USDA field offices has prompted the clarification of some provisions. For example, provisions that require the lender to execute a modification of the guarantee in certain instances are amended to state that any modification of the guarantee also must be executed by FSA. Another example is the removal of extraneous provisions in § 762.150 that limit when a loan with interest assistance can be considered for restructuring. This rule removes the provision that requires an applicant to have a “positive cash flow,” with a 10-percent margin above debt service requirements in order to be eligible for a guaranteed loan. Consistently, this rule also removes the requirement for a cash flow margin in order to be approved for interest assistance and annual continuation of interest assistance subsidy. The 10-percent margin requirement is removed in accordance with § 3019 of the 1999 Emergency Supplemental Appropriations Act (Public Law 106-31, May 21, 1999), which revised § 339(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1989 *et seq.* ) (CONACT) to remove the words, “including expenses of replacing capital items (determined after taking into account depreciation of the items)” from its debt service margin requirement. The Agency will instead require lenders to certify that guaranteed loan applicants demonstrate only a “feasible plan,” a term that is defined in § 762.102 as the ability to cash flow (meet debts and other expenses), but requiring no capital replacement margin. Also, this rule amends the Agency regulations that govern the size of loan that may be guaranteed by the Agency. Section 806 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999 (Public Law 105-277, October 21, 1998) (1999 Act) amended the guaranteed loan limits of §§ 305 and 313 of the CONACT. The 1999 Act adjusted the limitations on the amount of farm ownership and farm operating loans based on the rate of inflation applicable to the fiscal year. This percentage change in the maximum loan size is determined by the percentage change in the Prices Paid by Farmers Index as compiled by the USDA, National Agricultural Statistics Service. The Agency is implementing this change by publishing a new section for all updated loan limitations at 7 CFR 761.8 (General and Administrative) and deleting the dollar loan maximum provisions in 7 CFR 762.122, 1941.29, 1943.29, 1943.79, and 1945.163. The new section refers to direct and guaranteed Soil and Water loans, which are no longer being funded. However, a few such loans are outstanding. Other conforming changes are being made to provisions governing loan limitations, and Agency approval authorities are being removed as obsolete and unnecessary, in 7 CFR parts 1901, 1941, 1943, 1945, 1955, and 1965. Tables of loan approval authorities by official title and maximum loan amount will still be available at each local Agency office. In accordance with 5 U.S.C. 553, the Agency has determined that a notice or proposed rule is unnecessary for the clarifications and amendments made in this rule because they involve nondiscretionary statutory requirements and clarifications of current Agency policy, not substantive revisions to program requirements. List of Subjects 7 CFR Part 761 Accounting, Agriculture, Loan programs—agriculture, Rural areas. 7 CFR Part 762 Agriculture, Loan programs—agriculture, Reporting and recordkeeping requirements. 7 CFR Part 1901 Agriculture, Authority delegations, Grant programs—agriculture. 7 CFR Part 1941 Agriculture, Crops, Livestock, Loan programs—agriculture, Rural areas, Youth. 7 CFR Part 1943 Agriculture, Crops, Loan programs—agriculture, Recreation, Water resources. 7 CFR Part 1945 Agriculture, Disaster assistance, Loan programs—agriculture. 7 CFR Part 1955 Agriculture, Foreclosure, Government property, Loan programs—agriculture, Sale of government acquired property, Surplus government property. 7 CFR Part 1965 Accounting, Foreclosure, Loan programs—agriculture, Rural areas. Accordingly, 7 CFR is amended as follows: PART 761—GENERAL AND ADMINISTRATIVE 1. The authority citation for part 761 is revised to read as follows: Authority: 5 U.S.C. 301, 7 U.S.C. 1989. Subpart A—General Provisions 2. Section 761.8 is added to read as follows: § 761.8 Loan limitations.

(a)*Dollar limits.* The outstanding principal balances for a farm loan applicant or anyone who will sign the promissory note cannot exceed the following:

(1)Farm Ownership loans, Beginning Farmer Down payment loans and Soil and Water loans:

(i)Direct—$200,000;

(ii)Guaranteed—$731,000 (Fiscal Year 2001);

(iii)Any combination of a direct Soil and Water loan, direct Farm Ownership loan, guaranteed Soil and Water loan, and guaranteed Farm Ownership loan—$731,000 (Fiscal Year 2001);

(2)Operating loans:

(i)Direct—$200,000

(ii)Guaranteed—$731,000 (Fiscal Year 2001)

(iii)Any combination of a direct Operating loan and guaranteed Operating loan—$731,000 (Fiscal Year 2001);

(3)Any combination of guaranteed Farm Ownership loan, guaranteed Soil and Water loan, and guaranteed Operating loan—$731,000 (Fiscal Year 2001);

(4)Any combination of direct Farm Ownership loan, direct Soil and Water loan, direct Operating loan, guaranteed Farm Ownership loan, guaranteed Soil and Water loan, and guaranteed Operating loan—$931,000 (Fiscal Year 2001);

(5)Emergency loans—$500,000;

(6)Any combination of direct Farm Ownership loan, direct Soil and Water loan, direct Operating loan, guaranteed Farm Ownership loan, guaranteed Soil and Water loan, guaranteed Operating loan, and Emergency loan—$1,431,000 (Fiscal Year 2001).

(b)*Adjustment.* The dollar limits of guaranteed loans will be adjusted each fiscal year based on the percentage change in the Prices Paid by Farmers Index as compiled by the USDA, National Agricultural Statistics Service (NASS).

(c)*Line of credit advances.* The total dollar amount of guaranteed line of credit advances and income releases cannot exceed the total estimated expenses, less interest expense, as indicated on the borrower's cash flow budget, unless the cash flow budget is revised and continues to reflect a feasible plan. PART 762—GUARANTEED FARM LOANS 3. The authority citation for part 762 is revised to read as follows: Authority: 5 U.S.C. 301, 7 U.S.C. 1989. 4. In § 762.102 the definition of “Positive cash flow” is removed and the definition of “Feasible plan” is revised to read as follows: § 762.102 Abbreviations and definitions.

(b)* * * *Feasible plan.* A plan is feasible when a borrower or applicant's cash flow budget indicates that there is sufficient cash inflow to pay all cash outflow each year during the term of the loan. If a loan approval or restructuring action exceeds one production cycle and the planned cash flow budget is atypical due to cash or inventory on hand, new enterprises, carryover debt, atypical planned purchases, important operating changes, or other reasons, a cash flow budget must be prepared that reflects a typical cycle. If the request is for only one cycle, a feasible plan for only one cycle is required for approval. 5. Section 762.105 is amended by removing and reserving paragraph (c)(2)(iii) and revising paragraph (c)(1) to read as follows: § 762.105 Eligibility and substitution of lenders.

(c)* * *

(1)The Agency approves of the substitution in writing by executing a modification of the guarantee to identify the new lender, the amount of debt at the time of the substitution and any new loan terms if applicable. § 762.122 [Amended] 6. In § 762.122, paragraphs

(a)and

(b)are removed and paragraphs (c), (d), (e), and

(f)are redesignated as (a), (b), (c), and

(d)respectively. 7. Sections 762.125(a)(2), (a)(3), (a)(6) and (a)(8) are revised to read as follows: § 762.125 Financial feasibility.

(a)* * *

(2)The loan applicant's proposed operation must project a feasible plan as defined in § 762.102(b).

(3)For standard eligible lenders, the projected income and expenses of the borrower and operation used to determine a feasible plan must be based on the loan applicant's proven record of production and financial management.

(6)The cash flow budget analyzed to determine a feasible plan must represent the predicted cash flow of the operating cycle.

(8)When a feasible plan depends on income from other sources in addition to income from owned land, the income must be dependable and likely to continue. 8. Section 762.142(d)(8) is revised to read as follows: § 762.142 Servicing related to collateral.

(d)* * *

(8)The Agency approves the transfer and assumption by executing a modification of the guarantee to designate the party that assumed the guaranteed debt, the amount of debt at the time of the assumption, including interest that is being capitalized, and any new loan terms, if applicable. 9. Section 762.145(b)(6)(iv) is revised to read as follows: § 762.145 Restructuring guaranteed loans.

(b)* * *

(6)* * *

(iv)The Agency will execute a modification of guarantee form to identify the new loan principal and the guaranteed portion if greater than the original loan amounts, and to waive the restriction on capitalization of interest, if applicable, to the existing guarantee documents. The modification form will be attached to the original guarantee as an addendum. 10. Section 762.146(e)(9) is revised to read as follows: § 762.146 Other servicing procedures.

(e)* * *

(9)The Agency approves the consolidation by executing a modification of guarantee. The modification will indicate the consolidated loan amount, new terms, and percentage of guarantee, and will be attached to the originals of the guarantees being consolidated. If loans with a different guarantee percentage are consolidated, the new guarantee will be at the lowest percentage of guarantee being consolidated. 11. Section 762.150(a)(1), (a)(1)(i), (b)(2), (b)(3), (b)(4) and (g)(2) are revised to read as follows: § 762.150 Interest assistance program.

(a)*Requests for interest assistance.*

(1)To apply for interest assistance in conjunction with a new request for guarantee, the lender will submit the following:

(i)A completed cash flow budget and interest assistance needs analysis portion of the application form. Interest assistance can be applied to each loan, only to one loan or any distribution the lender selects; however, interest assistance is only available on as many loans as necessary to achieve a feasible plan.

(b)* * *

(2)The lender must document that a feasible plan, as defined in § 762.102(b), is not possible without reducing the interest rate on the borrower's loan and with the debt restructured over the term of repayment.

(3)The lender must determine whether the borrower, including members of an entity, owns any significant assets that do not contribute directly to essential family living or farm operations. The lender must determine the market value of these assets and prepare a cash flow budget based on the assumption that the value of these assets will be used for debt reduction. If a feasible plan can then be achieved, the borrower is not eligible for interest assistance. All interest assistance calculations will be based on the cash flow budget which assumes that the assets will be sold.

(4)A borrower's new guaranteed loan is eligible for interest assistance if all the following conditions are met:

(i)The applicant needs interest assistance in order to achieve a feasible plan.

(ii)If significant changes in the borrower's cash flow budget are anticipated after the initial 12 months, then the typical cash flow budget must demonstrate that the borrower will still have a feasible plan, following the anticipated changes, with or without interest assistance.

(iii)If a feasible plan cannot be achieved, even with other creditors voluntarily adjusting their debts and with the interest assistance, the interest assistance request will not be approved.

(g)* * *

(2)The loan will be transferred with the interest assistance agreement only in cases where the transferee was liable for the debt at the time interest assistance was granted. Under no other circumstances will the interest assistance be transferred. If interest assistance is necessary for the transferee to achieve a feasible plan, the lender may request such assistance, which may be approved if interest assistance funds are available and the applicant is eligible. The maximum length of the agreement will be 10 years from the date of the first agreement covering a loan for which the transferee was liable. If interest assistance is necessary for a feasible plan and funds are not available, the request for assumption of the Agency guaranteed debt will be denied. PART 1901—PROGRAM RELATED INSTRUCTIONS 12. The authority citation for part 1901 is revised to read as follows: Authority: 5 U.S.C. 301, 7 U.S.C. 1989, 42 U.S.C. 1480. Subpart A—[Reserved] 13. Subpart A is removed and reserved. PART 1941-OPERATING LOANS 14. The authority citation for part 1941 continues to read as follows: Authority: 5 U.S.C. 301, 7 U.S.C. 1989. Subpart A—Operating Loan Policies, Procedures and Authorizations 15. Section 1941.29 is amended by revising the section heading, removing paragraph (d), and revising paragraph

(b)to read as follows: § 1941.29 Relationship between FSA loans, direct and guaranteed.

(b)A direct OL may be made to a guaranteed loan borrower provided the requirements of 7 CFR 761.8 and all other loan requirements are met. PART 1943—FARM OWNERSHIP, SOIL AND WATER AND RECREATION 16. The authority citation for part 1943 continues to read as follows: Authority: 5 U.S.C. 301, 7 U.S.C. 1989. Subpart A—Direct Farm Ownership Loan Policies, Procedures and Authorizations 17. Section 1943.29 is amended by revising the section heading, removing paragraph (c), redesignating paragraph

(d)as paragraph (c), and revising paragraph

(b)to read as follows: § 1943.29 Relationship between FSA loans, direct and guaranteed.

(b)A direct FO may be made to a guaranteed loan borrower provided the requirements of 7 CFR 761.8 and all other loan requirements are met. 18. Section 1943.79 is removed and reserved. § 1943.79 [Reserved] PART 1945—EMERGENCY 19. The authority citation for part 1945 is revised to read as follows: Authority: 5 U.S.C. 301; 7 U.S.C. 1989. Subpart D—Emergency Loan Policies, Procedures and Authorizations 20. In § 1945.154 paragraph

(a)is amended by revising the definition of “Approval official” to read as follows: § 1945.154 Definitions and abbreviations. *Approval official. * An Agency official who has been delegated farm loan program loan approval authority in accordance with the title of the employee and the dollar amount of the loan as set out in tables available in any local Agency office. 21. Section 1945.163(e) is amended by removing the last sentence. PART 1955—PROPERTY MANAGEMENT 22. The authority citation for part 1955 continues to read as follows: Authority: 5 U.S.C. 301, 7 U.S.C. 1989, 42 U.S.C. 1480. Subpart A—Liquidation of Loans Secured by Real Estate and Acquisition of Real and Chattel Property § 1955.10 Voluntary conveyance of real property by the borrower to the Government. 23. Section 1955.10(a)(1)(ii) is removed and reserved. Subpart C—Disposal of Inventory Property § 1955.104 Authorities and responsibilities. 24. Section 1955.104(c) is removed. PART 1965—REAL PROPERTY 25. The authority citation for part 1965 continues to read as follows: Authority: 5 U.S.C. 301, 7 U.S.C. 1989, 42 U.S.C. 1480. Subpart A—Servicing of Real Estate Security for Farm Loan Programs Loans and Certain Note-Only Cases § 1965.13 Consent by partial release or otherwise to sale, exchange or other disposition of a portion of or interest in security, except leases. 26. Section 1965.13 is amended by removing paragraph (e)(1) and redesignating paragraphs (e)(2) and

(3)as (e)(1) and

(2)respectively. § 1965.27 Transfer of real estate security. 27. Section 1965.27(a) is removed and reserved. Dated: January 12, 2001. Jill Long Thompson, Under Secretary for Rural Development. Dated: January 12, 2001. August Schumacher, Under Secretary for Farm and Foreign Agricultural Services. [FR Doc. 01-1751 Filed 1-23-01; 8:45 am]

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