Unknown. Interim final rule with request for comments

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2004-11-09.xml --- 69 216 Tuesday, November 9, 2004 Contents Advisory Advisory Council on Historic Preservation See Historic Preservation, Advisory Council Agriculture Agriculture Department See Farm Service Agency See Food Safety and Inspection Service See Rural Business-Cooperative Service See Rural Housing Service See Rural Utilities Service Antitrust Antitrust Division NOTICES Competitive impact statements and proposed consent judgments:

Connors Bros. Income Fund and Bumble Bee Seafoods, LLC, 64969-64977 04-24902 Army Army Department See Engineers Corps NOTICES Meetings: Armed Forces Epidemiological Board, 64918 04-24905 Western Hemisphere Institute for Security Cooperation Board of Visitors, 64918-64919 04-24906 Arts Arts and Humanities, National Foundation See National Foundation on the Arts and the Humanities Centers Centers for Disease Control and Prevention NOTICES Agency information collection activities; proposals, submissions, and approvals, 64955-64957 04-24892 04-24893 Children Children and Families Administration PROPOSED RULES Child care and development fund;

State match provisions, 64881-64884 04-24944 Coast Guard Coast Guard RULES Drawbridge operations: Massachusetts, 64860 04-24970 New York, 64860 04-24971 PROPOSED RULES Drawbridge operations: Iowa, 64875-64877 04-24972 Commerce Commerce Department See International Trade Administration See National Institute of Standards and Technology See National Oceanic and Atmospheric Administration CITA Committee for the Implementation of Textile Agreements NOTICES Cotton, wool, and man-made fabrics:

China, 64911-64912 E4-3085 Cotton, wool, and man-made textiles: China, 64912-64916 E4-3082 E4-3086 India, 64916-64917 E4-3087 Malaysia, 64917 E4-3088 Commodity Commodity Futures Trading Commission PROPOSED RULES Commodity Exchange Act: Futures commission merchants and introducing brokers; risk disclosure statement distribution, 64873-64875 04-24949 NOTICES Agency information collection activities; proposals, submissions, and approvals, 64917-64918 04-24950 Defense Defense Department See Army Department See Engineers Corps Education Education Department NOTICES Grants and cooperative agreements; availability, etc.:

Advanced Placement Incentive Program, 65033-65038 04-24896 Advanced Placement Test Fee Program, 65027-65031 04-24895 Employment Employment and Training Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 64977-64978 E4-3078 Energy Energy Department See Federal Energy Regulatory Commission NOTICES Trespassing on Department property: Oak Ridge Reservation, TN; security boundary revised, 64920-64924 04-24939 Engineers Engineers Corps NOTICES Environmental statements; availability, etc.:

Nantucket Sound and Yarmouth, MA; Cape Wind Energy Project, 64919-64920 04-24907 Environmental statements; notice of intent: South Bay Salt Ponds Restoration Project and South San Francisco Bay Shoreline Study, CA, 64965-64968 04-24885 EPA Environmental Protection Agency RULES Air quality implementation plans; approval and promulgation; various States; air quality planning purposes; designation of areas: West Virginia, 64860-64861 04-24912 Hazardous waste program authorizations:

Maine, 64861-64865 04-24920 PROPOSED RULES Hazardous waste program authorizations: Maine, 64880 04-24921 NOTICES Air pollution control: State operating permits programs— New York, 64924-64925 04-24923 Confidential business information and data transfer, 64925-64926 04-24925 Meetings: Lead in drinking water in schools and child care facilities; workshop, 64926 04-24922 Reports and guidance documents; availability, etc.: Air Quality Criteria for Lead; comment request, 64926-64928 04-24924 Executive Executive Office of the President See Presidential Documents See Trade Representative, Office of United States Farm Farm Service Agency RULES Special programs:

Farm Security and Rural Investment Act of 2002; implementation— Business and industry loans, 64829-64832 04-24886 FAA Federal Aviation Administration RULES Airworthiness directives: Airbus, 64836-64839, 64854-64856 04-24625 04-24628 Boeing, 64835-64836, 64839-64842, 64852-64853 04-24624 04-24627 Bombardier, 64856-64858 04-24629 McDonnell Douglas, 64846-64852 04-24620 04-24623 Pilatus Aircraft Ltd., 64832-64834 04-24717 Raytheon, 64842-64846, 64858-64860 04-24630 04-24718 PROPOSED RULES Airworthiness directives:

Airbus, 64871-64873 04-24938 Bombardier, 64869-64871 04-24937 FCC Federal Communications Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 64928-64932 04-24958 04-24964 Meetings; Sunshine Act, 64932-64933 04-25056 Federal Energy Federal Energy Regulatory Commission NOTICES Complaints filed: Golden Spread Electric Cooperative, Inc., et al., 64924 E4-3077 Federal Reserve Federal Reserve System NOTICES Federal Reserve Bank services:

Priced services and electronic connections; fee schedules and private sector adjustment factor, 64933-64954 04-24967 Federal Retirement Federal Retirement Thrift Investment Board NOTICES Meetings; Sunshine Act, 64954 04-25139 Financial Financial Management Service See Fiscal Service Fiscal Fiscal Service NOTICES Treasury book-entry securities held on National Book-Entry System, transfer; fee schedule, 65019-65020 04-24968 Fish Fish and Wildlife Service PROPOSED RULES Endangered and threatened species:

Findings on petitions, etc.— Desert cymopterus, 64884-64889 04-24700 White-tailed prairie dog, 64889-64901 04-24878 NOTICES Environmental statements; notice of intent: South Bay Salt Ponds Restoration Project and South San Francisco Bay Shoreline Study, CA, 64965-64968 04-24885 Food Food and Drug Administration NOTICES Minor Use and Minor Species Animal Health Act; implementation, 64957 04-24880 Reports and guidance documents; availability, etc.: Dietary Supplement Health and Education Act of 1994; implementation— Dietary supplement strategy, 64957-64958 04-24870 FDA review staff and sponsors; human gene therapy investigational new drug applications, 64958-64959 04-24879 Public Health Security and Bioterrorism Preparedness and Response Act of 2002; implementation— Food facilities registration; revised compliance policy guide, 64961-64962 04-24873 Prior notice of imported food; compliance policy guide, 64959-64961 04-24872 Substantiation for dietary supplement claims made under section 403(r)(6) of the Federal Food, Drug, and Cosmetic Act; industry guidance, 64962-64964 04-24871 Food Food Safety and Inspection Service NOTICES Meetings:

Meat and Poultry Inspection National Advisory Committee, 64902-64903 04-24882 Health Health and Human Services Department See Centers for Disease Control and Prevention See Children and Families Administration See Food and Drug Administration NOTICES Meetings: Bioethics, President's Council, 64954-64955 04-24945 Historic Historic Preservation, Advisory Council NOTICES Meetings, 64902 04-24946 Homeland Homeland Security Department See Coast Guard NOTICES United States Visitor and Immigrant Status Indicator Technology Program (US-VISIT):

Biometric data collection from additional travelers; expansion to 50 most highly trafficked land border ports of entry, 64964-64965 04-24966 Housing Housing and Urban Development Department RULES Housing programs: Data Universal Numbering System; identifier use requirement, 65023-65025 04-24884 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau IRS Internal Revenue Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 04-24875 65020-65022 04-24877 International International Trade Administration NOTICES Antidumping:

Helical spring lock washers from— China, 64903-64906 04-24952 Export trade certificates of review, 64906-64907 04-24881 Justice Justice Department See Antitrust Division Labor Labor Department See Employment and Training Administration See Mine Safety and Health Administration Land Land Management Bureau NOTICES Environmental statements; availability, etc.: Colorado Canyons National Conservation Area, CO; resource management plan, 64968 04-24421 Meetings: Resource Advisory Councils— Western Montana, 64968-64969 04-24891 Millennium Millennium Challenge Corporation NOTICES Meetings;

Sunshine Act, 64980 04-25060 Mine Mine Safety and Health Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 64978-64980 04-24899 04-24900 National Foundation National Foundation on the Arts and the Humanities NOTICES Agency information collection activities; proposals, submissions, and approvals, 64980-64981 04-24894 Meetings: Arts Advisory Panel, 64981-64982 04-24908 National Institute National Institute of Standards and Technology NOTICES Meetings:

Advanced Technology Program Advisory Committee, 64907 04-24942 Neutron Research Center; participating research teams; intent to form, 64907-64908 04-24941 NOAA National Oceanic and Atmospheric Administration NOTICES Meetings: National Sea Grant Review Panel, 64908 04-24909 South Atlantic Fishery Management Council, 64908-64909 04-24957 Permits: Exempted fishing, 64909 04-24955 Marine mammals, 64909-64910 04-24954 04-24956 Nuclear Nuclear Regulatory Commission NOTICES Environmental statements; availability, etc.:

Louisiana Energy Services, 64983 04-24889 Meetings; Sunshine Act, 64983-64984 04-25024 Operating licenses, amendments; no significant hazards considerations; biweekly notices, 64984-64996 04-24804 Reports and guidance documents; availability, etc.: Fuel cycle facilities; interim staff guidance, 64996-64998 04-24890 *Applications, hearings, determinations, etc.:* Amergen Energy Co., LLC, 64982-64983 04-24888 Office of U.S. Trade Office of United States Trade Representative See Trade Representative, Office of United States Postal Postal Rate Commission NOTICES Meetings:

PC-based rollforward model software; briefing and demonstration, 64998 04-24943 Postal Postal Service PROPOSED RULES Domestic Mail Manual: Address sequencing services, 64877-64880 04-24887 Presidential Presidential Documents PROCLAMATIONS *Special observances:* National Adoption Month (Proc. 7838), 65039-65041 04-25163 National Alzheimer's Disease Awareness Month (Proc. 7839), 65043-65044 04-25164 National American Indian Heritage Month (Proc. 7840), 65045-65046 04-25165 National Diabetes Month (Proc. 7841), 65047-65048 04-25166 National Family Caregivers Month (Proc. 7842), 65049 04-25167 National Hospice Month (Proc. 7843), 65051-65052 04-25168 Public Public Debt Bureau See Fiscal Service Rural Rural Business-Cooperative Service RULES Special programs:

Farm Security and Rural Investment Act of 2002; implementation— Business and industry loans, 64829-64832 04-24886 Rural Rural Housing Service RULES Special programs: Farm Security and Rural Investment Act of 2002; implementation— Business and industry loans, 64829-64832 04-24886 RUS Rural Utilities Service RULES Special programs: Farm Security and Rural Investment Act of 2002; implementation— Business and industry loans, 64829-64832 04-24886 SEC Securities and Exchange Commission NOTICES Self-regulatory organizations; proposed rule changes:

Boston Stock Exchange, Inc., 64998-65000 E4-3076 Chicago Stock Exchange, Inc., 65000-65003 E4-3075 E4-3081 National Association of Securities Dealers, Inc., 65003-65006 E4-3074 E4-3079 New York Stock Exchange, Inc., 65006-65011 E4-3080 State State Department NOTICES Reports and guidance documents; availability, etc.: Registration for Diversity Immigrant Visa Program; instructions, 65012-65018 04-24940 Textile Textile Agreements Implementation Committee See Committee for the Implementation of Textile Agreements Trade Trade Representative, Office of United States NOTICES U.S.-European communities; transatlantic economic relationship enhancement; public dialogue sessions Transportation Transportation Department See Federal Aviation Administration RULES Workplace drug and alcohol testing programs:

Adulterated, substituted, and diluted specimen results; instructions to laboratories and medical review officers, 64865-64868 04-25025 NOTICES Privacy Act: Systems of records, 65018-65019 04-24969 Treasury Treasury Department See Fiscal Service See Internal Revenue Service Separate Parts In This Issue Part II Housing and Urban Development Department, 65023-65025 04-24884 Part III Education Department, 65027-65031 04-24895 Part IV Education Department, 65033-65038 04-24896 Part V Executive Office of the President, Presidential Documents, 65039-65041, 65043-65049, 65051-65052 04-25163 04-25168 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.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 69 216 Tuesday, November 9, 2004 Rules and Regulations DEPARTMENT OF AGRICULTURE Rural Housing Service Rural Business-Cooperative Service Rural Utilities Service Farm Service Agency 7 CFR Part 4279 RIN 0570-AA39 Business and Industry Loans;

Revisions to Implement 2002 Farm Bill Provisions AGENCY: Rural Business-Cooperative Service, USDA. ACTION: Interim final rule with request for comments. SUMMARY: The Rural Business-Cooperative Service

(RBS)revises its regulations to incorporate provisions outlined in Sections 6013, 6017, and 6019 of the Farm Security and Rural Investment Act of 2002 (Pub. L. 104-424) (2002 Farm Bill). This action is taken to comply with the amendments to sections 310(B) and 333A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932 and 1983a). The intended effect of this action is to expand eligibility for the Business and Industry Guaranteed Loan Program, provide for a simplified application form for loans of up to $600,000, and allow the Agency to require specialized appraisals on collateral. DATES: The effective date of this interim final rule is December 9, 2004. Written or e-mail comments must be received on or before December 9, 2004, to be assured of consideration. ADDRESSES: You may submit commments to this rule by any of the following methods: • Agency Web Site: *http://rdinit.usda.gov/regs/.* Follow instructions for submitting comments on the Web Site. • E-mail: *comments@usda.gov* . Include the RIN No. 0570-AA39 in the subject line of the message. • Federal eRulemaking Portal: *http://www.regulations.gov* . Follow the instructions for submitting comments. • Mail: Submit written comments via the U.S. Postal Service to the Branch Chief, Regulations and Paperwork Management Branch, U.S. Department of Agriculture, STOP 0742, 1400 Independence Avenue, SW., Washington, DC 20250-0742. • Hand Deliver/Courier: Submit written comments via Federal Express Mail or other courier service requiring a street address to the Branch Chief, Regulations and Paperwork Management Branch, U.S. Department of Agriculture, 300 7th Street, SW., 7th Floor, Washington, DC 20024. All written comments will be available for public inspection during regular work hours at the 300 7th Street, SW., 7th Floor address listed above. FOR FURTHER INFORMATION CONTACT: Brenda Griffin, Loan Specialist, Business and Industry Division, Rural Business-Cooperative Service, U.S. Department of Agriculture, STOP 3224, 1400 Independence Ave. SW., Washington, DC 20250-3224. Telephone:

(202)720-6802. The TDD number is

(800)877-8339 or

(202)708-9300. SUPPLEMENTARY INFORMATION: Classification This rule has been determined to be significant and was reviewed by the Office of Management and Budget

(OMB)under Executive Order 12866. Programs Affected The Catalog of Federal Domestic Assistance number for the program impacted by this action is 10.768, Business and Industry Loans. Intergovernmental Review The Business and Industry loan programs are subject to the provisions of Executive Order 12372, which require intergovernmental consultation with state and local officials. RBS will conduct intergovernmental consultation in the manner delineated in RD Instruction 1940-J, “Intergovernmental Review of Department of Agriculture Programs and Activities” in 7 CFR part 3015, subpart V. Paperwork Reduction Act The information collection requirements contained in this regulation have been approved by OMB under the provisions of 44 U.S.C. chapter 35 and have been assigned OMB control numbers 0570-0014 and 0570-0017, in accordance with the Paperwork Reduction Act

(PRA)of 1995. Regulatory Flexibility Act In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-612), the undersigned has determined and certified by signature of this document that this rule will not have a significant economic impact on a substantial number of small entities. Some provisions published as a part of this rule are, in fact, a benefit to small entities. Eligibility for the cooperative stock purchase program, a program that provides loan guarantees for the purchase of stock in a cooperative by an individual farmer or rancher, has been expanded to include more entities. Additionally, provisions allow the Agency to accept financial statements from farmers and ranchers that are generally accepted by commercial agricultural lenders. Since this rule has no significant economic impact on a substantial number of small entities, a regulatory flexibility analysis was not performed. Civil Justice Reform This interim rule has been reviewed under Executive Order 12988, Civil Justice Reform. In accordance with this 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, and

(3)administrative proceedings in accordance with the regulations of the Agency at 7 CFR part 11 must be exhausted before bringing litigation challenging action taken under this rule unless those regulations specifically allow bringing suit at an earlier time. Environmental Impact Statement This document has been reviewed in accordance with 7 CFR part 1940, subpart G, “Environmental Program.” RBS has determined that this action does not constitute a major Federal action significantly affecting the quality of the 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. 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, RBS 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 UMRA generally requires RBS 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, this rule is not subject to the requirements of sections 202 and 205 of the UMRA. Executive Order 13132 It has been determined under Executive Order 13132, Federalism, that this rule does not have sufficient federalism implications to warrant the preparation of a Federalism Assessment. The provisions contained in this rule will not have a substantial direct effect on States or their political subdivisions or on the distribution of power and responsibilities among the various levels of government. Background The 2002 Farm Bill contains provisions to be incorporated into existing Business and Industry program regulations. Changes include specifically adding renewable energy systems to eligible loan purposes, allowing the Agency to require specialized appraisals, and using a simplified application for loans of up to $600,000. The cooperative stock purchase program has also been expanded to allow for guaranteed loans to purchase stock in existing cooperatives, to allow for cooperatives whose members receive cooperative stock purchase loans to contract for services to process agricultural commodities or otherwise process value-added agricultural products during its first 5 years, and to allow the Agency to accept financial statements from farmers and ranchers that are generally accepted by commercial agricultural lenders. The 2002 Farm Bill also contains provisions (under certain conditions) that allow cooperative organizations to apply for guaranteed loans for the financing of facilities in non-rural areas, for the refinancing of existing B&I loans, and in amounts up to $40 million. These revisions are being published as an interim final rule because the changes being made are mandated by sections 6013, 6017, and 6019 of the 2002 Farm Bill and provide limited administrative discretion. This interim final rule will be effective 30 days after publication, and a final rule will be published at a later date addressing any comments received. Section 6020 of the 2002 Farm Bill created a new definition of “rural” and “rural area” for the B&I Guaranteed Loan Program. Part of that new definition precludes loans being made in “* * * a city or town that has a population of greater than 50,000 inhabitants. * * *” Many States have communities that while not legally designated as “towns” under State law are the functional equivalent ( *e.g.* , villages or boroughs, or for which there is State law recognition as an incorporated general purpose public entity). RBS believes it is consistent with the intent of the 2002 Farm Bill to include these functionally equivalent localities in the meaning of “town” and proposes to do so in the future. RBS requests public comment on this position. List of Subjects in 7 CFR Part 4279 Loan programs—Business and industry, Loan Programs—Rural development assistance, Rural areas. Accordingly, chapter XLII, title 7, Code of Federal Regulations, is amended as follows: CHAPTER XLII—[AMENDED] PART 4279—GUARANTEED LOANMAKING 1. The authority citation for part 4279 continues to read as follows: Authority: 7 U.S.C. 1989. Subpart B—Business and Industry Loans 2. Section 4279.108 is amended by revising paragraphs

(a)introductory text, (a)(4), and (c); redesignating paragraph

(d)as paragraph (e); and by adding a new paragraph

(d)to read as follows: § 4279.108 Eligible borrowers.

(a)*Type of entity* . A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or other Federally recognized tribal group; a public body; or an individual. A cooperative organization is a cooperative or an entity, not chartered as a cooperative, that operates as a cooperative in that it is owned and operated for the benefit of its members, including the manner in which it distributes its dividends and assets. A borrower must be engaged in or proposing to engage in a business. Business may include manufacturing, wholesaling, retailing, providing services, or other activities that will:

(4)Reduce reliance on nonrenewable energy resources by encouraging the development and construction of solar energy systems and other renewable energy systems (including wind energy systems, geothermal energy systems, and anaerobic digesters for the purpose of energy generation).

(c)*Rural area* . The business financed with a B&I Guaranteed Loan must be located in a rural area, except for cooperative organizations financed in accordance with paragraph (d)(3) of this section. Loans to borrowers with facilities located in both rural and non-rural areas will be limited to the amount necessary to finance the facility in the eligible rural area, except for cooperative organizations financed in accordance with paragraph (d)(3) of this section. Rural areas are any areas other than:

(1)A city or town that has a population of greater than 50,000 inhabitants; and

(2)The urbanized area contiguous and adjacent to such a city or town, as defined by the U.S. Bureau of the Census using the latest decennial census of the United States.

(d)*Loans to cooperative organizations* .

(1)B&I loans to eligible cooperative organizations may be made in principal amounts up to $40 million if the project is located in a rural area, the cooperative facility being financed provides for the value-added processing of agricultural commodities, and the total amount of loans exceeding $25 million does not exceed 10 percent of the funds available for the fiscal year.

(2)Cooperative organizations that are headquartered in a non-rural area may be eligible for a B&I loan if the loan is used for a project or venture that is located in a rural area.

(3)B&I loans to eligible cooperative organizations may also be made in non-rural areas provided:

(i)The primary purpose of the loan is for a facility to provide value-added processing for agricultural producers that are located within 80 miles of the facility;

(ii)The applicant satisfactorily demonstrates that the primary benefit of the loan will be to provide employment for rural residents;

(iii)The principal amount of the loan does not exceed $25 million; and

(iv)The total amount of loans guaranteed under this section does not exceed 10 percent of the funds available for the fiscal year.

(4)An eligible cooperative organization may refinance an existing B&I loan provided that the existing loan is current and performing, the existing loan is not and has not been in payment default (more than 30 days late) or the collateral of which has not been converted, and there is adequate security or full collateral for the new B&I loan. 3. Section 4279.113 is amended by redesignating paragraphs

(j)through

(aa)to be paragraphs

(k)through (bb); by revising paragraphs

(i)and newly redesignated paragraph (r); and by adding a new paragraph

(j)to read as follows: § 4279.113 Eligible loan purposes.

(i)Purchase of membership, stocks, bonds, or debentures necessary to obtain a loan from Farm Credit System institutions and other lenders provided that the purchase is required for all of their borrowers.

(j)Purchase of cooperative stock by individual farmers or ranchers in a farmer or rancher cooperative established for the purpose of processing an agricultural commodity.

(1)The cooperative may contract for services to process agricultural commodities or otherwise process value-added agricultural products during the 5-year period beginning on the operation startup date of the cooperative in order to provide adequate time for the planning and construction of the processing facility of the cooperative.

(2)Notwithstanding §§ 4279.131(d) and 4279.137, the individual farmer or rancher may provide financial information in the manner that is generally required by commercial agricultural lenders in order to obtain a loan.

(r)To refinance outstanding debt when it is determined that the project is viable and refinancing is necessary to improve cash flow and create new or save existing jobs. Except as provided for in § 4279.108(d)(4) of this subpart, existing lender debt may be included provided that, at the time of application, the loan has been current for at least the past 12 months (unless such status is achieved by the lender forgiving the borrower's debt), the lender is providing better rates or terms, and the refinancing is a secondary part (less than 50 percent) of the overall loan. 4. Section 4279.119(a) is revised to read as follows: § 4279.119 Loan guarantee limits.

(a)*Loan amount* . The total amount of Agency loans to one borrower, including: The guaranteed and unguaranteed portions; the outstanding principal and interest balance of any existing Agency guaranteed loans; and new loan request, must not exceed $10 million, except as outlined in paragraphs (a)(1) and

(2)of this section.

(1)The Administrator may, at the Administrator's discretion, grant an exception to the $10 million limit for loans of $25 million or less under the following circumstances:

(i)The project to be financed is a high-priority project. Priority will be determined in accordance with the criteria contained in § 4279.155 of this subpart;

(ii)The lender must document to the satisfaction of the Agency that the loan will not be made and the project will not be completed if the guarantee is not approved;

(iii)The percentage of guarantee will not exceed 60 percent. No exception to this requirement will be approved under paragraph

(b)of this section for loans exceeding $10 million; and

(iv)Any request for a guaranteed loan exceeding the $10 million limit must be submitted to the Agency in the form of a preapplication. The preapplication must be submitted to the National Office for review and concurrence before encouraging a full application.

(2)The Secretary, whose authority may not be redelegated, may approve guaranteed loans in excess of $25 million, at the Secretary's discretion, for rural cooperative organizations that process value-added agricultural commodities in accordance with § 4279.108(d)(1) of this subpart. 5. Section 4279.144 is revised to read as follows: § 4279.144 Appraisals. Lenders will be responsible for ensuring that appraisal values adequately reflect the actual value of the collateral. All real property appraisals associated with Agency guaranteed loanmaking and servicing transactions will meet the requirements contained in the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989 and the appropriate guidelines contained in Standards 1 and 2 of the Uniform Standards of Professional Appraisal Practices (USPAP). In accordance with USPAP, the Agency will require documentation that the appraiser has the necessary experience and competency to appraise the property in question. All appraisals will include consideration of the potential effects from a release of hazardous substances or petroleum products or other environmental hazards on the market value of the collateral. For additional guidance and information concerning the completion of real property appraisals, refer to “Standard Practices for Environmental Site Assessments: Transaction Screen Questionnaire” and “Phase I Environmental Site Assessment,” both published by the American Society of Testing and Materials. Chattels will be evaluated in accordance with normal banking practices and generally accepted methods of determining value. 6. Section 4279.161 is amended by adding a sentence at the end of the introductory text and by adding paragraph

(c)to read as follows: § 4279.161 Filing preapplications and applications. * * * Guaranteed loans of $600,000 and less may be processed under paragraph

(b)or

(c)of this section, but guaranteed loans exceeding $600,000 must be processed under paragraph

(b)of this section.

(c)*Applications of $600,000 and less* . Guaranteed loan applications may be processed under this paragraph if the request does not exceed $400,000. Beginning in fiscal year 2004, this limit may be increased on a case-by-case basis to $600,000 provided that the Agency determines that there is not a significant increased risk of a default on the loan. Applications may be resubmitted under paragraph

(b)of this section when the application under this paragraph contains insufficient information for the Agency to guarantee the loan. Applications submitted under this paragraph must use the Agency's short application form and include the information contained in paragraphs (b)(3), (5), (7), (8), and

(11)of this section. The lender must have the documentation identified in paragraph

(b)of this section, with the exception of paragraphs (b)(1), (2), (14), and (15), available in its file for review. Dated: November 2, 2004. Gilbert Gonzalez, Acting Under Secretary, Rural Development. [FR Doc. 04-24886 Filed 11-8-04; 8:45 am]

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