83_FR_30958 83 FR 30831 - Guaranteed Loanmaking and Servicing Regulations; Corrections

83 FR 30831 - Guaranteed Loanmaking and Servicing Regulations; Corrections

DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Rural Utilities Service

Federal Register Volume 83, Issue 127 (July 2, 2018)

Page Range30831-30833
FR Document2018-14170

On June 3, 2016, the Rural Business-Cooperative Service promulgated changes to its Guaranteed Loanmaking and Servicing Regulations. Following final implementation of this final rule, RBS found that conforming amendments for adoption for the Rural Energy for America Program (REAP) had not been included. This technical correction makes amendments to allow REAP to continue to use procedures and forms from the revised Guaranteed program.

Federal Register, Volume 83 Issue 127 (Monday, July 2, 2018) 
[Federal Register Volume 83, Number 127 (Monday, July 2, 2018)]
[Rules and Regulations]
[Pages 30831-30833]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14170]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 83, No. 127 / Monday, July 2, 2018 / Rules 
and Regulations

[[Page 30831]]



DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

Rural Utilities Service

7 CFR Part 4280

RIN 0570-AA85


Guaranteed Loanmaking and Servicing Regulations; Corrections

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

ACTION: Correcting amendments.

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

SUMMARY: On June 3, 2016, the Rural Business-Cooperative Service 
promulgated changes to its Guaranteed Loanmaking and Servicing 
Regulations. Following final implementation of this final rule, RBS 
found that conforming amendments for adoption for the Rural Energy for 
America Program (REAP) had not been included. This technical correction 
makes amendments to allow REAP to continue to use procedures and forms 
from the revised Guaranteed program.

DATES: Effective July 2, 2018.

FOR FURTHER INFORMATION CONTACT: Mark Brodziski, Rural Development, 
Energy Programs, U.S. Department of Agriculture, 1400 Independence Ave. 
SW, Stop 3225, Washington, DC 20250-3201; email: 
[email protected]; telephone number: (202) 720-0410.

SUPPLEMENTARY INFORMATION: 

Need for Corrections

    The Agency published a final rule on June 3, 2016, (81 FR 35984) 
for the purpose of improving program delivery, clarifying the 
regulations to make them easier to understand, and reducing 
delinquencies. The Agency discovered that conforming amendments had not 
been included for 7 CFR part 4280 to continue to allow the Rural Energy 
for America Program to use procedures and forms already codified for 
the Guaranteed program and correctly reference revised 7 CFR part 4279. 
This notice makes technical corrections to include the actual language 
in 7 CFR part 4280 referencing language from 7 CFR part 4279 prior to 
amendment of such regulation in 2017, update references included in 7 
CFR part 4280 to updated sections of 7 CFR part 4279, and update the 
title of Form RD 4280-2 from Grant Agreement to Financial Assistance 
Agreement, all as intended at the time of revision of 7 CFR part 4279. 
In addition, information on lender eligibility and credit quality is 
updated to bring them into conformance with the Guaranteed program and 
current implementation.

List of Subjects in 7 CFR Part 4280

    Business and industry, Energy, Grant programs--Business, Loan 
programs--Business and industry, Rural areas.

    Accordingly, 7 CFR chapter XLII is amended by making the following 
correcting amendments:

PART 4280--LOANS AND GRANTS

0
1. The authority citation for part 4280 continues to read as follows:

    Authority:  5 U.S.C. 301; 7 U.S.C. 940c; and 7 U.S.C. 1932(c).

Subpart B--Rural Energy for America Program


Sec. Sec.  4280.103, 4280.110, 4280.112, 4280.113, 4280.122, 4280.123, 
and 4280.196   [Amended]

0
2. In Sec. Sec.  4280.103, 4280.110, 4280.112, 4280.113, 4280.122, 
4280.123, and 4280.196, remove the words ``Grant Agreement'' and add in 
their place the words ``Financial Assistance Agreement'' wherever they 
appear in the following places:
0
a. Sec.  4280.103;
0
b. Sec.  4280.110(i) introductory text, (i)(1), and (i)(2);
0
c. Sec.  4280.112(b)(2);
0
d. Sec.  4280.113(a)(4)(ii)(A) and (B);
0
e. Sec.  4280.122(d), (e), (f), (g) and (h);
0
f. Sec.  4280.123 introductory text and (d);
0
g. Sec.  4280.196 introductory text.


0
3. Amend Sec.  4280.103 by:
0
a. Placing the newly designated definition Financial Assistance 
Agreement (Form RD 4280-2, Rural Business Cooperative Service Financial 
Assistance Agreement, or successor form) in alphabetical order.
0
b. Revising the definition of State to read as follows:


Sec.  4280.103   Definitions.

* * * * *
    State. Any of the 50 States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, 
Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, 
the Republic of Palau, the Federated States of Micronesia, and the 
Republic of the Marshall Islands.
* * * * *

0
4. Revise Sec.  4280.125 to read as follows:


Sec.  4280.125   Compliance with Sec. Sec.  4279.29 through 4279.99 of 
this chapter.

    (a) General. Except for Sec.  4279.29 of this chapter, all loans 
guaranteed under this subpart must comply with the provisions found in 
Sec. Sec.  4279.30 through 4279.99 of this chapter.
    (b) Instead of Sec.  4279.29 of this chapter, the Eligible lenders 
provisions of this subpart are:
    (1) Traditional lenders. An eligible lender is any Federal or State 
chartered bank, Farm Credit Bank, other Farm Credit System institution 
with direct lending authority, Bank for Cooperatives, Savings and Loan 
Association, or mortgage company that is part of a bank-holding 
company. These entities must be subject to credit examination and 
supervision by either an agency of the United States or a State. 
Eligible lenders may also include credit unions provided, they are 
subject to credit examination and supervision by either the National 
Credit Union Administration or a State agency, and insurance companies 
provided they are regulated by a State or National insurance regulatory 
agency. Eligible lenders include the National Rural Utilities 
Cooperative Finance Corporation.
    (2) Other lenders. Rural Utilities Service borrowers and other 
lenders not meeting the criteria of paragraph (a) of this section may 
be considered by the Agency for eligibility to become a guaranteed 
lender provided, the Agency determines that they have the legal 
authority to operate a lending program and sufficient lending expertise 
and financial strength to operate a successful lending program.
    (i) Such a lender must:

[[Page 30832]]

    (A) Have a record of successfully making at least three commercial 
loans annually for at least the most recent 3 years, with delinquent 
loans not exceeding 10 percent of loans outstanding and historic losses 
not exceeding 10 percent of dollars loaned, or when the proposed lender 
can demonstrate that it has personnel with equivalent previous 
experience and where the commercial loan portfolio was of a similar 
quantity and quality; and
    (B) Have tangible balance sheet equity of at least seven percent of 
tangible assets and sufficient funds available to disburse the 
guaranteed loans it proposes to approve within the first 6 months of 
being approved as a guaranteed lender.
    (ii) A lender not eligible under paragraph (a) of this section that 
wishes consideration to become a guaranteed lender must submit a 
request in writing to the State Office for the State where the lender's 
lending and servicing activity takes place. The lender's written 
request must include:
    (A) Evidence showing that the lender has the necessary capital and 
resources to successfully meet its responsibilities.
    (B) Copy of any license, charter, or other evidence of authority to 
engage in the proposed loanmaking and servicing activities. If 
licensing by the State is not required, an attorney's opinion to this 
effect must be submitted.
    (C) Information on lending experience, including length of time in 
the lending business; range and volume of lending and servicing 
activity; status of loan portfolio including delinquency rate, loss 
rate as a percentage of loan amounts, and other measures of success; 
experience of management and loan officers; audited financial 
statements not more than 1 year old; sources of funds for the proposed 
loans; office location and proposed lending area; and proposed rates 
and fees, including loan origination, loan preparation, and servicing 
fees. Such fees must not be greater than those charged by similarly 
located commercial lenders in the ordinary course of business.
    (D) An estimate of the number and size of guaranteed loan 
applications the lender will develop.
    (3) Expertise. Loan guarantees will only be approved for lenders 
with adequate experience and expertise to make, secure, service, and 
collect REAP loans.


0
5. Revise Sec.  4280.126 to read as follows:


Sec.  4280.126   Guarantee/annual renewal fee.

    Except for the conditions for receiving reduced guarantee fee and 
unless otherwise specified in a Federal Register notice, the provisions 
specified in Sec.  4279.120 of this chapter apply to loans guaranteed 
under this subpart.

0
6. Amend Sec.  4280.129 by revising paragraph (e)(3) to read as 
follows:


Sec.  4280.129  Guaranteed loan funding.

* * * * *
    (e) * * *
    (3) Routine lender fees, as described in Sec.  4279.120 (c) of this 
chapter.
* * * * *


0
7. Amend Sec.  4280.130 by revising paragraph (b) to read as follows:


Sec.  4280.130   Loan processing.

* * * * *
    (b) The provisions found in Sec. Sec.  4279.125(d), 4279.150, 
4279.166, 4279.161, and 4279.167(b) of this chapter do not apply to 
loans guaranteed under this subpart.


0
8. Revise Sec.  4280.131 to read as follows:


Sec.  4280.131   Credit quality.

    The lender is primarily responsible for determining credit quality 
and must address all of the elements of credit quality in a written 
credit analysis including adequacy of equity, cash flow, collateral, 
history, management, and the current status of the industry for which 
credit is to be extended.
    (a) Cash flow. All efforts will be made to structure or restructure 
debt so that the business has adequate debt coverage and the ability to 
accommodate expansion.
    (b) Collateral. (1) Collateral must have documented value 
sufficient to protect the interest of the lender and the Agency and, 
except as set forth in paragraph (b)(2) of this section, the discounted 
collateral value will be at least equal to the loan amount. Lenders 
will discount collateral consistent with sound loan-to-value policy.
    (2) Some businesses are predominantly cash-flow oriented, and where 
cash flow and profitability are strong, loan-to-value coverage may be 
discounted accordingly. A loan primarily based on cash flow must be 
supported by a successful and documented financial history.
    (c) Industry. Current status of the industry will be considered and 
businesses in areas of decline will be required to provide strong 
business plans which outline how they differ from the current trends. 
The regulatory environment surrounding the particular business or 
industry will be considered.
    (d) Equity. Borrowers must demonstrate evidence of a financial 
contribution in the project of not less than 25 percent of total 
Eligible Project Costs. Federal grant funds may be used as the 
financial contribution.
    (e) Lien priorities. The entire loan will be secured by the same 
security with equal lien priority for the guaranteed and unguaranteed 
portions of the loan. The unguaranteed portion of the loan will neither 
be paid first nor given any preference or priority over the guaranteed 
portion. A parity or junior position may be considered provided that 
discounted collateral values are adequate to secure the loan in 
accordance with paragraph (b) of this section after considering prior 
liens.
    (f) Management. A thorough review of key management personnel will 
be completed to ensure that the business has adequately trained and 
experienced managers.


0
9. Revise Sec.  4280.134 to read as follows:


Sec.  4280.134   Personal and corporate guarantees.

    Except for Passive Investors, all personal and corporate guarantees 
must be in accordance with Sec.  4279.132 of this chapter.

0
10. Amend Sec.  4280.137 by revising paragraphs (b)(2)(viii)(C) and 
(c)(1), and the first sentence of paragraph (c)(2), to read as follows:


Sec.  4280.137   Application and documentation.

* * * * *
    (b) * * *
    (2) * * *
    (viii) * * *
    (C) Pro forma financial statements. Provide pro forma balance sheet 
at start-up of the borrower's business operation that reflects the use 
of the loan proceeds or grant award; 2 additional years of financial 
statements, indicating the necessary start-up capital, operating 
capital, and short-term credit; and projected cash flow and income 
statements for 3 years supported by a list of assumptions showing the 
basis for the projections.
* * * * *
    (c) * * *
    (1) Application contents. If the application is for a loan with 
total project costs in the amount of $80,000 or less, the application 
must contain the information specified in Sec.  4280.119(b), except as 
specified in paragraph (c)(2) of this section (e.g., the grant 
application SF-424 forms under Sec.  4280.119(b) are not required to be 
submitted), and must present the information in the same order as shown 
in Sec.  4280.119(b). If the application is for less than $200,000, but 
more than $80,000, the application must

[[Page 30833]]

contain the information specified in Sec.  4280.118(b), except as 
specified in paragraph (c)(2) of this section (e.g., the grant 
application SF-424 forms under Sec.  4280.117(a) are not required to be 
submitted), and must present the information in the same order as shown 
in Sec.  4280.118(b). If the application is for $200,000 and greater, 
the application must contain the information specified in Sec.  
4280.117, except as specified in paragraph (c)(2) of this section, 
(e.g., the grant application SF-424 forms under Sec.  4280.117(a) are 
not required to be submitted), and must present the information in the 
same order as shown in Sec.  4280.117.
    (2) Lender forms, certifications, and agreements. Each application 
submitted under paragraph (c) of this section must use Form RD 4279-1, 
``Application for Loan Guarantee,'' and the forms and certifications 
specified in paragraphs (b)(2)(ii), (iii) (if not previously 
submitted), (v), (viii), (ix), (x), and (xi) of this section. * * *


0
11. Amend Sec.  4280.142 by revising the first sentence of the 
introductory text to read as follows:


Sec.  4280.142  Conditions precedent to issuance of loan note 
guarantee.

    The provisions of Sec.  4279.181 of this chapter apply except for 
Sec.  4279.181(a)(9)(v). * * *
* * * * *

    Dated: June 8, 2018.
Bette B. Brand,
Administrator, Rural Business-Cooperative Service.

    Dated: June 14, 2018.
Kenneth L. Johnson,
Administrator, Rural Utilities Service.
[FR Doc. 2018-14170 Filed 6-29-18; 8:45 am]
 BILLING CODE 3410-XY-P

30831 Rules and Regulations Federal Register Vol. 83, No. 127 Monday, July 2, 2018 This section of the FEDERAL REGISTER forms already codified for the ■ b. Revising the definition of State to contains regulatory documents having general Guaranteed program and correctly read as follows: applicability and legal effect, most of which reference revised 7 CFR part 4279. This are keyed to and codified in the Code of notice makes technical corrections to § 4280.103 Definitions. Federal Regulations, which is published under include the actual language in 7 CFR * * * * * 50 titles pursuant to 44 U.S.C. 1510. State. Any of the 50 States of the part 4280 referencing language from 7 The Code of Federal Regulations is sold by CFR part 4279 prior to amendment of United States, the District of Columbia, the Superintendent of Documents. such regulation in 2017, update the Commonwealth of Puerto Rico, the references included in 7 CFR part 4280 U.S. Virgin Islands, Guam, American to updated sections of 7 CFR part 4279, Samoa, the Commonwealth of the DEPARTMENT OF AGRICULTURE and update the title of Form RD 4280– Northern Mariana Islands, the Republic 2 from Grant Agreement to Financial of Palau, the Federated States of Rural Business-Cooperative Service Assistance Agreement, all as intended at Micronesia, and the Republic of the the time of revision of 7 CFR part 4279. Marshall Islands. Rural Utilities Service In addition, information on lender * * * * * eligibility and credit quality is updated ■ 4. Revise § 4280.125 to read as 7 CFR Part 4280 to bring them into conformance with the follows: RIN 0570–AA85 Guaranteed program and current implementation. § 4280.125 Compliance with §§ 4279.29 Guaranteed Loanmaking and Servicing through 4279.99 of this chapter. Regulations; Corrections List of Subjects in 7 CFR Part 4280 (a) General. Except for § 4279.29 of Business and industry, Energy, Grant this chapter, all loans guaranteed under AGENCY: Rural Business-Cooperative programs—Business, Loan programs— this subpart must comply with the Service and Rural Utilities Service; Business and industry, Rural areas. provisions found in §§ 4279.30 through USDA. Accordingly, 7 CFR chapter XLII is 4279.99 of this chapter. ACTION: Correcting amendments. amended by making the following (b) Instead of § 4279.29 of this SUMMARY: On June 3, 2016, the Rural correcting amendments: chapter, the Eligible lenders provisions Business-Cooperative Service of this subpart are: PART 4280—LOANS AND GRANTS (1) Traditional lenders. An eligible promulgated changes to its Guaranteed Loanmaking and Servicing Regulations. lender is any Federal or State chartered ■ 1. The authority citation for part 4280 Following final implementation of this bank, Farm Credit Bank, other Farm continues to read as follows: final rule, RBS found that conforming Credit System institution with direct Authority: 5 U.S.C. 301; 7 U.S.C. 940c; lending authority, Bank for amendments for adoption for the Rural and 7 U.S.C. 1932(c). Energy for America Program (REAP) had Cooperatives, Savings and Loan not been included. This technical Association, or mortgage company that Subpart B—Rural Energy for America correction makes amendments to allow is part of a bank-holding company. Program REAP to continue to use procedures and These entities must be subject to credit forms from the revised Guaranteed §§ 4280.103, 4280.110, 4280.112, 4280.113, examination and supervision by either program. 4280.122, 4280.123, and 4280.196 an agency of the United States or a [Amended] State. Eligible lenders may also include DATES: Effective July 2, 2018. credit unions provided, they are subject ■ 2. In §§ 4280.103, 4280.110, 4280.112, FOR FURTHER INFORMATION CONTACT: 4280.113, 4280.122, 4280.123, and to credit examination and supervision Mark Brodziski, Rural Development, 4280.196, remove the words ‘‘Grant by either the National Credit Union Energy Programs, U.S. Department of Agreement’’ and add in their place the Administration or a State agency, and Agriculture, 1400 Independence Ave. words ‘‘Financial Assistance insurance companies provided they are SW, Stop 3225, Washington, DC 20250– Agreement’’ wherever they appear in regulated by a State or National 3201; email: Mark.Brodziski@ the following places: insurance regulatory agency. Eligible wdc.usda.gov; telephone number: (202) ■ a. § 4280.103; lenders include the National Rural 720–0410. ■ b. § 4280.110(i) introductory text, Utilities Cooperative Finance SUPPLEMENTARY INFORMATION: (i)(1), and (i)(2); Corporation. ■ c. § 4280.112(b)(2); (2) Other lenders. Rural Utilities Need for Corrections ■ d. § 4280.113(a)(4)(ii)(A) and (B); Service borrowers and other lenders not The Agency published a final rule on ■ e. § 4280.122(d), (e), (f), (g) and (h); meeting the criteria of paragraph (a) of June 3, 2016, (81 FR 35984) for the ■ f. § 4280.123 introductory text and (d); this section may be considered by the purpose of improving program delivery, ■ g. § 4280.196 introductory text. Agency for eligibility to become a clarifying the regulations to make them guaranteed lender provided, the Agency daltland on DSKBBV9HB2PROD with RULES ■ 3. Amend § 4280.103 by: easier to understand, and reducing ■ a. Placing the newly designated determines that they have the legal delinquencies. The Agency discovered definition Financial Assistance authority to operate a lending program that conforming amendments had not Agreement (Form RD 4280–2, Rural and sufficient lending expertise and been included for 7 CFR part 4280 to Business Cooperative Service Financial financial strength to operate a successful continue to allow the Rural Energy for Assistance Agreement, or successor lending program. America Program to use procedures and form) in alphabetical order. (i) Such a lender must: VerDate Sep<11>2014 16:46 Jun 29, 2018 Jkt 244001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\02JYR1.SGM 02JYR1

30832 Federal Register / Vol. 83, No. 127 / Monday, July 2, 2018 / Rules and Regulations (A) Have a record of successfully otherwise specified in a Federal than 25 percent of total Eligible Project making at least three commercial loans Register notice, the provisions specified Costs. Federal grant funds may be used annually for at least the most recent 3 in § 4279.120 of this chapter apply to as the financial contribution. years, with delinquent loans not loans guaranteed under this subpart. (e) Lien priorities. The entire loan will exceeding 10 percent of loans ■ 6. Amend § 4280.129 by revising be secured by the same security with outstanding and historic losses not paragraph (e)(3) to read as follows: equal lien priority for the guaranteed exceeding 10 percent of dollars loaned, and unguaranteed portions of the loan. or when the proposed lender can § 4280.129 Guaranteed loan funding. The unguaranteed portion of the loan demonstrate that it has personnel with * * * * * will neither be paid first nor given any equivalent previous experience and (e) * * * preference or priority over the where the commercial loan portfolio (3) Routine lender fees, as described guaranteed portion. A parity or junior was of a similar quantity and quality; in § 4279.120 (c) of this chapter. position may be considered provided and * * * * * that discounted collateral values are (B) Have tangible balance sheet equity adequate to secure the loan in of at least seven percent of tangible ■ 7. Amend § 4280.130 by revising paragraph (b) to read as follows: accordance with paragraph (b) of this assets and sufficient funds available to section after considering prior liens. disburse the guaranteed loans it § 4280.130 Loan processing. (f) Management. A thorough review of proposes to approve within the first 6 key management personnel will be * * * * * months of being approved as a completed to ensure that the business (b) The provisions found in guaranteed lender. has adequately trained and experienced (ii) A lender not eligible under §§ 4279.125(d), 4279.150, 4279.166, 4279.161, and 4279.167(b) of this managers. paragraph (a) of this section that wishes consideration to become a guaranteed chapter do not apply to loans ■ 9. Revise § 4280.134 to read as lender must submit a request in writing guaranteed under this subpart. follows: to the State Office for the State where ■ 8. Revise § 4280.131 to read as § 4280.134 Personal and corporate the lender’s lending and servicing follows: guarantees. activity takes place. The lender’s written § 4280.131 Credit quality. Except for Passive Investors, all request must include: (A) Evidence showing that the lender The lender is primarily responsible personal and corporate guarantees must has the necessary capital and resources for determining credit quality and must be in accordance with § 4279.132 of this to successfully meet its responsibilities. address all of the elements of credit chapter. (B) Copy of any license, charter, or quality in a written credit analysis ■ 10. Amend § 4280.137 by revising other evidence of authority to engage in including adequacy of equity, cash flow, paragraphs (b)(2)(viii)(C) and (c)(1), and the proposed loanmaking and servicing collateral, history, management, and the the first sentence of paragraph (c)(2), to activities. If licensing by the State is not current status of the industry for which read as follows: required, an attorney’s opinion to this credit is to be extended. § 4280.137 Application and effect must be submitted. (a) Cash flow. All efforts will be made documentation. (C) Information on lending to structure or restructure debt so that experience, including length of time in the business has adequate debt coverage * * * * * the lending business; range and volume and the ability to accommodate (b) * * * of lending and servicing activity; status expansion. (2) * * * of loan portfolio including delinquency (b) Collateral. (1) Collateral must have (viii) * * * rate, loss rate as a percentage of loan documented value sufficient to protect (C) Pro forma financial statements. amounts, and other measures of success; the interest of the lender and the Provide pro forma balance sheet at start- experience of management and loan Agency and, except as set forth in up of the borrower’s business operation officers; audited financial statements paragraph (b)(2) of this section, the that reflects the use of the loan proceeds not more than 1 year old; sources of discounted collateral value will be at or grant award; 2 additional years of funds for the proposed loans; office least equal to the loan amount. Lenders financial statements, indicating the location and proposed lending area; and will discount collateral consistent with necessary start-up capital, operating proposed rates and fees, including loan sound loan-to-value policy. capital, and short-term credit; and origination, loan preparation, and (2) Some businesses are projected cash flow and income servicing fees. Such fees must not be predominantly cash-flow oriented, and statements for 3 years supported by a greater than those charged by similarly where cash flow and profitability are list of assumptions showing the basis for located commercial lenders in the strong, loan-to-value coverage may be the projections. ordinary course of business. discounted accordingly. A loan * * * * * (D) An estimate of the number and primarily based on cash flow must be (c) * * * size of guaranteed loan applications the supported by a successful and (1) Application contents. If the lender will develop. documented financial history. application is for a loan with total (3) Expertise. Loan guarantees will (c) Industry. Current status of the project costs in the amount of $80,000 only be approved for lenders with industry will be considered and or less, the application must contain the adequate experience and expertise to businesses in areas of decline will be information specified in § 4280.119(b), make, secure, service, and collect REAP required to provide strong business except as specified in paragraph (c)(2) of loans. this section (e.g., the grant application daltland on DSKBBV9HB2PROD with RULES plans which outline how they differ ■ 5. Revise § 4280.126 to read as from the current trends. The regulatory SF–424 forms under § 4280.119(b) are follows: environment surrounding the particular not required to be submitted), and must business or industry will be considered. present the information in the same § 4280.126 Guarantee/annual renewal fee. (d) Equity. Borrowers must order as shown in § 4280.119(b). If the Except for the conditions for receiving demonstrate evidence of a financial application is for less than $200,000, but reduced guarantee fee and unless contribution in the project of not less more than $80,000, the application must VerDate Sep<11>2014 16:46 Jun 29, 2018 Jkt 244001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\02JYR1.SGM 02JYR1

Federal Register / Vol. 83, No. 127 / Monday, July 2, 2018 / Rules and Regulations 30833 contain the information specified in (FCS) banks and associations. The final ‘‘paragraph (b)(3)’’ is corrected to read § 4280.118(b), except as specified in rule strengthens eligibility criteria for ‘‘paragraph (b)(4)’’. paragraph (c)(2) of this section (e.g., the investments that FCS banks purchase grant application SF–424 forms under and hold, and implements section 939A § 615.5143 [Corrected] § 4280.117(a) are not required to be of the Dodd-Frank Wall Street Reform ■ 7. On page 27503, in the second submitted), and must present the and Consumer Protection Act by column, in § 615.5143, in paragraph information in the same order as shown removing references to and (a)(2), the reference ‘‘§ 615.5140(b)(3)’’ is in § 4280.118(b). If the application is for requirements for credit ratings and corrected to read ‘‘§ 615.5140(b)(4)’’. $200,000 and greater, the application substituting other appropriate standards ■ 8. On page 27503, in the third column, must contain the information specified of creditworthiness. The final rule in § 615.5143, in paragraph (b)(3), the in § 4280.117, except as specified in revises FCA’s regulatory approach to reference ‘‘§ 615.5140(b)(3)’’ is corrected paragraph (c)(2) of this section, (e.g., the investments by FCS associations by to read ‘‘§ 615.5140(b)(4)’’. grant application SF–424 forms under limiting the type and amount of § 4280.117(a) are not required to be investments that an association may Dated: June 26, 2018. submitted), and must present the hold for risk management purposes. Dale L. Aultman, information in the same order as shown DATES: This correction shall become Secretary, Farm Credit Administration Board. in § 4280.117. effective on January 1, 2019. [FR Doc. 2018–14107 Filed 6–29–18; 8:45 am] (2) Lender forms, certifications, and BILLING CODE 6705–01–P FOR FURTHER INFORMATION CONTACT: agreements. Each application submitted under paragraph (c) of this section must David J. Lewandrowski, Senior Policy use Form RD 4279–1, ‘‘Application for Analyst, Office of Regulatory Policy, Loan Guarantee,’’ and the forms and (703) 883–4212, TTY (703) 883–4056, DEPARTMENT OF TRANSPORTATION certifications specified in paragraphs lewandrowskid@fca.gov; (b)(2)(ii), (iii) (if not previously J.C. Floyd, Associate Director of Finance Federal Aviation Administration submitted), (v), (viii), (ix), (x), and (xi) and Capital Market Team, Office of of this section. * * * Regulatory Policy, (703) 883–4321, 14 CFR Part 97 TTY (703) 883–4056, floydjc@fca.gov; ■ 11. Amend § 4280.142 by revising the or first sentence of the introductory text to [Docket No. 31200; Amdt. No. 3806] Richard A. Katz, Senior Counsel, Office read as follows: of General Counsel, (703) 883–4020, Standard Instrument Approach § 4280.142 Conditions precedent to TTY (703) 883–4056, katzr@fca.gov. Procedures, and Takeoff Minimums issuance of loan note guarantee. SUPPLEMENTARY INFORMATION: In FR Doc. and Obstacle Departure Procedures; The provisions of § 4279.181 of this 2018–12366 appearing on page 27486 in Miscellaneous Amendments chapter apply except for the Federal Register of Tuesday, June 12, 2018, the following corrections are AGENCY: Federal Aviation § 4279.181(a)(9)(v). * * * made: Administration (FAA), DOT. * * * * * ACTION: Final rule. Dated: June 8, 2018. § 611.1153 [Corrected] Bette B. Brand, ■ 1. On page 27499, in the first column, SUMMARY: This rule amends, suspends, Administrator, Rural Business-Cooperative in part 611, amendatory instruction 2 is or removes Standard Instrument Service. removed. Approach Procedures (SIAPs) and Dated: June 14, 2018. associated Takeoff Minimums and § 611.1155 [Corrected] Obstacle Departure Procedures for Kenneth L. Johnson, ■ 2. On page 27499, in the first column, operations at certain airports. These Administrator, Rural Utilities Service. in part 611, amendatory instruction 3 is regulatory actions are needed because of [FR Doc. 2018–14170 Filed 6–29–18; 8:45 am] removed. the adoption of new or revised criteria, BILLING CODE 3410–XY–P or because of changes occurring in the § 615.5133 [Corrected] National Airspace System, such as the ■ 3. On page 27500, in the first column, commissioning of new navigational FARM CREDIT ADMINISTRATION facilities, adding new obstacles, or in § 615.5133, in paragraph (b), in the fourth sentence, the word ‘‘banks’’ is changing air traffic requirements. These 12 CFR Parts 611 and 615 changes are designed to provide for the corrected to read ‘‘bank’s’’. [Docket No. 2018–12366] safe and efficient use of the navigable § 615.5140 [Corrected] airspace and to promote safe flight RIN 3052–AC84 ■ 4. On page 27502, in the third column, operations under instrument flight rules Organization; Funding and Fiscal in § 615.5140, in paragraph (b)(3)(i), in at the affected airports. Affairs, Loan Policies and Operations, the first sentence, the reference DATES: This rule is effective July 2, and Funding Operations; Investment ‘‘§ 615.5133(a), (b), (c), (d), and (e)’’ is 2018. The compliance date for each Eligibility; Correction corrected to read ‘‘§ 615.5133(a), (b), (c), SIAP, associated Takeoff Minimums, (d), (e), (h), and (i).’’ and ODP is specified in the amendatory AGENCY: Farm Credit Administration. ■ 5. On page 27502, in the third column, provisions. ACTION: Final rule; correction. The incorporation by reference of in § 615.5140, in paragraph (b)(4)(ii), in daltland on DSKBBV9HB2PROD with RULES SUMMARY: The Farm Credit the first sentence, the reference certain publications listed in the Administration (FCA or our) is ‘‘§ 615.5132’’ is corrected to read regulations is approved by the Director correcting a final rule that appeared in ‘‘§ 615.5131’’. of the Federal Register as of July 2, 2018. the Federal Register on June 12, 2019 ■ 6. On page 27503, in the first column, ADDRESSES: Availability of matter that amends our regulations governing in § 615.5140, in paragraph (b)(6)(ii), in incorporated by reference in the investments of both Farm Credit System the first sentence, the reference amendment is as follows: VerDate Sep<11>2014 16:46 Jun 29, 2018 Jkt 244001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\02JYR1.SGM 02JYR1


Document Created: 2018-06-30 00:17:53
Document Modified: 2018-06-30 00:17:53
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionCorrecting amendments.
DatesEffective July 2, 2018.
ContactMark Brodziski, Rural Development, Energy Programs, U.S. Department of Agriculture, 1400 Independence Ave. SW, Stop 3225, Washington, DC 20250-3201; email: [email protected]; telephone number: (202) 720-0410.
FR Citation83 FR 30831 
RIN Number0570-AA85
CFR AssociatedBusiness and Industry; Energy; Grant Programs-Business; Loan Programs-Business and Industry and Rural Areas
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