Privacy Act of 1974; System of Records; USDA/Rural Development-1 Current or Prospective Producers or Landowners, Applicants, Borrowers, Grantees, Tenants, and Other Participants in RD Programs, 25369-25374 [2016-09938]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Business-Cooperative Service
• Rural Housing Service
• Rural Utilities Service

[Federal Register Volume 81, Number 82 (Thursday, April 28, 2016)]
[Notices]
[Pages 25369-25374]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09938]


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Notices
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains documents other than rules 
or proposed rules that are applicable to the public. Notices of hearings 
and investigations, committee meetings, agency decisions and rulings, 
delegations of authority, filing of petitions and applications and agency 
statements of organization and functions are examples of documents 
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Federal Register / Vol. 81, No. 82 / Thursday, April 28, 2016 / 
Notices

[[Page 25369]]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service

Rural Business-Cooperative Service

Rural Utilities Service


Privacy Act of 1974; System of Records; USDA/Rural Development-1 
Current or Prospective Producers or Landowners, Applicants, Borrowers, 
Grantees, Tenants, and Other Participants in RD Programs

AGENCY: Rural Housing Service, Rural Business-Cooperative Service, and 
Rural Utilities Service, USDA.

ACTION: Notice of proposed revision to an existing Privacy Act System 
of Records.

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SUMMARY: In accordance with the requirements of the Privacy Act of 1974 
as amended; Section 12204 of the Agricultural Act of 2014 (2014 Farm, 5 
U.S.C. 552a) Rural Development (RD) gives notice of its proposal to 
revise the system of records entitled USDA/Rural Development-1 
Applicant, Borrower, Grantee or Tenant File.

DATES: Comments must be received no later than June 7, 2016. This 
system of records will be effective June 7, 2016 unless Rural 
Development receives comments, which would result in a contrary 
determination.

ADDRESSES: You may submit comments on this notice by any of the 
following methods: You may submit written or electronic comments on 
this notice by any of the following methods:
     Federal eRulemaking Portal: https://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, 300 7th Street SW., 7th Floor, Washington, 
DC 20024.
     Hand Delivery/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: 
    For general questions, please contact: Diego Maldonado, RD Privacy 
Act Officer, 4300 Goodfellow Boulevard, Room 52C13, St. Louis, MO 
63120-0011; 314-457-6279.
    For privacy issues, please contact: Kelvin Fairfax Chief Privacy 
Officer, Cyber and Privacy Policy and Oversight, Office of the Chief 
information Officer, Department of Agriculture, Washington, DC 20250.

SUPPLEMENTARY INFORMATION: The Privacy Act of 1974, as amended (5 
U.S.C. 552a), requires agencies to publish in the Federal Register 
notice of new or revised systems of records maintained by the agency. A 
system of records is a group of any records under the control of any 
agency, from which information is retrieved by the name of an 
individual or by some identifying number, symbol, or other identifying 
particular assigned to an individual.
    In accordance with the Office of Management and Budget (OMB) 
Circular A-130, Rural Development of the United States Department of 
Agriculture (USDA) is proposing to revise an existing Privacy Act 
system of records, which was last published in full on July 17, 1998 
(63 FR 38546).
    The agency proposes to make various revisions to USDA/RD-1, 
including several revisions related to the receipt for services (RFS) 
program. Section 2501A of the Food, Agriculture, Conservation, and 
Trade Act of 1990 was amended by Section 14003 of the Food, 
Conservation, and Energy Act of 2008 (2008 Farm Bill) to require that 
upon the request of a current or prospective producer or landowner, 
certain agencies, including agencies of the Rural Development Mission 
Area, provide a receipt for service concerning any benefit or service 
offered to agricultural producers or landowners. Section 12204 of the 
Agricultural Act of 2014 (2014 Farm Bill) further modified this 
requirement to mandate the issuance of a receipt for service to every 
current or prospective producer or landowner that requests about any 
benefit or service provided to a customer by agencies of the Rural 
Development Mission Area (or denial of service). Accordingly, the 
receipt for service program provides inquirers, applicants, or 
customers of the Rural Business Cooperative Service, the Rural Housing 
Service, and the Rural Utilities Service with a receipt for service for 
certain types of transactions requested. While these routine uses allow 
disclosures outside USDA, and so have some impact on privacy of 
individuals, they are either necessary for carrying out the agency 
mission and minimizing waste, fraud, and abuse; are required by law; or 
benefit the subjects of the records. On balance, the needs of the 
agency and the benefits to the individuals of these disclosures justify 
the minimal impact on privacy. The current SORN is located at: https://www.ocio.usda.gov/sites/default/files/docs/2012/Rural%20Development-1.txt. Rural Development proposes to revise the System of Records to 
reflect the following changes:
    1. A security classification is added to the System Notice.
    2. The system locations section is revised to reflect 
organizational and office location and responsibility changes.
    3. The categories of individuals covered by the system section is 
revised to reflect the Receipt for Services program.
    4. The categories of records in the system section is revised to 
reflect the Receipt for Services program.
    5. The authority for maintenance of the system section is revised 
to reflect changes in the statutory authorities.
    6. A purpose(s) section is added to the System Notice.
    7. RD proposes the following changes to the routine uses:
    a. The language of routine uses 2, 5-13, 15, 16, and 18 is revised 
slightly for clarity and consistency.
    b. Routine use 14 is revised to identify the system, Credit Alert 
Verification Reporting System (CAIVRS) that is used by the Department 
of Housing and Urban Development (HUD) for the purpose of prescreening 
applicants.
    c. Routine use 17 is deleted.

[[Page 25370]]

    d. Routine use 18 is renumbered as routine use 17 and is revised 
slightly for clarity and consistency.
    e. New routine use 18 is added to disclose to the Department of 
Health and Human Services parent locator system for finding parents who 
do not pay child support.
    f. Routine use 19 is added to allow disclosure to contractors, 
grantees, experts, consultants or volunteers who are performing a 
service on behalf of the agency.
    g. Routine use 20 is added to allow disclosure of records to 
customer service agents for training and evaluation purposes.
    h. Routine use 21 is added to allow disclosure of records to 
appropriate agencies, entities, and persons for purposes of response 
and remedial efforts in the event that there has been a breach of the 
data contained in the systems.
    i. Routine use 22 is added to comply with Federal Funding 
Accountability and Transparency Act for public disclosure purposes.
    j. Routine use 23 is added to allow disclosure to the National 
Archives and Records Administration for records management purposes.
    k. Routine use 24 is added to allow disclosure to the Department of 
the Treasury for the purpose of identifying, preventing, or recouping 
improper payments.
    8. The policies and practices for storing, retrieving, accessing, 
retaining, and disposing of records in the system section is revised to 
reflect changes in record keeping including use of electronic records.
    9. The system manager and address section is revised to include a 
Web site link.
    10. The record source categories section is revised to reflect the 
Receipt for Services program.

    Dated: March 23, 2016.
Lisa Mensah,
Under Secretary, Rural Development.
SYSTEM OF RECORDS
    USDA/Rural Development-1.

System name:
    Applicant, Borrower, Grantee, or Tenant File.
    Security Classification: unclassified.

System Location:
    Each Rural Development current or prospective producers or 
landowners, applicants, borrowers, grantees, tenants, their respective 
household members, including members of associations, and other 
participants in RD programs. Files is located in the Local, Area, or 
State Office through which the financial assistance is sought or was 
obtained; in the Centralized Servicing Center (CSC), St. Louis, 
Missouri; and in the Finance Office in St. Louis, Missouri. A State 
Office version of the Local or Area Office file may be located in or 
accessible by the State Office which is responsible for that Local or 
Area Office. Correspondence regarding borrowers is located in the State 
and National Office files.
    A list of all State Offices and any additional States/Offices for 
which an office is responsible is as follows:

    Montgomery, AL
    Palmer, AK
    Phoenix, AZ
    Little Rock, AR
    Davis, CA
    Lakewood, CO
    Dover, DE (includes Maryland)
    Gainesville, FL (includes U. S. Virgin Islands)
    Athens, GA
    Hilo, HI (includes Western Pacific Territories of American Samoa, 
Guam, and Commonwealth of the Marianas Islands, Federated States of 
Micronesia, Republic of Palau, and the Marshall Islands)
    Boise, ID
    Champaign, IL
    Indianapolis, IN
    Des Moines, IA
    Topeka, KS
    Lexington, KY
    Alexandria, LA
    Bangor, ME
    Amherst, MA (includes Connecticut and Rhode Island)
    East Lansing, MI
    St. Paul, MN
    Jackson, MS
    Columbia, MO
    Bozeman, MT
    Lincoln, NE
    Carson City, NV
    Mt. Laurel, NJ
    Albuquerque, NM
    Syracuse, NY
    Raleigh, NC
    Bismarck, ND
    Columbus, OH
    Stillwater, OK
    Portland, OR
    Harrisburg, PA
    San Juan, PR
    Columbia, SC
    Huron, SD
    Nashville, TN
    Temple, TX
    Salt Lake City, UT
    Montpelier, VT (includes New Hampshire)
    Richmond, VA
    Olympia, WA
    Morgantown, WV
    Stevens Point, WI
    Casper, WY

    The address of Local, Area, and State Offices are listed in the 
telephone directory of the appropriate city or town under the heading, 
``United States Government, Department of Agriculture, and Rural 
Development.'' The Financial Office and CSC are located at 4300 
Goodfellow Blvd., St. Louis, MO 63120-0011.

Categories of Individuals Covered by the System:
    Current or prospective producers or landowners, applicants, 
borrowers, grantees, tenants, and their respective household members, 
including members of associations and other participants in RD 
programs.

Categories of Records in the System:
    The system includes files containing the names of current or 
prospective producers or landowners, applicants, borrowers, grantees, 
tenants and their respective household members, including members of 
associations and other participants in RD programs. It may also include 
their social security or employer identification number, bank routing 
and account numbers; and their respective household members' 
characteristics, such as gross and net income, sources of income, 
capital, assets and liabilities, net worth, age, race, number of 
dependents, marital status, reference material, farm or ranch operating 
plans, and property appraisal. The system also includes credit reports 
and personal references from credit agencies, lenders, businesses, and 
individuals. In addition, a running record of observation concerning 
the operations of the person being financed is included. A record of 
deposits to and withdrawals from an individual's supervised bank 
account is also contained in those files where appropriate. In some 
Local Offices, this record is maintained in a separate folder 
containing only information relating to activity within supervised bank 
accounts. Some items of information are extracted from the individual's 
file and placed in a card file for quick reference.

Authority for maintenance of the system:
    Consolidated Farm and Rural Development Act of 1972, as amended; 
Section 12204 of the Agricultural Act of 2014 (Pub. L. 113-79); 
AGRICULTURAL CREDIT 7 U.S.C. 1921 et seq.; FARM HOUSING 42 U.S.C. 1471 
et seq.; Section 901 of the Food Conservation, and Energy Act of 2008 
(Pub L. 110-246); RURAL ELECTRIFICATION AND TELEPHONE SERVICE 7 U.S.C. 
901 et seq.

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Purpose(s):
    Rural Development (RD) maintains numerous information systems that 
are used for current or prospective producers or landowners, 
applicants, borrowers, grantees, tenants, and other participants in RD 
programs designed to help improve the economy and quality of life in 
rural America. These financial systems support such essential public 
facilities and service as water and sewer systems, housing, health 
clinics, emergency service facilities, and electric and telephone 
services. Additionally, RD systems and feeder applications promote 
economic development by supporting loans to businesses through banks, 
credit unions, and community-managed lending pools. The suite of RD 
systems covered by this System of Records is developed and maintained 
by the Deputy Chief Information Officer in St. Louis, MO and the 
National Development Branch in Washington, DC.

Routine uses of records maintained in the group of applications, 
including categories of users and the purposes of such uses:
    1. When a record on its face, or in conjunction with other records, 
indicates a violation or potential violation of law, whether civil, 
criminal or regulatory in nature, and whether arising by general 
statute or particular program statute, or by regulation, rule, or order 
issued pursuant thereto, disclosure may be made to the appropriate 
agency, whether Federal, foreign, State, local, or tribal, or other 
public authority responsible for enforcing, investigating or 
prosecuting such violation or charged with enforcing or implementing 
the statute, or rule, regulation, or order issued pursuant thereto, if 
the information disclosed is relevant to any enforcement, regulatory, 
investigative or prospective responsibility of the receiving entity.
    2. To a Member of Congress or to a Congressional staff member in 
response to an inquiry of the Congressional office made at the written 
request of the constituent about whom the record is maintained.
    3. Rural Development will provide information from these systems to 
the U.S. Department of the Treasury and to other Federal agencies 
maintaining debt servicing centers, in connection with overdue debts, 
in order to participate in the Treasury Offset Program as required by 
the Debt Collection Improvements Act, Public Law 104-134, section 
31001.
    4. Disclosure to Rural Development of name, home addresses, and 
information concerning default on loan repayment when the default 
involves a security interest in tribal allotted or trust land. Pursuant 
to the Cranston-Gonzales National Affordable Housing Act of 1990 (42 
U.S.C. 12701 et seq.), liquidation may be pursued only after offering 
to transfer the account to an eligible tribal member, the tribe, or the 
Indian housing authority serving the tribe(s).
    5. Disclosure of names, home addresses, social security numbers, 
and financial information to a collection or servicing contractor, 
financial institution, or a local, State, or Federal agency, when Rural 
Development determines such referral is appropriate for servicing or 
collecting the borrower's account or as provided for in contracts with 
servicing or collection agencies.
    6. To a court or adjudicative body in a proceeding when: (a) The 
agency or any component thereof; or (b) any employee of the agency in 
his or her official capacity; or (c) any employee of the agency in his 
or her individual capacity where the agency has agreed to represent the 
employee; or (d) the United States Government, is a party to litigation 
or has an interest in such litigation, and by careful review, the 
agency determines that the records are both relevant and necessary to 
the litigation and the use of such records is therefore deemed by the 
agency to be for a purpose that is compatible with the purpose for 
which the agency collected the records.
    7. Disclosure of names, home addresses, and financial information 
for selected borrowers to financial consultants, advisors, lending 
institutions, packagers, agents, and private or commercial credit 
sources, when Rural Development determines such referral is appropriate 
to encourage the borrower to refinance his Rural Development 
indebtedness as required by Title V of the Housing Act of 1949, as 
amended (42 U.S.C. 1471), or to assist the borrower in the sale of the 
property.
    8. Disclosure of legally enforceable debts to the Department of the 
Treasury, Internal Revenue Service (IRS), to be offset against any tax 
refund that may become due the debtor for the tax year in which the 
referral is made, in accordance with the IRS regulations at 26 CFR 
301.6402-6T, Offset of Past Due Legally Enforceable Debt Against 
Overpayment, and under the authority contained in 31 U.S.C. 3720A.
    9. Disclosure of information regarding indebtedness to the Defense 
Manpower Data Center, Department of Defense, and the United States 
Postal Service for the purpose of conducting computer matching programs 
to identify and locate individuals receiving Federal salary or benefit 
payments and who are delinquent in their repayment of debts owed to the 
U.S. Government under certain programs administered by Rural 
Development in order to collect debts under the provisions of the Debt 
Collection Act of 1982 (5 U.S.C. 5514) by voluntary repayment, 
administrative or salary offset procedures, or by collection agencies.
    10. Disclosure of names, home addresses, and financial information 
to lending institutions when Rural Development determines the 
individual may be financially capable of qualifying for credit with or 
without a guarantee.
    11. Disclosure of names, home addresses, social security numbers, 
and financial information to lending institutions that have a lien 
against the same property as Rural Development for the purpose of the 
collection of the debt. These loans may be under the direct and 
guaranteed loan programs.
    12. Disclosure to private attorneys under contract with either 
Rural Development or with the Department of Justice for the purpose of 
foreclosure and possession actions and collection of past due accounts 
in connection with Rural Development.
    13. To the Department of Justice when: (a) The agency or any 
component thereof; or (b) any employee of the agency in his or her 
official capacity where the Department of Justice has agreed to 
represent the employee; or (c) the United States Government, is a party 
to litigation or has an interest in such litigation, and by careful 
review, the agency determines that the records are both relevant and 
necessary to the litigation and the use of such records by the 
Department of Justice is therefore deemed by the agency to be for a 
purpose that is compatible with the purpose for which the agency 
collected the records.
    14. Disclosure of names, home addresses, social security numbers, 
and financial information to the Department of Housing and Urban 
Development for the purpose of evaluating a loan applicant's 
creditworthiness, information that will allow for the pre-screening of 
applicants through the Credit Alert Verification Reporting System 
(CAIVRS) computer matching program. An applicant shall be pre-screened 
for any debts owed or loans guaranteed by the Federal government to 
ascertain if the applicant is delinquent in paying a debt owed to or 
insured by the Federal government. Authorized employees of, and 
approved private lenders acting on behalf of, the Federal agencies 
participating in the CAIVRS computer matching program will be able to 
search the CAIVRS database.

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    Explanatory Text: Credit Alert Verification Reporting System 
(CAIVRS) is a Federal government database of delinquent Federal debtors 
that when reviewed, allows Federal agencies to reduce the risk to 
Federal loan and loan guarantee programs. CAIVRS alerts participating 
Federal lending agencies when an applicant for credit benefits has a 
Federal lien, judgment, or a Federal loan that is currently in default 
or foreclosure, or has had a claim paid by a reporting agency. CAIVRS 
allows authorized employees of participating Federal agencies to access 
a database of delinquent Federal borrowers for the purpose of pre-
screening direct loan applicants for credit worthiness and also permits 
approved private lenders acting on behalf of the Federal agency to 
access the delinquent borrower database for the purpose of pre-
screening the credit worthiness of applicants for federally guaranteed 
loans. CAIVRS authority derives from the Computer Matching and Privacy 
Protection Act of 1988 (Pub. L. 100-503) as amended, Office of 
Management and Budget (OMB) Circulars A-129 (Managing Federal Credit 
Programs) and A-70 (Policies and Guidelines for Federal Credit 
Programs), the Budget and Accounting Acts of 1921 and 1950, as amended, 
the Debt Collection Act of 1982, as amended, the Deficit Reduction Act 
of 1984, as amended, and the Debt Collection Improvement Act of 1996, 
as amended.
    15. Disclosure of names, home addresses, social security numbers, 
and financial information to the Department of Labor, State Wage 
Information Collection Agencies, and other Federal, State, and local 
agencies, as well as those responsible for verifying information 
furnished to qualify for Federal benefits, to conduct wage and benefit 
matching through manual and/or automated means, for the purpose of 
determining compliance with Federal regulations and appropriate 
servicing actions against those not entitled to program benefits, 
including possible recovery of improper benefits.
    16. Disclosure of names, home addresses, and financial information 
to financial consultants, advisors, or underwriters, when Rural 
Development determines such referral is appropriate for developing 
packaging and marketing strategies involving the sale of Rural 
Development loan assets.
    17. Disclosure of names, home and work addresses, home telephone 
numbers, social security numbers, and financial information to escrow 
agents (which also could include attorneys and title companies) 
selected by the applicant or borrower for the purpose of closing the 
loan.
    18. Disclosure to Health and Human Services (HHS) parent locator 
system for finding parents who do not pay child support: The name and 
current address of record of an individual may be disclosed from this 
system of records to the parent locator service of the Department of 
HHS or authorized persons defined by Public Law 93-647, 42 U.S.C. 653.
    19. To agency contractors, grantees, experts, consultants or 
volunteers who have been engaged by the agency to assist in the 
performance of a service related to this system of records and who need 
to have access to the records in order to perform the activity. 
Recipients shall be required to comply with the requirements of the 
Privacy Act of 1974, as amended, pursuant to 5 U.S.C. 552a(m).
    20. Disclosure to customer service agents for training and 
evaluation purposes. Information is collected during calls made by the 
client to the CSC Customer Service Section to discuss questions or 
concerns pertaining to their mortgage account(s) with Rural 
Development. The information discussed during the call to the CSC help 
desk is captured and used for training and evaluation purposes to 
ensure proper procedures are being followed and accurate information is 
provided when assisting the client.
    21. To appropriate agencies, entities, and persons when (1) When 
Rural Development suspects or has confirmed that the security or 
confidentiality of information in the system of records has been 
compromised; (2) the Department has determined that, as a result of the 
suspected or confirmed compromise, there is a risk of harm to economic 
or property interests, identity theft or fraud, or harm to the security 
or integrity of this system or other systems or programs (whether 
maintained by the Department or another agency or entity) that rely 
upon the compromised information; and (3) the disclosure made to such 
agencies, entities, and persons is reasonably necessary to assist in 
connection with the Department's efforts to respond to the suspected or 
confirmed compromise and prevent, minimize, or remedy such harm.
    22. To comply with Federal Funding Accountability and Transparency 
Act (FFATA) and similar statutory requirements for public disclosure in 
situations where records reflect loans, grants, or other payments to 
members of the public: USDA will disclose information about individuals 
from this system of records in accordance with the Federal Funding 
Accountability and Transparency Act of 2006 (Pub. L. 109-282; codified 
at 31 U.S.C. 6101, et seq.); section 204 of the E-Government Act of 
2002 (Pub. L. 107-347; 44 U.S.C. 3501 note), and the Office of Federal 
Procurement Policy Act (41 U.S.C. 403 et seq.), or similar statutes 
requiring agencies to make available publicly information concerning 
Federal financial assistance, including grants, subgrants, loan awards, 
cooperative agreements and other financial assistance; and contracts, 
subcontracts, purchase orders, task orders, and delivery orders.
    23. To the National Archives and Records Administration for to the 
National Archives and Records Administration for records management 
inspections conducted under 44 U.S.C. 2904 and 2906.
    24. To the Department of the Treasury for the purpose of 
identifying, preventing, or recouping improper payments to an applicant 
for, or recipient of, Federal funds, including funds disbursed by a 
State in a State-administered, Federally funded program, information 
that will allow for pre-payment eligibility review of a loan applicant 
through the Do Not Pay computer matching program. Authorized employees 
of, and approved private lenders acting on behalf of, the Federal 
agencies participating in the Do Not Pay computer matching program will 
be able to search the Do Not Pay database. The disclosure may include 
applicant's name, home address, Social Security Number, income/
financial data, date of birth, personal telephone number, and personal 
email address.

Explanatory Text:
    In order to help eliminate waste, fraud, and abuse in Federal 
programs, Federal agencies are to focus on preventing payment errors 
before they occur. The purpose of the Department of the Treasury's Do 
Not Pay program is to reduce improper payments by intensifying efforts 
to eliminate payment error, waste, fraud, and abuse in the major 
programs administered by the Federal Government, while continuing to 
ensure that Federal programs serve and provide access to their intended 
beneficiaries. Federal agencies shall thoroughly review the Do Not Pay 
computer matching database, to the extent permitted by law to determine 
applicant eligibility before the release of any Federal funds. By 
checking the Do Not Pay database before making payments, Federal 
agencies can identify ineligible recipients and prevent certain 
improper payments from being made. The Do Not Pay program authority 
derives from the Improper

[[Page 25373]]

Payments Elimination and Recovery Improvement Act of 2012 (Pub. L. 112-
248).

Disclosure To Consumer Reporting Agencies:
    Disclosures pursuant to 5 U.S.C. 552a(b)(12): Disclosures may be 
made from this system to consumer reporting agencies as defined in the 
Fair Credit Reporting Act (15 U.S.C. 1681a(f)) or the Federal Claims 
Collection Act (31 U.S.C. 3701(a)(3)).

Policies and Practices for Storing, Retrieving, Accessing, Retaining, 
and Disposing of Records in the System:
Storage:
    Records are maintained in file folders at the Local, Area, State, 
and National Offices. All records are converted to electronic format 
and stored on a USDA managed certified and accredited storage 
repository. Once agency employees convert the paper documents to 
digital records, verify that the digital record is readable and 
successfully ported to the imaging repository the manual documents are 
destroyed in compliance with Rural Development regulation (shredding). 
Other program imaging repositories are utilized to allow multi-point 
access to electronic records but the manual documents are retained 
securely in the local office until such time as the account is 
considered closed per Rural Development Regulation 2033-A. At that 
time, the documents/case files are destroyed in a manner as outlined in 
Rural Development regulation. If the office cannot accommodate proper, 
manual file retention standards (inadequate space to secure and house 
documents/files that require retention), inactive documents/case files 
(i.e., charge-offs, pay-offs, denials, withdrawn) can be retired to the 
Federal Records Center. Any records shipped to the Center for retention 
must be clearly inventoried and marked with a destroy-by date. The 
destroy date is determined by the record type after it is closed (e.g., 
loss to the government retention is 7 years after case is closed). The 
retention schedule can be found at RD 2033-A and the Operational 
Records Manual. For further information contact the RD Records Officer. 
If closed/inactive files are retained at the local office until such 
time as they are eligible for destruction, they are stored in a secured 
location.

Retrievability:
    Records are indexed by name, identification number and type of loan 
or grant. Data may be retrieved from the paper records or the 
electronic storage. All Rural Development state and field offices as 
well as the financial office and the Centralized Servicing Center (CSC) 
have the telecommunications capability available to access this subset 
of data.

Safeguards:
    Paper records are kept in locked offices at the Local, Area, State, 
and National Offices. For electronic records and an online retrieval 
system at the Finance Office access is restricted to authorized Rural 
Development personnel. A system of operator and terminal passwords and 
code numbers is used to restrict access to the online system. Passwords 
and code numbers are changed as necessary.
    The records are protected by the confidentiality requirements of 
the USDA Office of the Chief Information Officer (OCIO) Cyber Security 
Manuals and the provisions of the Privacy Act. Only authorized USDA 
employees will have access to the records in this system on a need to 
know basis. Role based access controls are used and the systems are 
accessible via the USDA Intranet. Only authorized USDA personnel will 
have access to these records. The systems covered by this notice have 
been categorized as having a Moderate security categorization impact as 
identified in Federal Information Processing Standard (FIPS) 199, 
Standards for Security Categorization of Federal Information and 
Information Systems. The security controls implemented within the 
systems will correspond with those published in the National Institute 
of Standards and Technology (NIST) Special Publication 800-53, 
Recommended Security Controls for Federal Information Technology 
Systems for a Moderate impact system.
    Users are only granted system access upon successful completion of 
information security training and each user is supplied with a unique 
and strong user-id and password. The user roles are restrictive and 
based on the principle of least privilege allowing for adequate 
performance of job functions and access to information is based on a 
need to know.
    Due to the financial nature of the systems covered by this notice, 
the systems also adhere to the security controls identified in the 
Federal Information Security Control Audit Manual (FISCAM). The 
mandatory requirements of FIPS 199 and FIPS 200, Minimum Security 
Requirements for Federal Information and Information Systems, support 
the Federal Information Security Management Act (FISMA) and the FISCAM 
supports the mandated Office of Management and Budget (OMB) Circular A-
123, Management of Internal Controls.
    Moreover, Specific USDA security requirements are adhered to 
through the USDA Cyber Security Manuals including but not limited to: 
DM3545-000, Personnel Security, and DM3510-001, Physical Security 
Standards for Information Technology Restricted Space.

Retention and disposal:
    Records are maintained subject to the Federal Records Disposal Act 
of 1943 (44 U.S.C. 33), and in accordance with Rural Development's 
disposal schedules. The Local, Area, State, and National Offices 
dispose of records by shredding, burning, or other suitable disposal 
methods after established retention periods have been fulfilled. 
(Destruction methods may never compromise the confidentiality of 
information contained in the records.) Applications, including credit 
reports and personal references, which are rejected, withdrawn, or 
otherwise terminated are kept in the Local, Area, or State Office for 
two full fiscal years and one month after the end of the fiscal year in 
which the application was rejected, withdrawn, canceled, or expired. If 
final action was taken on the application, including an appeal, 
investigation, or litigation, the application is kept for one full 
fiscal year after the end of the fiscal year in which final action was 
taken.
    The records, including credit reports, of borrowers who have paid 
or otherwise satisfied their obligation are retained in the Local, 
Area, or State Office for one full fiscal year after the fiscal year in 
which the loan was paid in full. Correspondence records at the National 
Office which concern borrowers and applicants are retained for three 
full fiscal years after the last year in which there was 
correspondence.

System manager(s) and address:
    The Community Development Manager at the Local Office; the Rural 
Development Manager at the Area Office; and the State Director at the 
State Office; the Deputy Chief Financial Officer in St. Louis, MO; and 
the respective Administrators in the National Office at the following 
addresses: Administrator, Rural Housing Service, USDA, 1400 
Independence Avenue SW., Room 5014, South Building, Stop 0701, 
Washington, DC 20250-0701; Administrator, Rural Business-Cooperative 
Service, USDA, 1400 Independence Avenue SW., Room 5045, South Building, 
Stop 3201, Washington, DC 20250-3201;

[[Page 25374]]

Administrator, Rural Utilities Service, USDA, 1400 Independence Avenue 
SW., Room 4501, South Building, Stop 1510, Washington, DC 20250-1510. 
Contact information can be found at https://www.rd.usda.gov.

Notification procedure:
    Any individual may request information regarding this system of 
records, or determine whether the system contains records pertaining to 
him/her, from the appropriate System Manager. If the specific location 
of the record is not known, the individual should address his or her 
request to: Rural Development, Freedom of information Officer, United 
States Department of Agriculture, 1400 Independence Avenue SW., Stop 
0742, and Washington, DC 20250-0742.
    A request for information pertaining to an individual must include 
a name; an address; the Rural Development office where the loan or 
grant was applied for, approved, and/or denied; the type of Rural 
Development program; and the date of the request or approval.

Record access procedures:
    Any individual may obtain information regarding the procedures for 
gaining access to a record in the system which pertains to him or her 
by submitting a written request to one of the System Managers.

Contesting record procedures:
    Same as record access procedures.

Record source categories:
    Information in this system comes primarily Credit reports and 
personal references come primarily from current or prospective 
producers or landowners, applicants, borrowers, grantees, tenant. 
Credit agencies and creditors.

Exemptions claimed for the system:
    None.

[FR Doc. 2016-09938 Filed 4-27-16; 8:45 am]
 BILLING CODE 3410-XT-P