Conditions of Guarantee, 42593-42595 [2011-18007]

Download as PDF srobinson on DSK4SPTVN1PROD with PROPOSALS Federal Register / Vol. 76, No. 138 / Tuesday, July 19, 2011 / Proposed Rules acreage, and production information is generally collected from the respondent during a personal visit to the FSA Service Center and again from the respondent during a personal visit to the insurance agent. The forms will still be available to accommodate respondents with no Internet access and those who wish to continue to personally visit the FSA Service Center and insurance agent to report the information. When a web-based single system is fully implemented, respondents will be allowed to report the information once. The information will also be shared by both FSA and RMA, as well as other USDA agencies, such as NRCS and NASS, that have the authority and need for such information. In each phase of system implementation, some or all of the commodity, acreage, and production information in the existing approved information collections will be reported via web-based single source reporting system. Furthermore, the information collected will be the same as the information currently approved. Additionally, the respondent will only have to report it one time through a single source thereby reducing the respondent’s burden of reporting such information and eliminating the duplicate reporting that may be currently required. The information will then be shared with the other agency without having the producer personally visit both offices. The information collected will be the same as the information currently approved and will be used in the same manner it would be used if reported separately to each agency. FSA and RMA anticipate that producers will be able to use their precision-ag systems, farm management information systems, or download data files to directly report commodity, acreage, and production information needed to participate in USDA programs. The information being collected will consist of, but not be limited to: Producer name, location state, commodity name, commodity type or variety, location county, date planted, land location (legal description, FSA farm number, FSA track number, FSA field number), intended use, prevented planting acres, acres planted but failed, planted acres, and production of commodity produced. FSA and RMA will implement the web-based system in phases until fully implemented. The first phase will be initiated in the fall of 2011 in Dickenson, Marion, McPherson, and Saline Counties in Kansas, and only for the collection of information from producers regarding winter wheat. In VerDate Mar<15>2010 17:35 Jul 18, 2011 Jkt 223001 the first phase, approximately 200 respondents will use a web-based single source reporting system and 3,705 respondents will report information during a personal visit. To ensure statutory criteria are met for both Federal crop insurance programs, FSA, and Commodity Credit Corporation (CCC) programs, the collection of commodity, acreage, and production information is necessary. This is not a request for a change, addition or deletion to the currently approved information collections. However, the existing approved information collections will be updated, modified or eliminated, as applicable, to reflect the reduction in burden on the respondents when the web-based system is fully implemented. Respondents: Producers. Estimated Annual Number of Respondents Utilizing the Web-Based Single Source Reporting System: 204,250. Estimated Annual Number of Respondents Reporting the Information by Personally Visiting One Agency and Sharing Information Between Agencies: 62,005. Estimated Annual Number of Responses per Respondent: 1.5. Estimated Total Annual Burden on Respondents Utilizing the Web-Based Single Source Reporting System: 230,287 hours. (This estimated public reporting burden is from the existing OMB approved information collections 0560–0004.) Estimated Total Annual Burden on Respondents Reporting the Information by Personally Visiting One Agency and Having That Information Sharing Information Between Agencies: 131,761 hours. (This estimated public reporting burden is from the existing OMB approved information collections 0560– 0004, including the estimated burden for travel time.) We are requesting comments on all aspects of this information collection to help us to: (1) Evaluate whether the collection of information is necessary for the proper performance of the functions of the agencies, including whether the information will have practical utility; (2) Evaluate the accuracy of the agency’s estimate of burden including the validity of the methodology and assumptions used; (3) Enhance the quality, utility and clarity of the information to be collected; (4) Minimize the burden of the collection of information on those who are to respond through use of appropriate automated, electronic, mechanical, or other technological PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 42593 collection techniques or other forms to technology. All comments in response to this notice, including names and addresses when provided, will be a matter of public record. Comments will be summarized and included in the request for Office of Management and Budget (OMB) approval. Executive Order 13563, ‘‘Improving Regulation and Regulatory Review’’ On January 18, 2011, the President issued Executive Order 13563, ‘‘Improving Regulation and Regulatory Review,’’ to ensure that Federal regulations use the best available tools to promote innovation that will reduce costs and burden while allowing public participation and an open exchange of ideas. We are required to make the agency’s regulatory program more effective or less burdensome in achieving the regulatory objectives. To read background information on Executive Order 13563, go to https:// www.regulations.gov/exchange/topic/ eo-13563. Signed on July 11, 2011. Karis T. Gutter, Acting Under Secretary, Farm and Foreign Agricultural Services. [FR Doc. 2011–17923 Filed 7–18–11; 8:45 am] BILLING CODE 3410–05–P DEPARTMENT OF AGRICULTURE Rural Business-Cooperative Service Rural Utilities Service 7 CFR Part 4279 RIN 0570–AA81 Conditions of Guarantee AGENCY: Rural Business-Cooperative Service, USDA. ACTION: Notice of proposed rulemaking. SUMMARY: The Rural BusinessCooperative Service is proposing to amend its regulations for the Business and Industry Guaranteed Loan Program to ensure the Agency has sufficient right(s) for reimbursement when an Agency guaranteed portion of a loan is sold to a holder. This action is necessary because the rule is not sufficiently clear that the use of loan funds for purposes not approved by the Agency is a reason to find the guarantee unenforceable regardless of whether the guaranteed portion of the loan has been sold to a holder. This action ensures the Agency has sufficient rights for reimbursement when an Agency guaranteed portion of the loan is sold to a holder. E:\FR\FM\19JYP1.SGM 19JYP1 42594 Federal Register / Vol. 76, No. 138 / Tuesday, July 19, 2011 / Proposed Rules DATES: Comments on this proposed rule must be received on or before August 18, 2011. A second public comment period will not be held. You may submit comments to this proposed rule 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, STOP 0742, 1400 Independence Avenue, SW., Washington, DC 20250–0742. • 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. ADDRESSES: FOR FURTHER INFORMATION CONTACT: Mr. David Lewis, Rural Development, Business Programs, U.S. Department of Agriculture, 1400 Independence Avenue, SW., Stop 3224, Washington, DC 20250–3221; e-mail: david.lewis@wdc.usda.gov; telephone (202) 690–0797. SUPPLEMENTARY INFORMATION: Classification This rule has been determined to be not significant for purposes of Executive Order 12866 and has not been reviewed by the Office of Management and Budget (OMB). Programs Affected The Catalog of Federal Domestic Assistance Program number assigned to the Business and Industry Guaranteed Loan Program is 10.782. srobinson on DSK4SPTVN1PROD with PROPOSALS Environmental Impact Statement This document has been reviewed in accordance with 7 CFR part 1940, subpart G, ‘‘Environmental Program.’’ Rural Development 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 (NEPA) of 1969, 42 U.S.C. 4321 et seq., an Environmental Impact Statement is not required. VerDate Mar<15>2010 17:35 Jul 18, 2011 Jkt 223001 Executive Order 12372, Intergovernmental Consultation The program is subject to the provisions of Executive Order 12372, which requires intergovernmental consultation with State and local officials. Consultation will be completed at the time of the action performed. Executive Order 12988, Civil Justice This rule has been reviewed under Executive Order 12988, Civil Justice Reform. The Agency has determined that this rule meets the applicable standards provided in section 3 of the Executive Order. Additionally, (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 the rule; and (3) administrative appeal procedures, if any, must be exhausted before litigation against the Department or its agencies may be initiated, in accordance with the regulations of the National Appeals Division of USDA at 7 CFR part 11. Executive Order 13132, Federalism The policies contained in this rule do not have any substantial direct effect on states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. Nor does this final rule impose substantial direct compliance costs on state and local governments. Therefore, consultation with states is not required. Regulatory Flexibility Act Certification Under section 605(b) of the Regulatory Flexibility Act, 5 U.S.C. 605(b), the Agency certifies that this rule will not have a significant economic impact on a substantial number of small entities. The Agency made this determination based on the fact that this regulation only impacts those who choose to participate in the program. Small entity applicants will not be impacted to a greater extent than large entity applicants. Unfunded Mandates This rule contains no Federal mandates (under the regulatory provisions of Title II of the Unfunded Mandates Reform Act of 1995) 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 Unfunded Mandates Reform Act of 1995. PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 Executive Order 13175, Consultation and Coordination With Indian Tribal Governments This executive order imposes requirements on Rural Development in the development of regulatory policies that have tribal implications or preempt tribal laws. Rural Development has determined that the proposed rule does not have a substantial direct effect on one or more Indian tribe(s) or on either the relationship or the distribution of powers and responsibilities between the Federal Government and Indian tribes. Thus, this proposed rule is not subject to the requirements of Executive Order 13175. If a tribe determines that this rule has implications of which Rural Development is not aware and would like to engage with Rural Development on this rule, please contact Rural Development’s Native American Coordinator at (202) 690–1681 or AIAN@wdc.usda.gov. Paperwork Reduction Act This rule contains no new reporting or recordkeeping requirements that would require approval under the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35). E-Government Act Compliance Rural Development is committed to complying with the E-Government Act, to promote the use of the Internet and other information technologies, to provide increased opportunities for citizen access to Government information and services, and other purposes. I. Background The Agency reviewed 7 CFR 4279.72, which is composed of three paragraphs, the first two of which are pertinent. Section 4279.72(a) lays out the conditions under which a guarantee is not enforceable. The text separately identifies four such conditions: 1. In cases of fraud or misrepresentation of which a lender or holder has actual knowledge at the time it becomes such lender or holder or which a lender or holder participates in or condones; 2. To the extent that any loss is occasioned by a provision for interest on interest; 3. To the extent any loss is occasioned by the violation of usury laws, negligent servicing, or failure to obtain the required security regardless of the time at which the Agency acquires knowledge thereof; and 4. To the extent that loan funds are used for purposes other than those specifically approved by the Agency in its Conditional Commitment. E:\FR\FM\19JYP1.SGM 19JYP1 Federal Register / Vol. 76, No. 138 / Tuesday, July 19, 2011 / Proposed Rules Section 4279.72(b) discusses rights and liabilities when a guaranteed portion of a loan is sold to a holder. It states, in part, that the lender will be liable for payments made by USDA to any holder in the event of ‘‘material fraud, negligence or misrepresentation by the lender or the lender’s participation in or condoning of such material fraud, negligence or misrepresentation.’’ Section 4279.72(b) does not, however, refer to the other conditions listed in § 4279.72(a). The Agency believes the lender’s responsibility to reimburse the Agency for the improper activity should not be dependent upon whether the lender or holder owns the loan guarantee. However, the Agency is concerned that this policy is not sufficiently clear in this regulation. Therefore, the Agency is clarifying its position on this matter. The regulatory change is not retroactive nor does it affect the rights of current holders. However, the Agency recognizes that the issue should be clarified in the regulation. Accordingly, the Agency is proposing to make these changes in this proposed rule. II. Discussion of Change Section 4279.72(a) addresses the lender’s coverage under the loan note guarantee. It also identifies those instances when the conduct of a holder may jeopardize their interest in the loan note guarantee. Section 4279.72(b) addresses the holder’s coverage under the loan note guarantee. The change being made by this rule clarifies that having a holder purchase part of the loan note guarantee does not increase the coverage provided to the lender under the loan note guarantee. Therefore, the Agency will require the lender to reimburse it for any amount it pays to a holder that would not have been paid to a lender under § 4279.72(a). The Agency is proposing to revise § 4279.72(b) to address the situation discussed in the ‘‘Background’’ section and similar situations. srobinson on DSK4SPTVN1PROD with PROPOSALS List of Subjects in 7 CFR Part 4279 Loan programs—Business and industry—Rural development assistance, Rural areas. For the reasons set forth in the preamble, chapter XLII, title 7 of the Code of Federal Regulations is proposed to be amended as follows: VerDate Mar<15>2010 17:35 Jul 18, 2011 Jkt 223001 Chapter XLII—Rural Business-Cooperative Service and Rural Utilities Service, Department of Agriculture PART 4279—GUARANTEED LOANMAKING 1. The authority citation for part 4279 is revised to read as follows: Authority: 5 U.S.C. 301; 7 U.S.C. 1932(a); and 7 U.S.C. 1989. Subpart A—General 2. Amend § 4279.72 by revising the last sentence of paragraph (b) to read as follows: § 4279.72 Conditions of guarantee. * * * * * (b) * * * The lender will reimburse the Agency for any payments the Agency makes to a holder of lender’s guaranteed loan that, under the Loan Note Guarantee, would not have been paid to the lender had the lender retained the entire interest in the guaranteed loan and not conveyed an interest to a holder. * * * * * Dated: July 12, 2011. Dallas Tonsager, Under Secretary Rural Development. [FR Doc. 2011–18007 Filed 7–18–11; 8:45 am] BILLING CODE 3410–XY–P DEPARTMENT OF AGRICULTURE Animal and Plant Health Inspection Service 9 CFR Parts 53, 71, 82, 93, 94, 95, and 104 [Docket No. APHIS–2009–0094] RIN 0579–AD45 Importation of Live Birds and Poultry, Poultry Meat, and Poultry Products From a Region in the European Union AGENCY: Animal and Plant Health Inspection Service, USDA. ACTION: Proposed rule. SUMMARY: We are proposing to amend the regulations governing the importation of animals and animal products by recognizing 25 Member States of the European Union as the APHIS-defined European Union poultry trade region and adding it to the list of regions we consider to be free of Newcastle disease. We are taking this action based on a risk evaluation that we prepared in which we determined that the proposed region meets our requirements for being considered free of Newcastle disease. We also PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 42595 determined that the region meets our requirements for being considered free of highly pathogenic avian influenza. In addition, we are proposing to establish requirements governing the importation of live birds and poultry, including hatching eggs, and poultry meat and products from the APHIS-defined European Union poultry trade region, and to update avian disease terms and definitions. These actions would facilitate the importation of live birds and poultry, and poultry meat and products, from the APHIS-defined European Union poultry trade region while protecting the United States from communicable avian diseases. DATES: We will consider all comments that we receive on or before September 19, 2011. ADDRESSES: You may submit comments by either of the following methods: • Federal eRulemaking Portal: Go to (https://www.regulations.gov/ #!documentDetail;D=APHIS-2009-00940001). • Postal Mail/Commercial Delivery: Send your comment to Docket No. APHIS–2009–0094, Regulatory Analysis and Development, PPD, APHIS, Station 3A–03.8, 4700 River Road Unit 118, Riverdale, MD 20737–1238. Supporting documents and any comments we receive on this docket may be viewed at (https:// www.regulations.gov/ #!docketDetail;D=APHIS-2009-0094) or in our reading room, which is located in room 1141 of the USDA South Building, 14th Street and Independence Avenue, SW., Washington, DC. Normal reading room hours are 8 a.m. to 4:30 p.m., Monday through Friday, except holidays. To be sure someone is there to help you, please call (202) 690–2817 before coming. FOR FURTHER INFORMATION CONTACT: Mr. Javier Vargas, Case Manager, National Center for Import and Export, Veterinary Services, APHIS, 4700 River Road Unit 38, Riverdale, MD 20737–1231; (301) 734–4356. SUPPLEMENTARY INFORMATION: Background The Animal and Plant Health Inspection Service (APHIS) regulations in title 9 of the Code of Federal Regulations (CFR), parts 93, 94, and 95, govern the importation into the United States of specified animals and animal products and byproducts to prevent the introduction of various animal diseases, including exotic Newcastle disease 1 1 For reasons explained later in this document, we propose to replace in the regulations the term E:\FR\FM\19JYP1.SGM Continued 19JYP1

Agencies

[Federal Register Volume 76, Number 138 (Tuesday, July 19, 2011)]
[Proposed Rules]
[Pages 42593-42595]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-18007]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

Rural Utilities Service

7 CFR Part 4279

RIN 0570-AA81


Conditions of Guarantee

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: The Rural Business-Cooperative Service is proposing to amend 
its regulations for the Business and Industry Guaranteed Loan Program 
to ensure the Agency has sufficient right(s) for reimbursement when an 
Agency guaranteed portion of a loan is sold to a holder. This action is 
necessary because the rule is not sufficiently clear that the use of 
loan funds for purposes not approved by the Agency is a reason to find 
the guarantee unenforceable regardless of whether the guaranteed 
portion of the loan has been sold to a holder. This action ensures the 
Agency has sufficient rights for reimbursement when an Agency 
guaranteed portion of the loan is sold to a holder.

[[Page 42594]]


DATES: Comments on this proposed rule must be received on or before 
August 18, 2011. A second public comment period will not be held.

ADDRESSES: You may submit comments to this proposed rule 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, STOP 0742, 1400 Independence Avenue, SW., 
Washington, DC 20250-0742.
     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: Mr. David Lewis, Rural Development, 
Business Programs, U.S. Department of Agriculture, 1400 Independence 
Avenue, SW., Stop 3224, Washington, DC 20250-3221; e-mail: 
david.lewis@wdc.usda.gov; telephone (202) 690-0797.

SUPPLEMENTARY INFORMATION:

Classification

    This rule has been determined to be not significant for purposes of 
Executive Order 12866 and has not been reviewed by the Office of 
Management and Budget (OMB).

Programs Affected

    The Catalog of Federal Domestic Assistance Program number assigned 
to the Business and Industry Guaranteed Loan Program is 10.782.

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' Rural Development 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 (NEPA) of 1969, 
42 U.S.C. 4321 et seq., an Environmental Impact Statement is not 
required.

Executive Order 12372, Intergovernmental Consultation

    The program is subject to the provisions of Executive Order 12372, 
which requires intergovernmental consultation with State and local 
officials. Consultation will be completed at the time of the action 
performed.

Executive Order 12988, Civil Justice

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. The Agency has determined that this rule meets the 
applicable standards provided in section 3 of the Executive Order. 
Additionally, (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 the rule; and (3) administrative appeal procedures, if 
any, must be exhausted before litigation against the Department or its 
agencies may be initiated, in accordance with the regulations of the 
National Appeals Division of USDA at 7 CFR part 11.

Executive Order 13132, Federalism

    The policies contained in this rule do not have any substantial 
direct effect on states, on the relationship between the national 
government and the states, or on the distribution of power and 
responsibilities among the various levels of government. Nor does this 
final rule impose substantial direct compliance costs on state and 
local governments. Therefore, consultation with states is not required.

Regulatory Flexibility Act Certification

    Under section 605(b) of the Regulatory Flexibility Act, 5 U.S.C. 
605(b), the Agency certifies that this rule will not have a significant 
economic impact on a substantial number of small entities. The Agency 
made this determination based on the fact that this regulation only 
impacts those who choose to participate in the program. Small entity 
applicants will not be impacted to a greater extent than large entity 
applicants.

Unfunded Mandates

    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the Unfunded Mandates Reform Act of 1995) 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 
Unfunded Mandates Reform Act of 1995.

Executive Order 13175, Consultation and Coordination With Indian Tribal 
Governments

    This executive order imposes requirements on Rural Development in 
the development of regulatory policies that have tribal implications or 
preempt tribal laws. Rural Development has determined that the proposed 
rule does not have a substantial direct effect on one or more Indian 
tribe(s) or on either the relationship or the distribution of powers 
and responsibilities between the Federal Government and Indian tribes. 
Thus, this proposed rule is not subject to the requirements of 
Executive Order 13175. If a tribe determines that this rule has 
implications of which Rural Development is not aware and would like to 
engage with Rural Development on this rule, please contact Rural 
Development's Native American Coordinator at (202) 690-1681 or 
AIAN@wdc.usda.gov.

Paperwork Reduction Act

    This rule contains no new reporting or recordkeeping requirements 
that would require approval under the Paperwork Reduction Act of 1995 
(44 U.S.C. chapter 35).

E-Government Act Compliance

    Rural Development is committed to complying with the E-Government 
Act, to promote the use of the Internet and other information 
technologies, to provide increased opportunities for citizen access to 
Government information and services, and other purposes.

I. Background

    The Agency reviewed 7 CFR 4279.72, which is composed of three 
paragraphs, the first two of which are pertinent.
    Section 4279.72(a) lays out the conditions under which a guarantee 
is not enforceable. The text separately identifies four such 
conditions:
    1. In cases of fraud or misrepresentation of which a lender or 
holder has actual knowledge at the time it becomes such lender or 
holder or which a lender or holder participates in or condones;
    2. To the extent that any loss is occasioned by a provision for 
interest on interest;
    3. To the extent any loss is occasioned by the violation of usury 
laws, negligent servicing, or failure to obtain the required security 
regardless of the time at which the Agency acquires knowledge thereof; 
and
    4. To the extent that loan funds are used for purposes other than 
those specifically approved by the Agency in its Conditional 
Commitment.

[[Page 42595]]

    Section 4279.72(b) discusses rights and liabilities when a 
guaranteed portion of a loan is sold to a holder. It states, in part, 
that the lender will be liable for payments made by USDA to any holder 
in the event of ``material fraud, negligence or misrepresentation by 
the lender or the lender's participation in or condoning of such 
material fraud, negligence or misrepresentation.'' Section 4279.72(b) 
does not, however, refer to the other conditions listed in Sec.  
4279.72(a).
    The Agency believes the lender's responsibility to reimburse the 
Agency for the improper activity should not be dependent upon whether 
the lender or holder owns the loan guarantee. However, the Agency is 
concerned that this policy is not sufficiently clear in this 
regulation. Therefore, the Agency is clarifying its position on this 
matter. The regulatory change is not retroactive nor does it affect the 
rights of current holders. However, the Agency recognizes that the 
issue should be clarified in the regulation. Accordingly, the Agency is 
proposing to make these changes in this proposed rule.

II. Discussion of Change

    Section 4279.72(a) addresses the lender's coverage under the loan 
note guarantee. It also identifies those instances when the conduct of 
a holder may jeopardize their interest in the loan note guarantee. 
Section 4279.72(b) addresses the holder's coverage under the loan note 
guarantee. The change being made by this rule clarifies that having a 
holder purchase part of the loan note guarantee does not increase the 
coverage provided to the lender under the loan note guarantee. 
Therefore, the Agency will require the lender to reimburse it for any 
amount it pays to a holder that would not have been paid to a lender 
under Sec.  4279.72(a).
    The Agency is proposing to revise Sec.  4279.72(b) to address the 
situation discussed in the ``Background'' section and similar 
situations.

List of Subjects in 7 CFR Part 4279

    Loan programs--Business and industry--Rural development assistance, 
Rural areas.
    For the reasons set forth in the preamble, chapter XLII, title 7 of 
the Code of Federal Regulations is proposed to be amended as follows:

Chapter XLII--Rural Business-Cooperative Service and Rural Utilities 
Service, Department of Agriculture

PART 4279--GUARANTEED LOANMAKING

    1. The authority citation for part 4279 is revised to read as 
follows:

    Authority:  5 U.S.C. 301; 7 U.S.C. 1932(a); and 7 U.S.C. 1989.

Subpart A--General

    2. Amend Sec.  4279.72 by revising the last sentence of paragraph 
(b) to read as follows:


Sec.  4279.72  Conditions of guarantee.

* * * * *
    (b) * * * The lender will reimburse the Agency for any payments the 
Agency makes to a holder of lender's guaranteed loan that, under the 
Loan Note Guarantee, would not have been paid to the lender had the 
lender retained the entire interest in the guaranteed loan and not 
conveyed an interest to a holder.
* * * * *

    Dated: July 12, 2011.
Dallas Tonsager,
Under Secretary Rural Development.
[FR Doc. 2011-18007 Filed 7-18-11; 8:45 am]
BILLING CODE 3410-XY-P