Intermediary Relending Program, 31845-31848 [2014-12633]

Download as PDF Federal Register / Vol. 79, No. 106 / Tuesday, June 3, 2014 / Rules and Regulations NSIIC Board. Based on funding, the Board announces that proposals may be submitted to the Board for consideration from eligible entities. The Board determines how funds are allocated. Proposals submitted to the Board must be consistent with the purpose of the NSIIC. Discussion of Interim Regulatory Text As provided under 2014 Farm Bill, the AMS is amending the National Sheep Industry Improvement Center regulations at 7 CFR Part 63. This interim rule redesignates (1) the statutory authority from section 375 (7 U.S.C. 2008j) of the Consolidated Farm and Rural Development Act to the Agricultural Marketing Act of 1946 (7 U.S.C. 1621–1627), (2) amends the definition of the Act under section 63.1 consistent with the redesignated statutory authority, and (3) amends the regulations by increasing the administrative cap for the use of the funds from 3 percent to 10 percent. Pursuant to 5 U.S.C. 553, it is found and determined upon good cause that it is impracticable and contrary to the public interest to give preliminary notice prior to putting this rule into effect and that good cause exists for not postponing the effective date of this rule until 30 days after publication in the Federal Register because: (1) These changes need to be in effect as soon as possible because the next available funding opportunities are scheduled to begin in July; and (2) the amendments are necessary to implement provision under the 2014 Farm Bill. For these same reasons a 30-day comment period is deemed appropriate. List of Subjects in 7 CFR Part 63 Administrative practice and procedure, Advertising, Lamb and lamb products, Goat and goat products, Consumer information, Marketing agreements, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, Chapter I of Title 7 of the Code of Federal Regulations is amended as follows: PART 63—NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER 1. Revise the authority for part 63 to read as follows: wreier-aviles on DSK5TPTVN1PROD with RULES ■ Authority: 7 U.S.C. 1621–1627. 2. Revise § 63.1, Act, to read as follows: ■ § 63.1 Act. Act means the Agricultural Marketing Act of 1946 (7 U.S.C. 1621–1627). VerDate Mar<15>2010 15:19 Jun 02, 2014 Jkt 232001 3. In § 63.301 revise paragraph (a)(6) to read as follows: ■ § 63.301 Use of Fund. * * * * * (a) * * * (6) For administration purposes, with a maximum 10 percent of the NSIIC Fund balance at the beginning of each fiscal year for the administration of the NSIIC; * * * * * Dated: May 27, 2014. Rex A. Barnes, Associate Administrator. [FR Doc. 2014–12589 Filed 6–2–14; 8:45 am] BILLING CODE 3410–02–P DEPARTMENT OF AGRICULTURE Rural Housing Service Rural Business-Cooperative Service Rural Utilities Service Farm Service Agency 7 CFR Part 1951 Rural Business-Cooperative Service Rural Utilities Service 7 CFR Part 4274 RIN 0570–AA86 Intermediary Relending Program Rural Business-Cooperative Service, Rural Housing Service, Rural Utilities Service, and Farm Service Agency, USDA. ACTION: Direct final rule. AGENCY: The Rural BusinessCooperative Service (RBS) amends its regulations for the Intermediary Relending Program (IRP). This action is critical to immediately address three major items. First, the Agricultural Act of 2014 incorporates the IRP into the Consolidated Farm and Rural Development Act (Con Act). Therefore the IRP will now be subject to the Con Act, Section 343(a)(13) ‘‘rural and rural area’’ definition. Second, the Agency is making the following changes based on an Office of Inspector General (OIG) audit: Removing part of the definition of revolved funds to eliminate public confusion on its applicability; providing stronger guidance on items that should be taken into consideration when approving subsequent loans; defining what is meant by promptly relending collections from loans made from the SUMMARY: PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 31845 revolving loan fund account; and providing clarification when prior Agency concurrence is needed to make loans. Finally, the Agency is removing provisions for Rural Development Loan Fund (RDLF) servicing as there are no longer any active RDLF accounts. DATES: This direct final rule is effective September 2, 2014, unless RBS receives a written significant adverse comment or written notice of intent to submit a significant adverse comment on any provision other than the definition of ‘‘rural or rural area’’ on or before August 4, 2014. Since the definition of ‘‘rural or rural area’’ is statutory, RBS is unable to change the definition of ‘‘rural or rural area’’ even if significant adverse comments are received. If RBS receives a significant adverse comment on any provision of this rule other than the definition of ‘‘rural or rural area,’’ we will publish a timely document in the Federal Register informing the public that that provision will not take effect. The rule provisions that are not withdrawn will become effective on September 2, 2014, notwithstanding a significant adverse comment on any other provision, unless we determine that it would not be appropriate to do so. Any significant adverse comments will be addressed when RBS issues a final IRP rule to implement the proposed IRP rule that is also being published this date. ADDRESSES: You may submit adverse comments or notice of intent to submit adverse comments to this rule by any of the following methods: Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. Mail: Submit written comments via the U.S. Postal Service to the Branch Chief, Regulations and Paperwork Management Branch, U.S. Department of Agriculture, STOP 0742, 1400 Independence Avenue SW., Washington, DC 20250–0742. Hand 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 300 7th Street SW., 7th Floor address listed above. FOR FURTHER INFORMATION CONTACT: Lori A. Washington, Business Loan and Grant Analyst, Specialty Programs Division, Rural Business-Cooperative Service, U.S. Department of Agriculture, STOP 3225, 1400 Independence Ave. E:\FR\FM\03JNR1.SGM 03JNR1 31846 Federal Register / Vol. 79, No. 106 / Tuesday, June 3, 2014 / Rules and Regulations SW., Washington, DC 20250–3225, Telephone (202) 720–9815, Email lori.washington@wdc.usda.gov. SUPPLEMENTARY INFORMATION: Executive Order 12866—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 number for the program impacted by this action is 10.767, Intermediary Relending Program. Executive Order 12372— Intergovernmental Review of Federal Programs The IRP is subject to the provisions of Executive Order 12372, which requires intergovernmental consultation with State and local officials. Rural Development has conducted intergovernmental consultation in the manner delineated in RD Instruction 1940–J, ‘‘Intergovernmental Review of Rural Development Programs and Activities,’’ and in 7 CFR part 3015, subpart V. wreier-aviles on DSK5TPTVN1PROD with RULES Executive Order 12988—Civil Justice Reform This rule has been reviewed under Executive Order 12988, Civil Justice Reform. In accordance with this rule: (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 this rule, and (3) administrative proceedings in accordance with the regulations of the Agency at 7 CFR part 11 must be exhausted before bringing suit in court challenging action taken under this rule unless those regulations specifically allow bringing suit at an earlier time. Environmental Impact Statement This rule 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 of 1969, Public Law 91–190, an Environmental Impact Statement is not required. Unfunded Mandates Reform Act Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub. L. 104–4, establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, VerDate Mar<15>2010 15:19 Jun 02, 2014 Jkt 232001 and tribal governments and the private sector. Under section 202 of the UMRA, Rural Development must prepare a written statement, including a costbenefit analysis, for proposed and final rules with ‘‘Federal mandates’’ that may result in expenditures to State, local, or tribal governments, in the aggregate, or to the private sector of $100 million or more in any 1 year. When such a statement is needed for a rule, section 205 of UMRA generally requires Rural Development to identify and consider a reasonable number of regulatory alternatives and adopt the least costly, more cost effective, or least burdensome alternative that achieves the objectives of the rule. This rule contains no Federal mandates (under the regulatory provisions of Title II of the UMRA) for State, local, and tribal governments or the private sector. Thus, this rule is not subject to the requirements of sections 202 and 205 of UMRA. relationship or the distribution of powers and responsibilities between the Federal Government and the Indian tribes. Thus, the rule is not subject to the requirements of Executive Order 13175. Additionally, on April 17, 2013, Rural Development focused its quarterly webinar and teleconference based Tribal Consultation on its Rural Business Revolving Loan Fund Programs, including the IRP. Neither adverse nor material comments were received regarding the IRP during, or as a result of, that event. Tribal Consultation inquiries and comments should be directed to Rural Development’s Native American Coordinator at aian@ wdc.usda.gov or (720) 544–2911. Regulatory Flexibility Act In compliance with the Regulatory Flexibility Act, Rural Development has determined that this action would not have a significant economic impact on a substantial number of small entities because the action will not affect a significant number of small entities as defined by the Regulatory Flexibility Act (5 U.S.C. § 601). Rural Development 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. Therefore, a regulatory impact analysis was not performed. 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 for other purposes. Executive Order 13132—Federalism It has been determined under Executive Order 13132, Federalism, that this rule does not have sufficient federalism implications to warrant the preparation of a Federalism Assessment. The provisions contained in this rule will not have a substantial direct effect on States or their political subdivisions or on the distribution of power and responsibilities among the various levels of Government. 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 rule does not have a substantial direct effect on one or more Indian tribe(s) or on either the PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 Paperwork Reduction Act This rule does not revise or impose any new information collection or recordkeeping requirements. E-Government Act Compliance Background The amendments in this rule immediately allow the Agency to comply with the Agricultural Act of 2014, which incorporates the IRP into the Con Act and consequently to utilize the Con Act ‘‘rural and rural area’’ definition for the program. Additionally, the amendments will immediately address the OIG audit findings conducted in fiscal year 2010 involving several issues that require strengthening the Agency’s oversight controls of the IRP program. Lastly, the Agency is also removing provisions for RDLF because there are no longer any active RDLF accounts. If RBS receives a significant adverse comment on a provision of this rule, we will publish a timely withdrawal in the Federal Register informing the public that that provision will not take effect. The rule provisions that are not withdrawn will become effective on the date set out above, notwithstanding a significant adverse comment on any other provision, unless we determine that it would not be appropriate to do so. List of Subjects 7 CFR Part 1951 Loan programs—Agriculture, rural areas. E:\FR\FM\03JNR1.SGM 03JNR1 Federal Register / Vol. 79, No. 106 / Tuesday, June 3, 2014 / Rules and Regulations 7 CFR Part 4274 Community development, Economic development, Loan programs— Business, Rural areas. For reasons set forth in this preamble, chapters XVIII and XLII, title 7, Code of Federal Regulations, are amended as follows: 103–354, revolved funds derived from IRP funds shall be required to comply with the provisions of these regulations and/or loan agreement. CHAPTER XVIII—RURAL HOUSING SERVICE, RURAL BUSINESSCOOPERATIVE SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE PART 4274—DIRECT AND INSURED LOANMAKING PART 1951—SERVICING AND COLLECTIONS 1. The authority citation for part 1951 continues to read as follows: ■ Authority: 5 U.S.C. 301; 7 U.S.C. 1932 Note; 7 U.S.C. 1989; 31 U.S.C. 3716; 42 U.S.C. 1480. Subpart R—Rural Development Loan Servicing § 1951.851 [Amended] 2. Section 1951.851 is amended by removing paragraph (c) and redesignating paragraphs (d) and (e) as paragraphs (c) and (d), respectively. ■ 3. Sections 1951.853, 1951.854, 1951.860, 1951.867, 1951.871, 1951.872, and 1951.877 are removed and reserved. ■ 4. Section 1951.881 is amended by revising paragraph (a) to read as follows: ■ wreier-aviles on DSK5TPTVN1PROD with RULES § 1951.881 Loan servicing. (a) These regulations do not negate contractual arrangements that were previously made by the HHS, Office of Community Services (OCS), or the intermediaries operating relending programs that have already been entered into with ultimate recipients under previous regulations. Pre-existing documents control when in conflict with these regulations. The loan is governed by terms of existing legal documents of each intermediary. The RDLF/IRP intermediary is responsible for compliance with the terms and conditions of the loan agreement. Other than 7 CFR 1951.709(d)(1)(B)(iv), intermediaries receiving an unauthorized loan or using their revolving fund for unauthorized purposes will be serviced in accordance with 7 CFR part 1951, subpart O. * * * * * ■ 5. Section 1951.884 is revised to read as follows: § 1951.884 Revolved funds. For ultimate recipients assisted by the intermediary with FmHA or its successor agency under Public Law VerDate Mar<15>2010 15:19 Jun 02, 2014 Jkt 232001 CHAPTER XLII—RURAL BUSINESSCOOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE 6. The authority citation for part 4274 continues to read as follows: ■ Authority: 5 U.S.C. 301; 7 U.S.C. 1932 note; 7 U.S.C. 1989. Subpart D—Intermediary Relending Program (IRP) 7. Section 4274.302 is amended by removing the last sentence in the definition of ‘‘Agency IRP loan funds,’’ removing the last sentence in the definition of ‘‘Revolved funds,’’ and removing the definition of ‘‘Rural area’’ and adding in its place a definition of ‘‘Rural or rural area’’ to read as follows: ■ § 4274.302 Definitions and abbreviations. (a) * * * Rural or rural area. As described in 7 U.S.C. 1991(a)(13), as amended. * * * * * ■ 8. A new § 4274.304 is added to read as follows: § 4274.304 Prior loans. Any loan made under this program prior to September 2, 2014 may submit to the Agency a written request for an irrevocable election to have the loan serviced in accordance with this subpart. ■ 9. Section 4274.331 is amended by revising paragraph (a)(3)(ii) to read as follows: § 4274.331 Loan limits. (a) * * * (3) * * * (ii) The intermediary is promptly relending all collections from loans made from its IRP revolving fund in excess of what is needed for required debt service, reasonable administrative costs approved by the Agency, and a reasonable reserve for debt service and uncollectible accounts. The intermediary provides documentation to demonstrate that funds available for relending do not exceed the greater of $150,000 or the total amount of loans closed during a calendar quarter on average, over the last 12 months. * * * * * ■ 10. Section 4274.332 is amended by revising paragraphs (b)(2) and (b)(4) to read as follows: PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 § 4274.332 31847 Post award requirements. * * * * * (b) * * * (2) The intermediary must submit an annual budget of proposed administrative costs for Agency approval. The annual budget should itemize cash income and cash out-flow. Projected cash income should consist of, but is not limited to, collection of principal repayment, interest repayment, interest earnings on deposits, fees, and other income. Projected cash out-flow should consist of, but is not limited to, principal and interest payments, reserve for bad debt, and an itemization of administrative costs to operate the IRP revolving fund. Proceeds received from the collection of principal repayment cannot be used for administrative expenses. The amount removed from the IRP revolving fund for administrative costs in any year must be reasonable, must not exceed the actual cost of operating the IRP revolving fund, including loan servicing and providing technical assistance, and must not exceed the amount approved by the Agency in the intermediary’s annual budget. * * * * * (4) Any cash in the IRP revolving fund from any source that is not needed for debt service, approved administrative costs, or reasonable reserves must be available for additional loans to ultimate recipients. Funds may not be used for any investments in securities or certificates of deposit of over 30-day duration without the concurrence of Rural Development. If funds in excess of $250,000 have been unused to make loans to ultimate recipients for 6 months or more, those funds will be returned to Rural Development unless Rural Development provides an exception to the intermediary. Any exception would be based on evidence satisfactory to Rural Development that every effort is being made by the intermediary to utilize the IRP funding in conformance with program objectives. * * * * * ■ 11. Section 4274.338 in amended by revising paragraph (b)(9) and adding paragraph (b)(10) to read as follows: § 4274.338 Loan agreements between the Agency and the Intermediary. * * * * * (b) * * * (9) If any part of the loan has not been used in accordance with the intermediary’s work plan by a date 3 years from the date of the loan agreement, the Agency may cancel the approval of any funds not yet delivered to the intermediary and the E:\FR\FM\03JNR1.SGM 03JNR1 31848 Federal Register / Vol. 79, No. 106 / Tuesday, June 3, 2014 / Rules and Regulations intermediary will return, as an extra payment on the loan, any funds delivered to the intermediary that have not been used by the intermediary in accordance with the work plan. The Agency, at its sole discretion, may allow the intermediary additional time to use the loan funds. Regular loan payments will be based on the amount of funds actually drawn by the intermediary. (10) For IRP intermediaries, IRP funds in excess of $250,000 that have not been used to make loans to ultimate recipients for 6 months or more will be returned to Rural Development unless Rural Development provides an exception to the intermediary. Any exception would be based on evidence satisfactory to Rural Development that every effort is being made by the intermediary to utilize the IRP funding in conformance with program objectives. ■ 12. Section 4274.361 is amended by revising paragraph (a) to read as follows: § 4274.361 Requests to make loans to ultimate recipients. (a) An intermediary may use revolved funds to make loans to ultimate recipients in accordance with § 4274.314(b) without obtaining prior Agency concurrence. Prior Agency concurrence is required when an intermediary proposes to use Agency IRP loan funds to make a loan to an ultimate recipient. * * * * * Dated: May 20, 2014. Douglas J. O’Brien, Deputy Under Secretary, Rural Development. Dated: May 15, 2014. Michael T. Scuse, Under Secretary, Farm and Foreign Agricultural Services. [FR Doc. 2014–12633 Filed 6–2–14; 8:45 am] BILLING CODE 3410–XY–P DEFENSE NUCLEAR FACILITIES SAFETY BOARD 10 CFR Part 1703 FOIA Fee Schedule Update Defense Nuclear Facilities Safety Board. ACTION: Establishment of FOIA Fee Schedule. AGENCY: The Defense Nuclear Facilities Safety Board is publishing its Freedom of Information Act (FOIA) Fee Schedule Update pursuant to the Board’s regulations. SUMMARY: DATES: Effective Date: June 1, 2014. FOR FURTHER INFORMATION CONTACT: Mark T. Welch, General Manager, Defense Nuclear Facilities Safety Board, 625 Indiana Avenue NW., Suite 700, Washington, DC 20004–2901, (202) 694– 7060. The FOIA requires each Federal agency covered by the Act to specify a schedule of fees applicable to processing of requests for agency records. 5 U.S.C. 552(a)(4)(A)(i). On April 23, 2014 the Board published for comment in the Federal Register its Proposed FOIA Fee Schedule, 79 FR 22596. No comments were received in response to that notice, and the Board is now establishing the Fee Schedule. Pursuant to 10 CFR 1703.107(b)(6) of the Board’s regulations, the Board’s General Manager will update the FOIA Fee Schedule once every 12 months. The previous Fee Schedule Update went into effect on July 23, 2012. 77 FR 41258. SUPPLEMENTARY INFORMATION: Board Action Accordingly, the Board issues the following schedule of updated fees for services performed in response to FOIA requests: DEFENSE NUCLEAR FACILITIES SAFETY BOARD SCHEDULE OF FEES FOR FOIA SERVICES [Implementing 10 CFR 1703.107(b)(6)] Search or Review Charge ........................................................................ Copy Charge (paper) ................................................................................ Electronic Media ....................................................................................... Copy Charge (audio and video cassette) ................................................ Duplication of DVD ................................................................................... Copy Charge for large documents (e.g., maps, diagrams) ..................... Dated: May 28, 2014. Mark T. Welch, General Manager. [FR Doc. 2014–12762 Filed 6–2–14; 8:45 am] BILLING CODE 3670–01–P SMALL BUSINESS ADMINISTRATION wreier-aviles on DSK5TPTVN1PROD with RULES Acquisition Process: Task and Delivery Order Contracts, Bundling, Consolidation; Correction Small Business Administration. Correcting amendments. AGENCY: The U.S. Small Business Administration (SBA) published a final rule in the Federal Register on October 2, 2013, which amended its regulations SUMMARY: VerDate Mar<15>2010 15:19 Jun 02, 2014 Effective June 3, 2014. FOR FURTHER INFORMATION CONTACT: RIN 3245–AG20 ACTION: governing small business prime contracting by implementing provisions of the Small Business Jobs Act of 2010. That rule was published with inadvertent errors in two of the regulatory sections. Those errors are corrected in this document. DATES: 13 CFR Parts 125 and 127 $83.00 per hour. $.05 per page, if done in-house, or generally available commercial rate (approximately $.10 per page). $5.00 per electronic media. Actual commercial rates. $25.00 for each individual DVD; $16.50 for each duplicate DVD. Actual commercial rates. Jkt 232001 Dean Koppel, Office of Government Contracting, U.S. Small Business Administration, 409 Third Street SW., 8th Floor, Washington, DC 20416; (202) 205–7322. SUPPLEMENTARY INFORMATION: On October 2, 2013, SBA published a final rule to implement provisions of the Small Business Jobs Act of 2010 pertaining to small business contracting procedures. 78 FR 61114. As discussed in detail below, the rule contained PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 inadvertent errors in the instructions for sections 125.6 and 127.503, which affected the final regulatory text for those sections. In § 125.6, SBA intended to amend paragraph (a) by revising the introductory text only. However, the final rule contained an instruction to revise paragraph (a). As a result, the final rule inadvertently removed paragraphs (a)(1) through (a)(4). SBA is correcting § 125.6 by reinserting these paragraphs. In § 127.503, SBA intended to remove paragraphs (a)(2) and (b)(2) and redesignate paragraphs (a)(3) and (b)(3) as paragraphs (a)(2) and (b)(2), respectively. However, the rule mistakenly instructed to revise paragraphs (a)(1), (a)(2), (b)(1), and (b)(2). As a result of this erroneous instruction, paragraphs (a)(3) and (b)(3) were not redesignated and are currently E:\FR\FM\03JNR1.SGM 03JNR1

Agencies

[Federal Register Volume 79, Number 106 (Tuesday, June 3, 2014)]
[Rules and Regulations]
[Pages 31845-31848]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-12633]


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

DEPARTMENT OF AGRICULTURE

Rural Housing Service

Rural Business-Cooperative Service

Rural Utilities Service

Farm Service Agency

7 CFR Part 1951

Rural Business-Cooperative Service

Rural Utilities Service

7 CFR Part 4274

RIN 0570-AA86


Intermediary Relending Program

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

ACTION: Direct final rule.

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

SUMMARY: The Rural Business-Cooperative Service (RBS) amends its 
regulations for the Intermediary Relending Program (IRP). This action 
is critical to immediately address three major items. First, the 
Agricultural Act of 2014 incorporates the IRP into the Consolidated 
Farm and Rural Development Act (Con Act). Therefore the IRP will now be 
subject to the Con Act, Section 343(a)(13) ``rural and rural area'' 
definition. Second, the Agency is making the following changes based on 
an Office of Inspector General (OIG) audit: Removing part of the 
definition of revolved funds to eliminate public confusion on its 
applicability; providing stronger guidance on items that should be 
taken into consideration when approving subsequent loans; defining what 
is meant by promptly relending collections from loans made from the 
revolving loan fund account; and providing clarification when prior 
Agency concurrence is needed to make loans. Finally, the Agency is 
removing provisions for Rural Development Loan Fund (RDLF) servicing as 
there are no longer any active RDLF accounts.

DATES: This direct final rule is effective September 2, 2014, unless 
RBS receives a written significant adverse comment or written notice of 
intent to submit a significant adverse comment on any provision other 
than the definition of ``rural or rural area'' on or before August 4, 
2014. Since the definition of ``rural or rural area'' is statutory, RBS 
is unable to change the definition of ``rural or rural area'' even if 
significant adverse comments are received.
    If RBS receives a significant adverse comment on any provision of 
this rule other than the definition of ``rural or rural area,'' we will 
publish a timely document in the Federal Register informing the public 
that that provision will not take effect. The rule provisions that are 
not withdrawn will become effective on September 2, 2014, 
notwithstanding a significant adverse comment on any other provision, 
unless we determine that it would not be appropriate to do so. Any 
significant adverse comments will be addressed when RBS issues a final 
IRP rule to implement the proposed IRP rule that is also being 
published this date.

ADDRESSES: You may submit adverse comments or notice of intent to 
submit adverse comments to this rule by any of the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    Mail: Submit written comments via the U.S. Postal Service to the 
Branch Chief, Regulations and Paperwork Management Branch, U.S. 
Department of Agriculture, STOP 0742, 1400 Independence Avenue SW., 
Washington, DC 20250-0742.
    Hand 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 300 7th Street SW., 7th Floor address listed 
above.

FOR FURTHER INFORMATION CONTACT: Lori A. Washington, Business Loan and 
Grant Analyst, Specialty Programs Division, Rural Business-Cooperative 
Service, U.S. Department of Agriculture, STOP 3225, 1400 Independence 
Ave.

[[Page 31846]]

SW., Washington, DC 20250-3225, Telephone (202) 720-9815, Email 
lori.washington@wdc.usda.gov.

SUPPLEMENTARY INFORMATION:

Executive Order 12866--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 number for the program 
impacted by this action is 10.767, Intermediary Relending Program.

Executive Order 12372--Intergovernmental Review of Federal Programs

    The IRP is subject to the provisions of Executive Order 12372, 
which requires intergovernmental consultation with State and local 
officials. Rural Development has conducted intergovernmental 
consultation in the manner delineated in RD Instruction 1940-J, 
``Intergovernmental Review of Rural Development Programs and 
Activities,'' and in 7 CFR part 3015, subpart V.

Executive Order 12988--Civil Justice Reform

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. In accordance with this rule: (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 this rule, and (3) 
administrative proceedings in accordance with the regulations of the 
Agency at 7 CFR part 11 must be exhausted before bringing suit in court 
challenging action taken under this rule unless those regulations 
specifically allow bringing suit at an earlier time.

Environmental Impact Statement

    This rule 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 of 1969, Public 
Law 91-190, an Environmental Impact Statement is not required.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub. 
L. 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, 
Rural Development must prepare a written statement, including a cost-
benefit analysis, for proposed and final rules with ``Federal 
mandates'' that may result in expenditures to State, local, or tribal 
governments, in the aggregate, or to the private sector of $100 million 
or more in any 1 year. When such a statement is needed for a rule, 
section 205 of UMRA generally requires Rural Development to identify 
and consider a reasonable number of regulatory alternatives and adopt 
the least costly, more cost effective, or least burdensome alternative 
that achieves the objectives of the rule.
    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for State, local, and tribal 
governments or the private sector. Thus, this rule is not subject to 
the requirements of sections 202 and 205 of UMRA.

Regulatory Flexibility Act

    In compliance with the Regulatory Flexibility Act, Rural 
Development has determined that this action would not have a 
significant economic impact on a substantial number of small entities 
because the action will not affect a significant number of small 
entities as defined by the Regulatory Flexibility Act (5 U.S.C. Sec.  
601). Rural Development 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. Therefore, a regulatory impact 
analysis was not performed.

Executive Order 13132--Federalism

    It has been determined under Executive Order 13132, Federalism, 
that this rule does not have sufficient federalism implications to 
warrant the preparation of a Federalism Assessment. The provisions 
contained in this rule will not have a substantial direct effect on 
States or their political subdivisions or on the distribution of power 
and responsibilities among the various levels of Government.

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 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 the Indian 
tribes. Thus, the rule is not subject to the requirements of Executive 
Order 13175. Additionally, on April 17, 2013, Rural Development focused 
its quarterly webinar and teleconference based Tribal Consultation on 
its Rural Business Revolving Loan Fund Programs, including the IRP. 
Neither adverse nor material comments were received regarding the IRP 
during, or as a result of, that event. Tribal Consultation inquiries 
and comments should be directed to Rural Development's Native American 
Coordinator at aian@wdc.usda.gov or (720) 544-2911.

Paperwork Reduction Act

    This rule does not revise or impose any new information collection 
or recordkeeping requirements.

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 for other purposes.

Background

    The amendments in this rule immediately allow the Agency to comply 
with the Agricultural Act of 2014, which incorporates the IRP into the 
Con Act and consequently to utilize the Con Act ``rural and rural 
area'' definition for the program. Additionally, the amendments will 
immediately address the OIG audit findings conducted in fiscal year 
2010 involving several issues that require strengthening the Agency's 
oversight controls of the IRP program. Lastly, the Agency is also 
removing provisions for RDLF because there are no longer any active 
RDLF accounts.
    If RBS receives a significant adverse comment on a provision of 
this rule, we will publish a timely withdrawal in the Federal Register 
informing the public that that provision will not take effect. The rule 
provisions that are not withdrawn will become effective on the date set 
out above, notwithstanding a significant adverse comment on any other 
provision, unless we determine that it would not be appropriate to do 
so.

List of Subjects

7 CFR Part 1951

    Loan programs--Agriculture, rural areas.

[[Page 31847]]

7 CFR Part 4274

    Community development, Economic development, Loan programs--
Business, Rural areas.

    For reasons set forth in this preamble, chapters XVIII and XLII, 
title 7, Code of Federal Regulations, are amended as follows:

CHAPTER XVIII--RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE 
SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY, DEPARTMENT 
OF AGRICULTURE

PART 1951--SERVICING AND COLLECTIONS

0
1. The authority citation for part 1951 continues to read as follows:

    Authority:  5 U.S.C. 301; 7 U.S.C. 1932 Note; 7 U.S.C. 1989; 31 
U.S.C. 3716; 42 U.S.C. 1480.

Subpart R--Rural Development Loan Servicing


Sec.  1951.851  [Amended]

0
2. Section 1951.851 is amended by removing paragraph (c) and 
redesignating paragraphs (d) and (e) as paragraphs (c) and (d), 
respectively.

0
3. Sections 1951.853, 1951.854, 1951.860, 1951.867, 1951.871, 1951.872, 
and 1951.877 are removed and reserved.

0
4. Section 1951.881 is amended by revising paragraph (a) to read as 
follows:


Sec.  1951.881  Loan servicing.

    (a) These regulations do not negate contractual arrangements that 
were previously made by the HHS, Office of Community Services (OCS), or 
the intermediaries operating relending programs that have already been 
entered into with ultimate recipients under previous regulations. Pre-
existing documents control when in conflict with these regulations. The 
loan is governed by terms of existing legal documents of each 
intermediary. The RDLF/IRP intermediary is responsible for compliance 
with the terms and conditions of the loan agreement. Other than 7 CFR 
1951.709(d)(1)(B)(iv), intermediaries receiving an unauthorized loan or 
using their revolving fund for unauthorized purposes will be serviced 
in accordance with 7 CFR part 1951, subpart O.
* * * * *

0
5. Section 1951.884 is revised to read as follows:


Sec.  1951.884  Revolved funds.

    For ultimate recipients assisted by the intermediary with FmHA or 
its successor agency under Public Law 103-354, revolved funds derived 
from IRP funds shall be required to comply with the provisions of these 
regulations and/or loan agreement.

CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES 
SERVICE, DEPARTMENT OF AGRICULTURE

PART 4274--DIRECT AND INSURED LOANMAKING

0
6. The authority citation for part 4274 continues to read as follows:

    Authority:  5 U.S.C. 301; 7 U.S.C. 1932 note; 7 U.S.C. 1989.

Subpart D--Intermediary Relending Program (IRP)

0
7. Section 4274.302 is amended by removing the last sentence in the 
definition of ``Agency IRP loan funds,'' removing the last sentence in 
the definition of ``Revolved funds,'' and removing the definition of 
``Rural area'' and adding in its place a definition of ``Rural or rural 
area'' to read as follows:


Sec.  4274.302  Definitions and abbreviations.

    (a) * * *
    Rural or rural area. As described in 7 U.S.C. 1991(a)(13), as 
amended.
* * * * *

0
8. A new Sec.  4274.304 is added to read as follows:


Sec.  4274.304  Prior loans.

    Any loan made under this program prior to September 2, 2014 may 
submit to the Agency a written request for an irrevocable election to 
have the loan serviced in accordance with this subpart.

0
9. Section 4274.331 is amended by revising paragraph (a)(3)(ii) to read 
as follows:


Sec.  4274.331  Loan limits.

    (a) * * *
    (3) * * *
    (ii) The intermediary is promptly relending all collections from 
loans made from its IRP revolving fund in excess of what is needed for 
required debt service, reasonable administrative costs approved by the 
Agency, and a reasonable reserve for debt service and uncollectible 
accounts. The intermediary provides documentation to demonstrate that 
funds available for relending do not exceed the greater of $150,000 or 
the total amount of loans closed during a calendar quarter on average, 
over the last 12 months.
* * * * *

0
10. Section 4274.332 is amended by revising paragraphs (b)(2) and 
(b)(4) to read as follows:


Sec.  4274.332  Post award requirements.

* * * * *
    (b) * * *
    (2) The intermediary must submit an annual budget of proposed 
administrative costs for Agency approval. The annual budget should 
itemize cash income and cash out-flow. Projected cash income should 
consist of, but is not limited to, collection of principal repayment, 
interest repayment, interest earnings on deposits, fees, and other 
income. Projected cash out-flow should consist of, but is not limited 
to, principal and interest payments, reserve for bad debt, and an 
itemization of administrative costs to operate the IRP revolving fund. 
Proceeds received from the collection of principal repayment cannot be 
used for administrative expenses. The amount removed from the IRP 
revolving fund for administrative costs in any year must be reasonable, 
must not exceed the actual cost of operating the IRP revolving fund, 
including loan servicing and providing technical assistance, and must 
not exceed the amount approved by the Agency in the intermediary's 
annual budget.
* * * * *
    (4) Any cash in the IRP revolving fund from any source that is not 
needed for debt service, approved administrative costs, or reasonable 
reserves must be available for additional loans to ultimate recipients. 
Funds may not be used for any investments in securities or certificates 
of deposit of over 30-day duration without the concurrence of Rural 
Development. If funds in excess of $250,000 have been unused to make 
loans to ultimate recipients for 6 months or more, those funds will be 
returned to Rural Development unless Rural Development provides an 
exception to the intermediary. Any exception would be based on evidence 
satisfactory to Rural Development that every effort is being made by 
the intermediary to utilize the IRP funding in conformance with program 
objectives.
* * * * *

0
11. Section 4274.338 in amended by revising paragraph (b)(9) and adding 
paragraph (b)(10) to read as follows:


Sec.  4274.338  Loan agreements between the Agency and the 
Intermediary.

* * * * *
    (b) * * *
    (9) If any part of the loan has not been used in accordance with 
the intermediary's work plan by a date 3 years from the date of the 
loan agreement, the Agency may cancel the approval of any funds not yet 
delivered to the intermediary and the

[[Page 31848]]

intermediary will return, as an extra payment on the loan, any funds 
delivered to the intermediary that have not been used by the 
intermediary in accordance with the work plan. The Agency, at its sole 
discretion, may allow the intermediary additional time to use the loan 
funds. Regular loan payments will be based on the amount of funds 
actually drawn by the intermediary.
    (10) For IRP intermediaries, IRP funds in excess of $250,000 that 
have not been used to make loans to ultimate recipients for 6 months or 
more will be returned to Rural Development unless Rural Development 
provides an exception to the intermediary. Any exception would be based 
on evidence satisfactory to Rural Development that every effort is 
being made by the intermediary to utilize the IRP funding in 
conformance with program objectives.

0
12. Section 4274.361 is amended by revising paragraph (a) to read as 
follows:


Sec.  4274.361  Requests to make loans to ultimate recipients.

    (a) An intermediary may use revolved funds to make loans to 
ultimate recipients in accordance with Sec.  4274.314(b) without 
obtaining prior Agency concurrence. Prior Agency concurrence is 
required when an intermediary proposes to use Agency IRP loan funds to 
make a loan to an ultimate recipient.
* * * * *

    Dated: May 20, 2014.
Douglas J. O'Brien,
Deputy Under Secretary, Rural Development.
    Dated: May 15, 2014.
Michael T. Scuse,
Under Secretary, Farm and Foreign Agricultural Services.
[FR Doc. 2014-12633 Filed 6-2-14; 8:45 am]
BILLING CODE 3410-XY-P