Guaranteed Loanmaking and Servicing Regulations; Corrections, 11633-11634 [2018-05319]

Download as PDF 11633 Rules and Regulations Federal Register Vol. 83, No. 52 Friday, March 16, 2018 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. List of Subjects in 7 CFR Part 457 The Code of Federal Regulations is sold by the Superintendent of Documents. Accordingly, 7 CFR part 457 is corrected by making the following amendments: DEPARTMENT OF AGRICULTURE Administrative practice and procedure, Crop insurance, Reporting and recordkeeping requirements. Need for Correction 1. The authority citation for part 457 continues to read as follows: ■ 7 CFR Part 457 Authority: 7 U.S.C. 1506(l) and 1506(o). [Docket No. FCIC–17–0004] § 457.8 RIN 0563–AC56 Federal Crop Insurance Corporation, USDA. AGENCY: Correcting amendment. 2. Amend § 457.8, in the Common Crop Insurance Policy, in section 18(f)(2)(iv), by adding the term ‘‘and’’ at the end of the paragraph following the semicolon. Signed in Washington, DC, on March 6, 2018. Heather Manzano, Acting Manager, Federal Crop Insurance Corporation. [FR Doc. 2018–05391 Filed 3–15–18; 8:45 am] This document contains necessary amendments to address corrections in the final rule with request for comments for the Catastrophic Risk Protection Endorsement, the Area Risk Protection Insurance Basic Provisions, and the Common Crop Insurance Policy Basic Provisions which published in the Federal Register on November 24, 2017. SUMMARY: Effective Date: March 16, 2018. FOR FURTHER INFORMATION CONTACT: Francie Tolle, Director, Product Management, Product Administration and Standards Division, Risk Management Agency, United States Department of Agriculture, Beacon Facility, Stop 0812, Room 421, P.O. Box 419205, Kansas City, MO 64141–6205, telephone (816) 926–7730. DATES: SUPPLEMENTARY INFORMATION: jstallworth on DSKBBY8HB2PROD with RULES Background This correction is being published to correct section 18(f)(2)(iv) of the Common Crop Insurance Policy Basic Provisions, published November 24, 2017 (82 FR 55723–55734). The term ‘‘and’’ at the end of the paragraph following the semicolon was inadvertently omitted and is being added in this correction. VerDate Sep<11>2014 14:39 Mar 15, 2018 Jkt 244001 Administrative practice and procedure, Exports, Grains, Reporting and recordkeeping requirements. Accordingly, 7 CFR part 800 is corrected by making the following correcting amendments: [Amended] ■ Catastrophic Risk Protection Endorsement; Area Risk Protection Insurance Regulations; and the Common Crop Insurance Regulations, Basic Provisions ACTION: List of Subjects in 7 CFR Part 800 PART 457—COMMON CROP INSURANCE REGULATIONS Federal Crop Insurance Corporation In FR Doc. 2018–02884 appearing in the Federal Register of Wednesday, February 14, 2018 [83 FR 6451], the final rule used the Roman numeral (v) consecutively in § 800.71 table 3. This document corrects the Code of Federal Regulations by renumbering the last six items in the table. SUPPLEMENTARY INFORMATION: BILLING CODE 3410–08–P DEPARTMENT OF AGRICULTURE PART 800—GENERAL REGULATIONS 1. The authority citation for part 800 continues to read as follows: ■ Authority: 7 U.S.C. 71–87k. § 800.71 [Amended] 2. Section 800.71(a)(1) is amended in Table 3 of Schedule A by redesignating entries (vi) through (x) as entries (vii) through (xi) and redesignating the second entry for (v) as entry (vi). ■ Dated: March 12, 2018. Greg Ibach, Under Secretary, Marketing and Regulatory Programs. [FR Doc. 2018–05315 Filed 3–15–18; 8:45 am] 7 CFR Part 800 BILLING CODE 3410–02–P Fees for Official Inspection and Official Weighing Services Under the United States Grain Standards Act (USGSA); Correction AGENCY: DEPARTMENT OF AGRICULTURE Rural Business-Cooperative Service Agricultural Marketing Service, USDA. Rural Utilities Service Final rule; correcting amendment. 7 CFR Part 4279 ACTION: This document corrects an error introduced into our regulations by a final rule that was published in the February 14, 2018, Federal Register. The final rule used the Roman numeral (v) consecutively in a table. This document corrects the table by renumbering the last six items in the table. SUMMARY: Effective date: March 16, 2018. FOR FURTHER INFORMATION CONTACT: Denise Ruggles, FGIS Executive Program Analyst, USDA AMS; Telephone: (816) 659–8406; Email: Denise.M.Ruggles@ ams.usda.gov. DATES: PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 RIN 0570–AA85 Guaranteed Loanmaking and Servicing Regulations; Corrections Rural Business-Cooperative Service and Rural Utilities Service; USDA. ACTION: Final rule; technical correction. AGENCY: On June 3, 2016, the Rural Business-Cooperative Service promulgated changes to its Guaranteed Loanmaking and Servicing Regulations. Following final implementation of this final rule, RBS found two technical corrections that are necessary. SUMMARY: E:\FR\FM\16MRR1.SGM 16MRR1 11634 DATES: Federal Register / Vol. 83, No. 52 / Friday, March 16, 2018 / Rules and Regulations List of Subjects in 7 CFR Part 4279 Effective March 16, 2018. FOR FURTHER INFORMATION CONTACT: Kelley Oehler, Rural Development, Business Programs, U.S. Department of Agriculture, 1400 Independence Ave. SW, Stop 3224, Washington, DC 20250– 3224; email: kelley.oehler@ wdc.usda.gov; telephone number: (202) 720–1418. SUPPLEMENTARY INFORMATION: jstallworth on DSKBBY8HB2PROD with RULES Need for Corrections 14:39 Mar 15, 2018 PART 4279—GUARANTEED LOAN MAKING 1. The authority citation for part 4279 continues to read as follows: ■ The Agency published a final rule on June 3, 2016 (81 FR 35984–36027) for the purpose of improving program delivery, clarifying the regulations to make them easier to understand, and reducing delinquencies. This document makes technical corrections to the Business and Industry (B&I) Guaranteed Loan regulations in two areas: Full faith and credit and leasehold improvements. Full faith and credit. In § 4279.72(a), Full faith and credit, the Agency identifies in the second, third, and fourth sentences circumstances under which the guarantee is unenforceable in whole or in part. In all circumstances, the guarantee is unenforceable by the lender. However, the rule identifies ‘‘by the lender’’ in the third sentence, but not in the second or fourth sentence. To correct this oversight and provide clarity, the Agency is revising the second and fourth sentences to include the phrase ‘‘by the lender.’’ Leasehold improvements. The B&I Guaranteed Loan Program rule specifically identifies, in § 4279.113, certain leasehold improvements as an eligible project purpose for a B&I loan guarantee. However, there are other provisions in the B&I Guaranteed Loan Program rule that are inconsistent with and undermine this intent. Specifically, the rule relies on the definition of ‘‘leasehold improvements’’ as found in General Acceptable Accounting Practices (GAAP) (see § 4279.2(c)). GAAP considers leasehold improvements to be ‘‘intangible assets.’’ Provisions in the B&I rule regarding intangible assets in the calculation of tangible balance sheet equity (see § 4279.131(d)(2)) and the prohibition of intangible assets from serving as primary collateral (see § 4279.131(b)(3)) make it unintentionally difficult for leasehold improvement projects to meet equity and collateral requirements. Therefore, with this document, the Agency is correcting those provisions of the B&I Guaranteed Loan Program rule that are preventing leasehold improvement projects from meeting equity and collateral requirements for a B&I loan guarantee. VerDate Sep<11>2014 Loan programs—business and industry, Reporting and recordkeeping requirements, Rural areas. Accordingly, 7 CFR chapter XLII is amended by making the following correcting amendments: Jkt 244001 assets (except for leasehold improvements). * * * * * * * * Dated: March 8, 2018. Bette B. Brand, Administrator, Rural Business-Cooperative Service. Dated: March 8, 2018. Christopher A. McLean, Acting Administrator, Rural Utilities Service. [FR Doc. 2018–05319 Filed 3–15–18; 8:45 am] BILLING CODE 3410–XY–P Authority: 5 U.S.C. 301; and 7 U.S.C. 1989. Subpart A—General DEPARTMENT OF TRANSPORTATION 2. Revise the second and fourth sentences of § 4279.72(a) introductory text to read as follows: Federal Aviation Administration ■ § 4279.72 Conditions of guarantee. * * * * (a) * * * The guarantee will be unenforceable by the lender to the extent that any loss is occasioned by a provision for interest on interest or default or penalty interest. * * * Any losses occasioned will be unenforceable by the lender to the extent that loan funds were used for purposes other than those specifically approved by the Agency in its Conditional Commitment or amendment thereof in accordance with § 4279.173(b). * * * * * * * * 14 CFR Part 23 [Docket No. FAA–2018–0200; Special Conditions No. 23–287–SC] * Subpart B—Business and Industry Loans 3. Amend § 4279.131 as follows: a. Add a sentence to the end of paragraph (b)(3); and ■ b. Revise the first and fourth sentences in paragraph (d)(2). The addition and revisions read as follows: ■ ■ § 4279.131 Credit quality. * * * * * (b) * * * (3) * * * For purposes of determining compliance with this requirement, leasehold improvements are considered tangible assets and can serve as primary collateral. * * * * * (d) * * * (2) Tangible balance sheet equity will be determined based upon financial statements prepared in accordance with GAAP except that, for the purposes of this subpart, leasehold improvements are to be considered tangible assets when making the tangible balance sheet equity calculation. * * * Tangible equity cannot include appraisal surplus, bargain purchase gains, or intangible PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 Special Conditions: Honda Aircraft Company, Inc., HA–420 Airplane; Single-Place Side-Facing Lavatory Seat Dynamic Test Federal Aviation Administration (FAA), DOT. ACTION: Final special conditions; request for comments. AGENCY: These special conditions are issued for the Honda Aircraft Company, Inc., HA–420 airplane. This airplane will have a novel or unusual design feature associated with a single-place side-facing seat in the lavatory that can be used as a passenger seat during taxi, takeoff, and landing. The applicable airworthiness regulations do not contain adequate or appropriate safety standards for this design feature. These special conditions contain the additional safety standards that the Administrator considers necessary to establish a level of safety equivalent to that established by the existing airworthiness standards. DATES: The special conditions are effective March 16, 2018, and are applicable March 7, 2018. We must receive your comments by April 16, 2018. ADDRESSES: Send comments identified by docket number FAA–2018–0200 using any of the following methods: • Federal eRegulations Portal: Go to https://www.regulations.gov and follow the online instructions for sending your comments electronically. • Mail: Send comments to Docket Operations, M–30, U.S. Department of Transportation (DOT), 1200 New Jersey Avenue SE, Room W12–140, West Building Ground Floor, Washington, DC 20590–0001. • Hand Delivery of Courier: Take comments to Docket Operations in SUMMARY: E:\FR\FM\16MRR1.SGM 16MRR1

Agencies

[Federal Register Volume 83, Number 52 (Friday, March 16, 2018)]
[Rules and Regulations]
[Pages 11633-11634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05319]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

Rural Utilities Service

7 CFR Part 4279

RIN 0570-AA85


Guaranteed Loanmaking and Servicing Regulations; Corrections

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

ACTION: Final rule; technical correction.

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

SUMMARY: On June 3, 2016, the Rural Business-Cooperative Service 
promulgated changes to its Guaranteed Loanmaking and Servicing 
Regulations. Following final implementation of this final rule, RBS 
found two technical corrections that are necessary.

[[Page 11634]]


DATES: Effective March 16, 2018.

FOR FURTHER INFORMATION CONTACT: Kelley Oehler, Rural Development, 
Business Programs, U.S. Department of Agriculture, 1400 Independence 
Ave. SW, Stop 3224, Washington, DC 20250-3224; email: 
[email protected]; telephone number: (202) 720-1418.

SUPPLEMENTARY INFORMATION: 

Need for Corrections

    The Agency published a final rule on June 3, 2016 (81 FR 35984-
36027) for the purpose of improving program delivery, clarifying the 
regulations to make them easier to understand, and reducing 
delinquencies.
    This document makes technical corrections to the Business and 
Industry (B&I) Guaranteed Loan regulations in two areas: Full faith and 
credit and leasehold improvements.
    Full faith and credit. In Sec.  4279.72(a), Full faith and credit, 
the Agency identifies in the second, third, and fourth sentences 
circumstances under which the guarantee is unenforceable in whole or in 
part. In all circumstances, the guarantee is unenforceable by the 
lender. However, the rule identifies ``by the lender'' in the third 
sentence, but not in the second or fourth sentence. To correct this 
oversight and provide clarity, the Agency is revising the second and 
fourth sentences to include the phrase ``by the lender.''
    Leasehold improvements. The B&I Guaranteed Loan Program rule 
specifically identifies, in Sec.  4279.113, certain leasehold 
improvements as an eligible project purpose for a B&I loan guarantee. 
However, there are other provisions in the B&I Guaranteed Loan Program 
rule that are inconsistent with and undermine this intent. 
Specifically, the rule relies on the definition of ``leasehold 
improvements'' as found in General Acceptable Accounting Practices 
(GAAP) (see Sec.  4279.2(c)). GAAP considers leasehold improvements to 
be ``intangible assets.'' Provisions in the B&I rule regarding 
intangible assets in the calculation of tangible balance sheet equity 
(see Sec.  4279.131(d)(2)) and the prohibition of intangible assets 
from serving as primary collateral (see Sec.  4279.131(b)(3)) make it 
unintentionally difficult for leasehold improvement projects to meet 
equity and collateral requirements. Therefore, with this document, the 
Agency is correcting those provisions of the B&I Guaranteed Loan 
Program rule that are preventing leasehold improvement projects from 
meeting equity and collateral requirements for a B&I loan guarantee.

List of Subjects in 7 CFR Part 4279

    Loan programs--business and industry, Reporting and recordkeeping 
requirements, Rural areas.

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

PART 4279--GUARANTEED LOAN MAKING

0
1. The authority citation for part 4279 continues to read as follows:

    Authority: 5 U.S.C. 301; and 7 U.S.C. 1989.

Subpart A--General

0
2. Revise the second and fourth sentences of Sec.  4279.72(a) 
introductory text to read as follows:


Sec.  4279.72  Conditions of guarantee.

* * * * *
    (a) * * * The guarantee will be unenforceable by the lender to the 
extent that any loss is occasioned by a provision for interest on 
interest or default or penalty interest. * * * Any losses occasioned 
will be unenforceable by the lender to the extent that loan funds were 
used for purposes other than those specifically approved by the Agency 
in its Conditional Commitment or amendment thereof in accordance with 
Sec.  4279.173(b). * * *
* * * * *

Subpart B--Business and Industry Loans

0
3. Amend Sec.  4279.131 as follows:
0
a. Add a sentence to the end of paragraph (b)(3); and
0
b. Revise the first and fourth sentences in paragraph (d)(2).
    The addition and revisions read as follows:


Sec.  4279.131  Credit quality.

* * * * *
    (b) * * *
    (3) * * * For purposes of determining compliance with this 
requirement, leasehold improvements are considered tangible assets and 
can serve as primary collateral.
* * * * *
    (d) * * *
    (2) Tangible balance sheet equity will be determined based upon 
financial statements prepared in accordance with GAAP except that, for 
the purposes of this subpart, leasehold improvements are to be 
considered tangible assets when making the tangible balance sheet 
equity calculation. * * * Tangible equity cannot include appraisal 
surplus, bargain purchase gains, or intangible assets (except for 
leasehold improvements). * * *
* * * * *

    Dated: March 8, 2018.
Bette B. Brand,
Administrator, Rural Business-Cooperative Service.
    Dated: March 8, 2018.
Christopher A. McLean,
Acting Administrator, Rural Utilities Service.
[FR Doc. 2018-05319 Filed 3-15-18; 8:45 am]
 BILLING CODE 3410-XY-P

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