Announcement of New Cushion of Credit Program Provisions, 26644 [2019-11924]
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26644
Federal Register / Vol. 84, No. 110 / Friday, June 7, 2019 / Notices
Telephone: (202) 690–4492. Email:
Thomas.Dickson@usda.gov.
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
Title: Rural Cooperative Development
Grants.
OMB Number: 0570–0006.
Expiration Date of Approval:
December 31, 2019.
Type of Request: Intent to extend the
clearance for collection of information
under RD Instruction 4284–F, Rural
Cooperative Development Grants.
Abstract: The primary purpose of the
Rural Business-Cooperative Service
(RBS) is to promote understanding, use,
and development of the cooperative
form of business as a viable option for
enhancing the income of agricultural
producers and other rural residents. The
primary objective of the Rural
Cooperative Development Grants
program is to improve the economic
condition of rural areas through
cooperative development. Grants will be
awarded on a competitive basis to
nonprofit corporations and institutions
of higher education based on specific
selection criteria.
Estimate of Burden: Public reporting
burden for this collection of information
is estimated to average 15 minutes to 96
hours per response.
Respondents: Nonprofit corporations
and institutions of higher education.
Estimated Number of Respondents:
55.
Estimated Number of Responses per
Respondent: 8.56.
Estimated Number of Responses: 471.
Estimated Total Annual Burden on
Respondents: 7,264 hours.
Copies of this information collection
can be obtained from Robin M. Jones,
Innovation Center, at (202) 772–1172,
Email: robin.m.jones@usda.gov.
All responses to this notice will be
summarized and included in the request
for OMB approval. All comments will
also become a matter of public record.
Bette B. Brand,
Administrator, Rural Business-Cooperative
Service.
[FR Doc. 2019–11983 Filed 6–6–19; 8:45 am]
BILLING CODE 3410–XY–P
DEPARTMENT OF AGRICULTURE
jbell on DSK3GLQ082PROD with NOTICES
Rural Utilities Service
Announcement of New Cushion of
Credit Program Provisions
Rural Utilities Service, USDA.
ACTION: Notice.
AGENCY:
The Rural Utilities Service
(RUS), a Rural Development agency of
SUMMARY:
VerDate Sep<11>2014
18:13 Jun 06, 2019
Jkt 247001
the United States Department of
Agriculture, is issuing this notice
regarding the new provisions affecting
RUS borrower participation in the
Cushion of Credit (CoC) program
pursuant to the Agriculture
Improvement Act of 2018, (the 2018
Farm Bill).
DATES: Effective December 20, 2018, all
future deposits into CoC accounts have
been prohibited; however, withdrawal
from these accounts is permitted for
prepayment on RUS direct or
guaranteed loans, and without penalty.
FOR FURTHER INFORMATION CONTACT: If
you have other questions or concerns,
please send your questions or comments
to: rd.nfaoc.tesb@stl.usda.gov, or you
can contact Steven Tempia, telephone
number: (314) 457–4088. A Rural
Development representative will follow
up with a response by email or phone.
Additionally, RUS will maintain FAQs
on its web page with respect to CoC
prepayments.
SUPPLEMENTARY INFORMATION: Effective
December 20, 2018, all future deposits
into CoC accounts have been prohibited;
however, withdrawal from these
accounts is permitted for prepayment on
RUS direct or guaranteed loans, and
without penalty. Pursuant to Section
6503 of the 2018 Farm Bill (H.R. 2
(115th), no new CoC deposits could be
accepted as of December 20, 2018. With
respect to existing CoC deposits, Section
6503 altered the prior, fixed interest rate
with phased in interest rate reductions
over the next two years. The current 5
percent rate will be paid until the end
of fiscal year 2020, September 30, 2020.
Beginning on October 1, 2020, CoC
deposits will earn 4 percent interest
until September 30, 2021. Starting on
October 1, 2021 and thereafter, account
balances will earn the applicable,
variable 1-year Treasury rate.
Additionally, pursuant to Section
6503, from December 20, 2018 until
September 30, 2020, RUS borrowers,
may, at their sole discretion, apply their
CoC balances to prepay their
outstanding loans made or guaranteed
under the Rural Electrification Act, 7
U.S.C. 901 et seq., whether direct RUS
loans or Federal Financing Bank
guaranteed loans. The principal portion
of the loan that is prepaid with CoC
balances during this period will not be
subject to a prepayment premium. With
respect to RUS direct loans that prepay
using CoC accounts during the period,
all terms and conditions of the loan, or
a prepayment agreement, if any, that
restrict or qualify such prepayment shall
be waived. Prepayments using funds not
in CoC accounts will remain subject to
existing agreements.
PO 00000
Frm 00004
Fmt 4703
Sfmt 9990
Instructions: Unless otherwise
directed, borrowers requesting to prepay
loan balances with CoC accounts will
have the amount specified applied first
to outstanding interest and fees, and
then to outstanding principal, pursuant
to their loan agreements. Borrowers
must also indicate which accounts they
would like to prepay, otherwise such
amounts will be applied to the oldest
debt accounts first. If a borrower
requests an entire prepayment to
outstanding principal but does not
provide for an additional payment to
cover outstanding interest and fees,
such payment will be applied first to
interest and fees. At the borrower’s
request, a prepayment calculation will
be provided to confirm the amount due
for individual accounts.
Should borrowers choose to
supplement additional non-CoC funds
to prepay additional loan accounts, or
portions thereof, the associated
premium will be applied to that portion
of the prepayment.
In order that borrower’s prepayments
are fulfilled as requested, borrowers
should submit the following
information to: rd.nfaoc.tesb@
stl.usda.gov with the subject line title
‘‘CUSHION OF CREDIT PREPAY
REQUEST’’ and the following:
(1) The dollar amount of the CoC to
be applied;
(2) The specific loan advance
accounts to be prepaid;
(3) The method in which they wish
CoC balances to be applied (optional);
(4) Whether the borrower intends to
supplement the prepayment with
additional funds and the amount of
such supplemental funds; and
(5) Contact information to coordinate
prepayment, and for any necessary
correspondence (i.e. notice as to
whether any amounts are missing
pursuant to their specific request).
All requests will be promptly
processed, and the transactions will be
reflected on the next Statement of
Account and Transactions (Statement)
after the prepayment is made. If the
Statement does not reflect the correct
application, please contact
rd.nfaoc.tesb@stl.usda.gov immediately.
Chad Rupe,
Acting Administrator, Rural Utilities Service.
[FR Doc. 2019–11924 Filed 6–6–19; 8:45 am]
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]]>Agencies
[Federal Register Volume 84, Number 110 (Friday, June 7, 2019)]
[Notices]
[Page 26644]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11924]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
Announcement of New Cushion of Credit Program Provisions
AGENCY: Rural Utilities Service, USDA.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Rural Utilities Service (RUS), a Rural Development agency
of the United States Department of Agriculture, is issuing this notice
regarding the new provisions affecting RUS borrower participation in
the Cushion of Credit (CoC) program pursuant to the Agriculture
Improvement Act of 2018, (the 2018 Farm Bill).
DATES: Effective December 20, 2018, all future deposits into CoC
accounts have been prohibited; however, withdrawal from these accounts
is permitted for prepayment on RUS direct or guaranteed loans, and
without penalty.
FOR FURTHER INFORMATION CONTACT: If you have other questions or
concerns, please send your questions or comments to:
[email protected], or you can contact Steven Tempia, telephone
number: (314) 457-4088. A Rural Development representative will follow
up with a response by email or phone. Additionally, RUS will maintain
FAQs on its web page with respect to CoC prepayments.
SUPPLEMENTARY INFORMATION: Effective December 20, 2018, all future
deposits into CoC accounts have been prohibited; however, withdrawal
from these accounts is permitted for prepayment on RUS direct or
guaranteed loans, and without penalty. Pursuant to Section 6503 of the
2018 Farm Bill (H.R. 2 (115th), no new CoC deposits could be accepted
as of December 20, 2018. With respect to existing CoC deposits, Section
6503 altered the prior, fixed interest rate with phased in interest
rate reductions over the next two years. The current 5 percent rate
will be paid until the end of fiscal year 2020, September 30, 2020.
Beginning on October 1, 2020, CoC deposits will earn 4 percent interest
until September 30, 2021. Starting on October 1, 2021 and thereafter,
account balances will earn the applicable, variable 1-year Treasury
rate.
Additionally, pursuant to Section 6503, from December 20, 2018
until September 30, 2020, RUS borrowers, may, at their sole discretion,
apply their CoC balances to prepay their outstanding loans made or
guaranteed under the Rural Electrification Act, 7 U.S.C. 901 et seq.,
whether direct RUS loans or Federal Financing Bank guaranteed loans.
The principal portion of the loan that is prepaid with CoC balances
during this period will not be subject to a prepayment premium. With
respect to RUS direct loans that prepay using CoC accounts during the
period, all terms and conditions of the loan, or a prepayment
agreement, if any, that restrict or qualify such prepayment shall be
waived. Prepayments using funds not in CoC accounts will remain subject
to existing agreements.
Instructions: Unless otherwise directed, borrowers requesting to
prepay loan balances with CoC accounts will have the amount specified
applied first to outstanding interest and fees, and then to outstanding
principal, pursuant to their loan agreements. Borrowers must also
indicate which accounts they would like to prepay, otherwise such
amounts will be applied to the oldest debt accounts first. If a
borrower requests an entire prepayment to outstanding principal but
does not provide for an additional payment to cover outstanding
interest and fees, such payment will be applied first to interest and
fees. At the borrower's request, a prepayment calculation will be
provided to confirm the amount due for individual accounts.
Should borrowers choose to supplement additional non-CoC funds to
prepay additional loan accounts, or portions thereof, the associated
premium will be applied to that portion of the prepayment.
In order that borrower's prepayments are fulfilled as requested,
borrowers should submit the following information to:
[email protected] with the subject line title ``CUSHION OF
CREDIT PREPAY REQUEST'' and the following:
(1) The dollar amount of the CoC to be applied;
(2) The specific loan advance accounts to be prepaid;
(3) The method in which they wish CoC balances to be applied
(optional);
(4) Whether the borrower intends to supplement the prepayment with
additional funds and the amount of such supplemental funds; and
(5) Contact information to coordinate prepayment, and for any
necessary correspondence (i.e. notice as to whether any amounts are
missing pursuant to their specific request).
All requests will be promptly processed, and the transactions will
be reflected on the next Statement of Account and Transactions
(Statement) after the prepayment is made. If the Statement does not
reflect the correct application, please contact
[email protected] immediately.
Chad Rupe,
Acting Administrator, Rural Utilities Service.
[FR Doc. 2019-11924 Filed 6-6-19; 8:45 am]
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