Announcement of New Cushion of Credit Program Provisions, 26644 [2019-11924]

Download as PDF 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] BILLING CODE P E:\FR\FM\07JNN1.SGM 07JNN1

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]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Announcement of New Cushion of Credit Program Provisions

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice.

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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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