Servicing and Collections-Unauthorized Recipients of Financial Assistance
This action amends the servicing regulations that apply when it is determined that unauthorized recipients have received financial assistance under USDA Business, Cooperative, and Community Facility loan and grant programs. The changes make clear that the first demand letter notifying the recipient of the Agency's determination serves as the initial step in the Agency's collection efforts, and that it may serve as the basis for the recipient's appeal rights. The terms of the first demand letter remain in full force and effect, unless the demand letter is subsequently amended in writing by the Agency after discussions with the recipient or modified as a result of judicial proceedings.
The Rural Utilities Service, an agency which administers the U.S. Department of Agriculture's Rural Development Utilities Programs (hereinafter ``USDA Rural Development'' or the ``Agency,'') gives notice that no adverse comments were received regarding the direct final rule amending its regulations to update the seismic safety requirements of the Agency, and confirms the effective date of the direct final rule.