General Information; Delegation of Authority

Federal RegisterApr 26, 1994

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DEPARTMENT OF AGRICULTURE

Rural Electrification Administration

7 CFR Part 1700

General Information; Delegation of Authority

AGENCY: Rural Electrification Administration, USDA.

ACTION: Final rule.

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SUMMARY: The Rural Electrification Administration (REA) hereby revises

and codifies its Delegation of Authority to reflect several changes in

REA organizational structure and functions. These descriptions of REA's

organization and methods by which its functions are channeled and

determined are being issued as a final rule as guidance to the public.

EFFECTIVE DATE: This rule is effective April 26, 1994.

FOR FURTHER INFORMATION CONTACT: F. Lamont Heppe, Jr., Program Support

Staff, Rural Electrification Administration, room 2234-S, U.S.

Department of Agriculture, 14th and Independence Avenue, SW.,

Washington, DC 20250-1500, Telephone: (202) 720-0736.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This final rule has been determined to be not significant for

purposes of Executive Order 12866 and therefore has not been reviewed

by OMB.

Regulatory Flexibility Act Certification

The Administrator of REA has determined that this final rule will

not have a significant economic impact on a substantial number of small

entities as defined in the Regulatory Flexibility Act (5 U.S.C. 601 et

seq.).

National Environmental Policy Act Certification

The Administrator of REA has determined that this final rule will

not significantly affect the quality of the human environment as

defined by the National Environmental Policy Act of 1969 (42 U.S.C.

4321 et seq.). Therefore, this action does not require an environmental

impact statement or assessment.

Catalog of Federal Domestic Assistance

The programs described by this final rule are listed in the 1991

Catalog of Federal Domestic Assistance Programs under No. 10.850, Rural

Electrification Loans and Loan Guarantees; No. 10.851, Rural Telephone

Loans and Loan Guarantees; No. 10.852, Rural Telephone Bank Loans; and

No. 10.854, Rural Economic Development Loans and Grants. This catalog

is available on a subscription basis from the Superintendent of

Documents, the United States Government Printing Office, Washington, DC

20402.

Executive Order 12372

This final rule is excluded from the scope of Executive Order

12372, Intergovernmental Consultant. A Notice of Final rule entitled

Department Programs and Activities Excluded from Executive Order 12372

(50 FR 47034) exempts REA electric loans and loan guarantees from

coverage under this Order.

Information Collection and Recordkeeping Requirements

This final rule contains no information collection or recordkeeping

provisions requiring the Office of Management and Budget approval under

the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).

This final rule revises and reflects the current organizational

structure of REA and methods of by which its functions are channeled.

Accordingly, pursuant to this rule's being issued as a final rule

without providing the public with an opportunity to comment since this

is a ``. . . rule of the agency organization, procedure, or practice .

. .''

List of Subjects in 7 CFR Part 1700

Electric power, Freedom of information, Loan programs--

communication, Loan programs--energy, Organization and functions

(Government agencies), Rural areas, Telephone.

Therefore, REA amends part 1700 of 7 CFR chapter XVII as follows:

PART 1700--GENERAL INFORMATION

1. The authority citation for 7 CFR part 1700 continues to read as

follows:

Authority: 7 U.S.C. 901 et seq.; Delegation of Authority by the

Secretary of Agriculture, 7 CFR 2.23; Delegation of Authority by the

Under Secretary of Agriculture for Small Community and Rural

Development, 7 CFR 2.72; 7 U.S.C. 1921 et seq.; 5 U.S.C. 301, 552; 7

CFR 1.1-1.16.

2. Subparts D through L are added to read as follows:

Subpart D--Delegations of Authority; General

Sec.

1700.40 Exercise of delegated authority.

1700.41 Persons serving in acting capacities.

1700.42 Persons serving as acting Administrator.

1700.43 Persons serving as acting Assistant Administrator.

1700.44 Contracts approved on behalf of the Administrator.

1700.45-1700.59 [Reserved]

Subpart E--Delegations of Authority; Agency Issuances and Certain

Correspondence

1700.60 Agency issuances.

1700.61 Agency publications control officer.

1700.62-1700.69 [Reserved]

Subpart F--Delegations; Authorities Reserved by the Administrator

1700.70 General.

1700.71 Rural economic development loan and grant and distance

learning and medical link grant programs.

1700.72 Electric program.

1700.73 Telephone program.

1700.74-1700.89 [Reserved]

Subpart G--Delegations of Authority; Loan Review Committees

1700.90 General.

1700.91 Senior loan review committee.

1700.92 Assistant Administrator's loan committee.

1700.93 Rural economic development recommendation committee.

1700.94-1700.99 [Reserved]

Subpart H--Delegations of Authority; Rural Economic Development,

Program Support, and Borrower Accounting Activities

1700.100 General.

1700.101 Deputy Administrator.

1700.102 Assistant Administrator--Economic Development and

Technical Services.

1700.103 Director--Rural Development Assistance Staff.

1700.104 Chief, Financing Branch--Rural Development Assistance

Staff.

1700.105 Director, Borrower Accounting Division.

1700.106 Chief, Technical Accounting and Auditing Staff.

1700.107 Chiefs, Area Accounting Branches.

1700.108 Field accountants.

1700.109 Director--Program Support Staff.

1700.110-1700.119 [Reserved]

Subpart I--Delegations of Authority; Electric Program

1700.120 General.

1700.121 Deputy Administrator.

1700.122 Assistant Administrator--Electric.

1700.123 Deputy Assistant Administrator--Electric.

1700.124 Regional Directors.

1700.125 Chiefs, Regional Engineering Branches.

1700.126 Chiefs, Area Operations Branches.

1700.127 Director--Power Supply Division.

1700.128 Chief, Operations Branch, Power Supply Division.

1700.129 Chiefs, Power Engineering Branches, Power Supply Division.

1700.130 General Field Representatives--Electric.

1700.131 Director, Electric Staff Division.

1700.132 Technical Standards Committees ``A'' and ``B''--Electric.

1700.133-1700.139 [Reserved]

Subpart J--Delegations of Authority; Telephone Program

1700.140 General.

1700.141 General delegations.

1700.142 Deputy Administrator.

1700.143 Assistant Administrator--Telephone.

1700.144 Deputy Assistant Administrator--Telephone.

1700.145 Regional Directors.

1700.146 Chiefs, Regional Engineering Branches--Telephone.

1700.147 Chiefs, Regional Operations Branches--Telephone.

1700.148 General Field Representatives--Telephone.

1700.149 Director--Telecommunications Standards Division.

1700.150 Technical Standards Committees ``A'' and ``B''--Telephone.

1700.151-1700.159 [Reserved]

Subpart K--Delegations of Authority; Financial Services

1700.160 General.

1700.161 Program Advisor, Financial Services Staff.

1700.162-1700.169 [Reserved]

Subpart L--Delegations of Authority; Financial Operations Activities

1700.170 General.

1700.171 Deputy Administrator.

1700.172 Director, Financial Operations Division.

1700.173 Chief, Loans Receivable Branch.

1700.174-1700.189 [Reserved]

Subpart D--Delegations of Authority; General

Sec. 1700.40 Exercise of delegated authority.

(a) Unless specifically reserved, or otherwise delegated, the

delegations of authority contained in subparts D through L of this part

include the authority to take any action or execute any document deemed

necessary and proper to the discharge of such responsibilities. In the

exercise of authority delegated in subparts D through L of this part,

all applicable REA policies, regulations, and procedures should be

followed. All delegations previously made are superseded.

(b) No delegation of authority by the Administrator or other person

shall preclude the Administrator or other person from exercising any of

the authority so delegated.

Sec. 1700.41 Persons serving in acting capacities.

Incumbents delegated authority in subparts D through L of this part

are authorized to designate a person to act for them as necessary,

except that a Regional Director or the Director, Power Supply Division

may not redelegate authority to approve loans, loan guarantees or lien

accommodations, and related actions as set forth in Secs. 1700.124(a),

1700.127(a) and 1700.145(a). If an incumbent of a position to whom

delegations are made in subparts D through L of this part is absent or

is unable to carry out such delegations, the person designated

authority to act for the incumbent and exercise the authority conferred

by such delegations. Such designations shall be in accordance with any

instruction issued by the incumbent's supervisor.

Sec. 1700.42 Persons serving as acting Administrator.

The following persons are authorized, in descending order, to act

for the Administrator only in his or her absence, sickness,

resignation, or death: Deputy Administrator, Assistant Administrator--

Electric, Assistant Administrator--Telephone, Assistant Administrator--

Economic Development and Technical Services. That is, if the first

person on the list is also absent, sick, has resigned, or is dead, the

second person on the list is authorized to act for the Administrator

and so on down the list. Persons on this list may not redelegate the

authority to act for the Administrator. The Administrator may in his/

her discretion in writing, on a case-by-case basis, delegate authority

to act as Administrator in his/her absence outside of this specified

order.

Sec. 1700.43 Persons serving as acting Assistant Administrator.

(a) Electric and telephone programs. The Deputy Assistant

Administrator in each program is authorized to act for the respective

Assistant Administrator in the absence, sickness, resignation or death

of that Assistant Administrator. The Deputy Assistant Administrators

may not redelegate this authority.

(b) Assistant Administrator--Economic Development and Technical

Services. (1) The Directors of the Rural Development Assistance Staff,

Borrower Accounting Division and the Program Support Staff are

authorized to act for the Assistant Administrator--Economic Development

and Technical Services in his or her absence according to the following

schedule:

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Director of Months

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Rural Development Assistance Staff. January, April, July, October.

Borrowers Accounting Division...... February, May, August, November.

Program Support Staff.............. March, June, September, December.

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(2) If a particular Director is absent, sick, has resigned or is

dead during a scheduled month, the delegation will revolve back to the

preceding month. These Directors may not redelegate this authority.

Sec. 1700.44 Contracts approved on behalf of the Administrator.

(a) Nonstandard contracts. Prior to the approval or the execution

of the following documents, the Office of the General Counsel (OGC)

shall comment as to any legal matters concerning such nonstandard

contracts:

(1) Contracts for engineering services, architectural services,

construction, and power supply that include a substantive deviation

from the standard form contract approved by OGC; and

(2) Other documents involving legal matters of concern to the

approving official.

(b) Signature. All contract approvals shall be signed:

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DEPARTMENT OF AGRICULTURE

(Name and Title)

For the Administrator

Secs. 1700.45-1700.59 [Reserved]

Subpart E--Delegations of Authority; Agency Issuances and Certain

Correspondence

Sec. 1700.60 Agency issuances.

Except as may be specifically delegated from time to time to the

Deputy Administrator, or others, all authority is reserved by the

Administrator to approve and issue regulations and other information

published in the Federal Register, bulletins, informational

publications, staff instructions concerning Agency administrative

matters and those affecting more than one program, and unnumbered

memoranda (mailings to borrowers in more than one program and all REA

staff). Signature authority is also reserved by the Administrator for

written responses to Members of Congress, Governors, State Legislators,

Federal Agency heads or Cabinet officials, as well as other controlled

correspondence for Agency response. Additionally, signature authority

is reserved by the Administrator for Agency mass mailings which include

but are not limited to mailings to accountants, engineers, and

consultants.

Sec. 1700.61 Agency publications control officer.

The Deputy Administrator is designated the Agency Publications

Control Officer.

Secs. 1700.62-1700.69 [Reserved]

Subpart F--Delegations; Authorities Reserved by the Administrator

Sec. 1700.70 General.

Authority for all matters not specifically delegated in subparts D

through L of this part, or by other written delegation, is reserved to

the Administrator, including, without limitation, the following

authorities reserved in this subpart.

Sec. 1700.71 Rural economic development loan and grant and distance

learning and medical link grant programs.

Approval of the following:

(a) Applications for loans or grants when all conditions for such

approval have been met.

(b) All zero-interest loans and grants.

or in the amount of applications selected and loans or grants approved.

(d) Extension of principal and interest repayments for rural

development purposes.

Sec. 1700.72 Electric program.

(a) Approval of the following loans, loan guarantees, lien

accommodations or subordinations:

(1) All discretionary hardship loans.

(2) All insured loans, loan guarantees, and lien accommodations or

subordinations to finance operating costs.

(3) All loans, loan guarantees, and lien accommodations or

subordinations of more than $15,000,000 for distribution and power

supply borrowers.

(4) All loans, loan guarantees, and lien accommodations or

subordinations for distribution borrowers that are members of a power

supply borrower that is in default of its obligations to the Government

or that is currently assigned to the Financial Services Staff, unless

otherwise determined by the Administrator.

(5) All insured loans, loan guarantees, and lien accommodations or

subordinations that require an Environmental Impact Statement.

(6) All certifications and findings required by the RE Act or other

applicable laws and regulations, the placing and releasing of

conditions precedent to the advance of funds, and all mortgages, loan

contracts or other necessary documents relating to the authorities

reserved in paragraph (a) of this section.

(b) And execution of all loan contracts, mortgages or other

documents in connection with loans, loan guarantees and lien

accommodations approved by the Administrator.

loan guarantees:

(1) Rescission of loans or termination of loan guarantee

commitments when the amount of the rescission or termination is more

than $15,000,000.

(2) Requests to extend the time period for advancing loan funds if:

(i) The borrower is delinquent in payments on loans made or

guaranteed by REA or in litigation that may affect loan security; or

(ii) The request does not fully comply with the requirements

specified in applicable REA regulations.

(3) Extension of time of prepayment principal and interest pursuant

to Section 12 of the RE Act, for borrowers in default or currently

assigned to the Financial Services Staff.

(4) Agreements, plans, arrangements, recommendations to settle

debt, or other actions affecting a borrower's financial or other

obligations to the Government through the Administrator of REA for

loans, loan guarantees, or other financial obligations except as may be

specifically delegated to the Financial Services Staff.

(5) Loan budget adjustments (transfers or reclassifications) when

approval is for:

(i) Changes in generation facilities that are subject to a power

survey or certification by REA;

(ii) Any proposed change of more than $15,000,000;

(iii) Any proposed operating costs.

(d) Approval of the following for borrower facilities,

organization, operations, or corporate status:

(1) Agreements for the merger or consolidation of borrowers.

(2) Power surveys or certifications by REA involving changes in

generation facilities.

(3) Contracts for the acquisition of plant-in-place of more than

$15,000,000 and related financial transactions.

(4) Approval, in amounts of $25,000,000 or more, of:

(i) The use of general funds; or

(ii) Sales or transfers of property and related releases of lien.

(5) Equity development plans and amendments to equity development

plans submitted by borrowers:

(i) As part of an application for any loan and loan guarantee that

requires approval of the Administrator;

(ii) By any borrower whose equity as a percentage of total assets,

is less than 10 percent at the time the plan is submitted, or whose

equity is predicted to drop below 10 percent during the 10-year period

of the plan.

(6) Assumptions of debt.

Sec. 1700.73 Telephone program.

(a) Approval of the following loans, loan guarantees, lien

accommodations or subordinations:

(1) All loans, loan guarantees, and lien accommodations or

subordinations to finance operating costs.

(2) All loans, loan guarantees, or lien accommodations or

subordinations for more than $15,000,000.

(3) Loans and loan guarantees with acquisition costs for more than

$5,000,000.

(4) Loans and loan guarantees containing funds to refinance

outstanding debt amounts for more than $5,000,000.

(b) All loan contracts, mortgages and other documents to be

executed in connection with loans and loan guarantees approved by the

Administrator.

loan guarantees:

(1) Extension of time for payment of principal and interest

pursuant to Section 12 of the RE Act, for borrowers in default.

(2) Agreements, plans, arrangements, recommendations to settle

debt, or other actions affecting a borrower's financial or other

obligations to the Government acting through the Administrator of REA

for loans, loan guarantees or other financial obligations.

(3) Complete releases of lien and satisfaction when a borrower has

paid in full its indebtedness.

(4) Sales and transfers of property for more than $5,000,000 and

related releases of lien.

Secs. 1700.74-1700.89 [Reserved]

Subpart G--Delegations of Authority; Loan Review Committees

Sec. 1700.90 General.

To assist in carrying out the authorities which are reserved or

delegated in subparts D through L of this part, the roles of the

following committees in this subpart are recognized.

Sec. 1700.91 Senior loan review committee.

The Senior Loan Review Committee, appointed by the Administrator,

shall review and make recommendations to the Administrator on all

electric and telephone loans, loan guarantees, and lien accommodations

or subordinations whose approval has been reserved by the

Administrator. The committee shall be chaired by the Administrator and

include the Assistant Administrator--Electric (AAE), Assistant

Administrator--Telephone (AAT), and such other members as the

Administrator may appoint.

Sec. 1700.92 Assistant Administrator's loan committee.

Both the electric and telephone programs shall have Assistant

Administrator's Loan Committees (AALC), consisting of the Regional

Directors or Acting Regional Directors of the respective programs as

well as additional members appointed by the appropriate Assistant

Administrator. The AALC shall be chaired by either the appropriate

Assistant Administrator or Deputy Assistant Administrator. The AALC

shall meet as required to review, analyze, and concur in

recommendations for actions to be taken for all loan application

requests, loan guarantee applications, and lien accommodations or

subordinations. The recommending official may not vote.

(a) Assistant Administrators and Regional Directors may approve

loans, loan guarantees, or lien accommodations or subordinations under

Sec. 1700.124 or Sec. 1700.146 only after the AALC has concurred with

such actions.

(b) An Assistant Administrator may, in their sole discretion,

forward a recommendation for a loan, loan guarantee or other financing

action to the Senior Loan Committee for its consideration.

Sec. 1700.93 Rural economic development recommendation committee.

The Administrator may appoint a recommendation committee for the

purpose of reviewing loan and grant recommendations.

Secs. 1700.94-1700.99 [Reserved]

Subpart H--Delegations of Authority; Rural Economic Development,

Program Support, and Borrower Accounting Activities

Sec. 1700.100 General.

The following delegations of authority in this subpart are made by

the Administrator.

Sec. 1700.101 Deputy Administrator.

The Deputy Administrator in conformance with applicable regulations

and REA policy is hereby delegated authority to exercise all

authorities conferred upon other persons in Sec. 1700.102.

Sec. 1700.102 Assistant Administrator--Economic Development and

Technical Services.

The Assistant Administrator--Economic Development and Technical

Services in conformance with applicable regulations and REA policy is

delegated authority to exercise all authorities conferred upon others

in Secs. 1700.103 through 1700.109, approval of staff instructions

affecting only the Rural Development Program, and unnumbered memoranda

(mailings to two or more borrowers) sent to rural development borrowers

or grant recipients.

Sec. 1700.103 Director--Rural Development Assistance Staff.

The Director--Rural Development Assistance Staff in conformance

with applicable regulations and REA policy is delegated authority to

approve for the Rural Economic Development Loan and Grant Programs and

Distance Learning and Medical Link Grant Programs the following:

(a) Releases of loan and grant funds including the approval of all

agreements and documents between the REA borrower and the ultimate

recipient.

(b) Cancellation of applications that have not been selected for

approval by the Administrator.

(d) Extension of the time period for the REA borrower to meet the

prerequisites to the advance of funds and the period to disburse the

funds.

(e) In addition, all authorities conferred upon other persons in

Sec. 1700.104.

Sec. 1700.104 Chief, Financing Branch--Rural Development Assistance

Staff.

The Chief, Rural Development Assistance Staff--Financing Branch in

conformance with applicable regulations and REA policy is delegated

authority to approve and execute for the Rural Economic Development

Loan and Grant and Distance Learning and Medical Link Grant Programs

the following:

(a) Reports of vouchers released; and

(b) Notice to Financial Operations Division (FOD) authorizing the

advance or release of funds.

Sec. 1700.105 Director, Borrower Accounting Division.

The Director, Borrower Accounting Division in conformance with

applicable regulations and REA policy is delegated authority to:

(a) Approve a certified public accountant (CPA) for borrower audits

of its financial statements.

(b) Take actions concerning the selection or change of a borrower's

CPA (7 CFR 1773.4).

(OIG) for all borrower irregularities.

(d) In addition, execute all authorities conferred upon other

persons in Secs. 1700.106 through 1700.108.

Sec. 1700.106 Chief, Technical Accounting and Auditing Staff.

The Chief, Technical Accounting and Auditing Staff in conformance

with Federal regulations and REA policy is delegated authority to

approve or execute:

(a) Actions concerning accounting policies, procedures, standards,

interpretations of Financial Accounting Standards Board (FASB)

issuances or other technical accounting issues; and

(b) Actions concerning the application of generally accepted

auditing standards to borrowers' accounts.

Sec. 1700.107 Chiefs, Area Accounting Branches.

The Chiefs, Area Accounting Branches in conformance with Federal

regulations and REA policy are delegated authority to approve or

execute:

(a) Statement of condition of borrower's records; and

(b) In addition, all authorities conferred upon other persons in

Sec. 1700.108.

Sec. 1700.108 Field Accountants.

The Field Accountants in conformance with applicable regulations

and REA policy are delegated authority to approve or execute:

(a) Propriety of the disbursements of loan and equity funds as

required by loan contract provisions and REA policy.

(b) Adequacy of borrowers' accounting systems and related records.

Sec. 1700.109 Director--Program Support Staff.

The Director--Program Support Staff in conformance with applicable

regulations and REA policy is delegated authority to encumber loan

funds for REA and RTB loans.

Secs. 1700.110-1700.119 [Reserved]

Subpart I--Delegations of Authority; Electric Program

Sec. 1700.120 General.

The following delegations of authority are made by the

Administrator to the electric program.

Sec. 1700.121 Deputy Administrator.

The Deputy Administrator in conformance with applicable regulations

and REA policy is delegated authority to approve or execute for the

electric program:

(a) Agreements or contracts for management or operations services

between telephone and electric borrowers.

(b) Federal Register notices announcing the availability of final

Environmental Impact Statements and the approval of REA's final

Environmental Impact Statements as well as Findings of No Significant

Impact (FONSI).

Sec. 1700.122.

Sec. 1700.122 Assistant Administrator--Electric.

The Assistant Administrator--Electric in conformance with

applicable regulations and REA policy is delegated authority to approve

or execute for the electric program:

(a) Approval of the following loans and necessary documents, except

for those approvals reserved for the Administrator in Sec. 1700.72(a):

(1) Approval of loans of $15,000,000 or less for entities not

previously financed by REA.

(2) Loans, loan guarantees, and lien accommodations or

subordinations for distribution and power supply borrowers in amounts

from $10,000,000 to $15,000,000.

(b) The following actions for unpaid and outstanding loans:

(1) Rescission of loans or termination of loan guarantee

commitments when the amount of the rescission or termination is

$15,000,000 or less.

(2) Requests to extend the period for advancing loan funds in any

amount except for:

(i) Requests from borrowers that are delinquent in their loan

payments to REA or in payments guaranteed by REA or in litigation that

may affect loan security.

(ii) Requests that do not comply with the requirements specified in

applicable REA regulations.

(iii) Cases where the Administrator has further reserved this

authority.

(3) Extension of time for payment of principal and interest

pursuant to section 12 of the RE Act for other than Energy Conservation

Resources Loans, except for requests from borrowers in default or

currently assigned to FSS.

(4) Loan budget adjustments (transfers or reclassifications) except

when such adjustments would provide funds for:

(i) Changes in generation facilities that are subject to a power

survey certification.

(ii) Any proposed change for more than $15,000,000.

(iii) Any proposed operating costs.

(5) Imposition of and release of special controls on loan fund

advances when the borrower is delinquent in payments on REA loans or

guarantees by REA or the borrower is in litigation that may affect loan

security.

(6) Questions arising from the interpretations or clarifications of

the application of 7 CFR 1721.1 to individual borrower circumstances.

corporate status:

(1) Changes in transmission facilities not identified to REA at the

time of loan approval that are subject to a power survey or

certification by REA involving the use of construction or general funds

of $15,000,000 or less.

(2) Power survey or certification by REA involving changes in

transmission facilities.

(3) Contracts for the acquisition of plant-in-place of $15,000,000

or less and related financial transactions.

(4) Determination of the proper categorization of electric project

proposals for the purpose of environmental review.

(5) Execution of documents relating to inter-borrower assumption of

indebtedness.

(6) Approval in amounts of less than $25,000,000 of:

(i) The use of general funds; or

(ii) Sales or transfers of property and related releases of lien.

(7) Approval or disapproval of the selection of a manager or

attorney by an electric borrower.

(d) Memoranda to electric staff or to two or more electric

borrowers.

(e) Approval of staff instructions affecting only the Electric

Program.

(f) Waivers of borrower requirements pursuant to 7 CFR part 1710,

Subpart E--Power Requirements Studies.

(g) All authorities conferred upon other persons in Sec. 1700.123.

Sec. 1700.123 Deputy Assistant Administrator--Electric.

The Deputy Assistant Administrator--Electric in conformance with

applicable regulations and REA policy is delegated authority to approve

or execute for the electric program:

(a) Any contracts for the acquisition of plant-in-place for

$10,000,000 or less and related financial transactions.

(b) The following matters concerning borrowers' facilities,

organization or corporate structure:

(1) Changes in borrowers' corporate status.

(2) Power supply contracts and agreements including wholesale

power, fuel, interconnections and wheeling agreements, participation

agreements, lease agreements for facilities or properties, power sales

agreements with non-RE Act beneficiaries, and integrated transmission

agreements between REA borrowers and non-borrowers, any of which

require a construction expenditure of more than $10,000,000.

or make other cash distributions in the following cases: (1) Any

distribution borrower that does not meet the following conditions:

(i) The retirement will not reduce total equity to less than 25

percent of total assets and other debits;

(ii) The oldest capital credits outstanding before the retirement

are at least 10 years old where the retirement method is first-in,

first-out, or the retirement is not more than 7 percent of all

outstanding capital credits before the retirement where another method

of retirement, authorized by the bylaws, is used; and

(iii) TIER and DSC ratios exceed mortgage minimum, i.e., the

average of the highest two of the last 3 years exceeds 1.5 for TIER and

1.25 for DSC.

(2) Any power supply borrower.

(d) All authorities conferred upon other persons in Secs. 1700.124

and 1700.131.

Sec. 1700.124 Regional Directors.

Regional Directors in conformance with applicable regulations and

REA policy are delegated authority to approve or execute for the

electric program's distribution borrowers:

(a) The following loans, loan guarantees, lien accommodations, and

documents:

(1) Insured loans, loan guarantees, and lien accommodations or

subordinations in amounts of less than $10,000,000, except for those

approvals reserved for the Administrator in Sec. 1700.72(a), or those

reserved for the Assistant Administrator--Electric under

Sec. 1700.122(a).

(2) All certifications and findings required by the RE Act or other

applicable laws and regulations, the imposing and releasing of

conditions precedent to the advance of loan funds, and all mortgages,

loan contracts or other documents relating to the delegations set forth

in paragraph (a)(1) of this section.

(b) The following matters for unpaid and outstanding loans:

(1) Rescission of loans or termination of loan guarantee

commitments when the amount of the rescission or termination is

$10,000,000 or less, except for discretionary or operating loans.

(2) Requests to extend the period for advancing loan funds when the

amount of unadvanced loan funds is $10,000,000 or less, except for:

(i) Requests from borrowers that are delinquent in their loan

payments to REA or in loans guaranteed by REA or in litigation that may

affect loan security.

(ii) Requests that do not fully comply with the requirements

specified in REA regulations.

(iii) Cases where the Administrator has further reserved this

authority.

(3) Basis date agreements for all approved requests to extend the

period for advancing loan funds.

(4) Principal deferments under Section 12 of the RE Act for Energy

Resource Conservation Loans and Rural Economic Development Investments.

(5) Loan budget adjustments (reclassifications or transfers) except

when such adjustments would provide funds for:

(i) Changes in generation and transmission facilities that are

subject to a power survey or certification by REA.

(ii) Any change exceeding $10,000,000.

(iii) Any operating costs.

(6) Advance of loan funds under ``stop orders'' and ``special

conditional agreements'' when the conditions have been met, except when

the borrower is delinquent in its loan payments to REA, or its loans

guaranteed by REA, or when the borrower is in litigation which may

affect loan security or the Office of the Administrator has reserved

this authority.

(7) Imposition of special controls on the further advance of loan

funds when it has been determined that loan feasibility may be

jeopardized.

(8) Complete releases of lien and satisfaction in cases where a

borrower has repaid its indebtedness in full.

(9) Approval of prepayments in accordance with 7 CFR part 1786 and

all related documents.

corporate status:

(1) Agreements between electric borrowers for the operation of

facilities.

(2) Management and operating agreements between electric borrowers

and subsidiary organizations engaged in rural development activities.

(3) Sales and leases of borrowers' capital assets involving

transactions in amounts of $5,000,000 or less and the related releases

of lien.

(4) Use of general funds by a borrower for plant additions in the

amount of $5,000,000 or less, except for facilities subject to power

supply surveys or certification by REA.

(5) Annual review of loan security of borrowers.

(6) Action concerning certain retirements of patronage capital and

other cash distributions which meet the following conditions:

(i) The retirement will not reduce total equity to less than 25

percent of total assets and other debits;

(ii) The oldest capital credits outstanding before the retirement

are at least 10 years old where the retirement method is first-in,

first-out, or the retirement is not more than 7 percent of all

outstanding capital credits before the retirement where another method

of retirement, authorized by the bylaws, is used; and

(iii) TIER and DSC ratios exceed mortgage minimum, i.e., the

average of the highest two of the last 3 years exceeds 1.5 for TIER and

1.25 for DSC.

(7) Approval as a majority note holder of employment contracts

between a borrower and its general manager.

(8) Waiver of specified defects in title to property obtained by

borrowers.

(9) All equity development plans and amendments to equity

development plans except those requiring approval of the Administrator.

(10) Any contracts for the acquisition of plant-in-place of

$5,000,000 or less and related financial transactions.

(d) Letters certifying borrowing eligibility for non-borrower

electric cooperatives seeking financing from the Bank for Cooperatives.

(e) In addition, all authorities conferred upon other persons in

Secs. 1700.125, 1700.126 and 1700.130.

Sec. 1700.125 Chiefs, Regional Engineering Branches.

The Chiefs, Regional Engineering Branches in conformance with

applicable regulations and REA policy are delegated authority to

approve or execute for the electric program with respect to

distribution and transmission facilities for distribution borrowers:

(a) The following matters concerning unpaid and outstanding loans

and loan guarantees:

(1) Financial requirements and expenditure statements when all

conditions precedent to the advance of loan funds have been met, no

litigation is pending pertaining to the loan or loan guarantee, the

borrower is not delinquent in its loan payments to REA or in loans

guaranteed by REA, and the Office of the Administrator has not reserved

this authority.

(2) Report of vouchers released.

(3) Concurrent loan fund requisitions.

(b) The following matters concerning technical specifications, and

borrower facilities and organization, except for matters concerning

generation facilities:

(1) Selection by a borrower of an architect; plans and

specifications, work orders, and contracts for architectural services

for the construction of headquarters, garage, and warehouse facilities

requiring REA approval, and final inventory documents and payments to

contractors and architects.

(2) Selection by a borrower of an engineer and contracts for

engineering services in cases requiring REA approval.

(3) Contracts for construction and right-of-way clearing and for

the purchase of substation sites and Headquarters facility sites with

clear title and special types of equipment requiring REA approval.

(4) Final inventory documents and payments to contractors and

engineers.

(5) Use of nonstandard drawings, materials, and equipment.

(6) Technical engineering studies for transmission, load

management, microwave, Supervisory Control and Data Acquisition (SCADA)

and other facilities requiring REA approval.

(7) Borrowers' selection of a method of construction.

(8) Plans and specifications for construction, preliminary design

data and plans, and profile sheets.

(9) Negotiation in lieu of competitive bidding of borrowers'

contracts.

(10) Award of contracts for construction of purchase of material

and equipment with fewer than three bids.

(11) Long-range engineering plans.

(12) Borrowers' environmental reports.

(13) Amendments to all types of power supply contracts or

agreements including extensions of time to existing contracts and

superseding contracts with no significant changes; the addition of new

delivery points; and modification of existing delivery points between

distribution borrowers and non-REA borrower power suppliers, except

where facilities are subject to a power survey or certification by REA.

(14) Final statements of engineering fees requiring REA approval,

except for generation facilities.

pertaining to distribution and transmission conferred upon other

persons in Sec. 1700.130.

Sec. 1700.126 Chiefs, Area Operations Branches.

The Chiefs, Area Operations Branches in conformance with applicable

regulations and REA policy are delegated authority to approve or

execute for the electric program's distribution borrowers:

(a) The following matters with unpaid and outstanding distribution

loans.

(1) Affidavits, certificates, filings, and confirmation statements

with respect to the recording, filing or renewing of security

instruments, including financing statements under the Uniform

Commercial Code of the applicable state.

(2) Municipal and county franchises, licenses, ordinances, and

permits to construct or operate facilities obtained by borrowers as

required by its security instruments.

(3) Notice of clearance of REA loan documents.

(b) Matters concerning borrower facilities, organization, or

corporate status:

(1) Sales and leases of borrower's capital assets involving

transactions in amounts of $500,000 or less, except for facilities

subject to power supply surveys or certification by REA.

(2) Partial releases of lien, associated with sales of a borrower's

capital assets, involving transactions in amounts of $500,000 or less.

(3) Approval of large retail power contracts which have not been

delegated to the General Field Representatives--Electric.

Sec. 1700.127 Director--Power Supply Division.

The Director--Power Supply Division in conformance with applicable

Regulations and REA policy is delegated authority to approve or execute

for the electric program's power supply borrowers:

(a) Approval of the following loans, loan guarantees, and loan

documents:

(1) Approval of insured loans, loan guarantees, and lien

accommodations or subordinations in amounts of less than $10,000,000

for power supply borrowers, except for those approvals reserved for the

Administrator in Sec. 1700.72(a).

(2) All certifications and findings required by the RE Act or other

applicable laws and regulations, the placing and releasing of

conditions precedent to the advance of funds, and all mortgages, loan

contracts or other documents relating to the delegations set forth in

paragraph (a)(1) of this section.

(b) The following matters for unpaid and outstanding loans:

(1) Rescission of loans or termination of loan guarantee

commitments when the amount of the rescission or termination is

$10,000,000 or less, except for discretionary or operating loans.

(2) Requests to extend the period for advancing loan funds when the

amount of unadvanced loan funds is $10,000,000 or less, except for:

(i) Requests from borrowers that are delinquent in their loan

payments to REA, loans guaranteed by REA or in litigation that may

affect loan security.

(ii) Requests that do not fully comply with the requirements

specified in REA regulations.

(iii) Cases where the Administrator has further reserved this

authority.

(3) Execution of basis date agreements for all approved requests to

extend the period for advancing loan funds.

(4) Loan budget adjustments (reclassifications or transfers) except

when such adjustments would provide funds for:

(i) Changes in generation and transmission facilities that are

subject to a power survey or certification by REA.

(ii) Any proposed change for more than $10,000,000.

(iii) Any proposed operating costs.

(5) Advance of loan funds under ``stop orders'' and ``special

conditional agreements'' when the conditions have been met, except when

the borrower is delinquent in its loan payments to REA, loan guaranteed

by REA or when the borrower is in litigation which may affect loan

security or the Administrator has reserved this authority.

(6) Imposition of special controls on the advance of loan funds

when it has been determined that loan feasibility may be jeopardized.

(7) Approval of prepayments in accordance with 7 CFR part 1786 and

all related documents.

(8) Complete releases of lien when a borrower has paid in full its

indebtedness.

(9) Approval of mortgages for refinancing transactions, regardless

of amount.

corporate status:

(1) Agreements between electric borrowers for operation of

facilities.

(2) Management and operating agreements between electric borrowers

and subsidiary organizations engaged in rural development activities.

(3) Sales and leases of borrowers' capital assets involving

transactions in amounts of $10,000,000 or less and the related releases

of lien.

(4) Use of general funds by a borrower for plant additions in the

amount of $10,000,000 or less, except for facilities subject to power

supply surveys or certification by REA.

(5) Annual review of loan security of power supply borrowers.

(6) Approval as a majority noteholder of employment contracts

between a borrower and its general manager.

(7) Wholesale power electric rates in connection with power supply

contracts.

(8) Waiver of specified defects in title to property obtained by

power supply borrowers.

(9) Interconnection Agreements, Wheeling Agreements, non firm Power

Sales or Purchase Agreements requiring a construction expenditure of

$10,000,000 or less.

(10) Firm Power Sale or Purchase Agreements with a duration of 3

years or less, which require a construction expenditure of $10,000,000

or less.

(11) Participation agreements with other utilities on jointly owned

facilities for new transmission, subtransmission or distribution

facilities requiring an expenditure of $10,000,000 or less.

(12) Participation agreements with other utilities on jointly owned

facilities for generation modifications to existing plant requiring an

expenditure of $10,000,000 or less.

(13) Any contracts for the acquisition of plant-in-place of

$5,000,000 or less and related financial transactions.

(d) In addition, all authorities conferred upon other persons in

Secs. 1700.128 and 1700.129.

Sec. 1700.128 Chief, Operations Branch, Power Supply Division.

The Chief, Operations Branch, Power Supply Division in conformance

with applicable Regulations and REA policy is delegated authority to

approve or execute for the electric program:

(a) The following matters dealing with outstanding power supply

loans.

(1) Affidavits, certificates, filings, and continuation statements

with respect to the recording, filing or renewing of mortgages and

deeds of trust, including financing statements under the Uniform

Commercial Code of the applicable state.

(2) Municipal and county franchises, licenses, ordinances, and

permits to construct or operate facilities obtained by borrowers as

required by the mortgage.

(3) Notice of Clearance of REA loan documents.

(4) Approval of large retail power contracts.

(5) Sales, transfers, and partial releases of liens involving sales

of borrowers' capital assets with a value of $500,000 or less.

(b) The following matters concerning unpaid and outstanding loans:

(1) Financial requirements and expenditure statements when all

conditions precedent to the advance of loan funds have been met, no

litigation is pending pertaining to the loan, the borrower is not

delinquent in its loan payments to REA, loans guaranteed by REA and the

Administrator has not reserved this authority.

(2) Report of vouchers released.

(3) Concurrent loan fund requisitions.

Sec. 1700.129 Chiefs, Power Engineering Branches, Power Supply

Division.

The Chiefs, Power Engineering Branches, Power Supply Division in

conformance with applicable Regulations and REA policy are delegated

authority to approve or execute for the electric program for electric

power supply borrowers:

(a) The following matters concerning technical specifications, and

borrower facilities and organizational issues for power supply

borrowers:

(1) Selection by a borrower of an engineer or architect; plans and

specifications, work orders, preliminary design data, plans and profile

sheets, and contracts for architectural and all engineering services

for facilities requiring REA approval, and final inventory documents

and payments to contractors and architects.

(2) Borrowers' selection of method of construction.

(3) Final statements of engineering fees.

(4) Purchase of generating plant sites.

(5) Technical engineering studies for generation facilities.

(6) Contracts for the construction and purchase of materials and

equipment for generation and transmission facilities.

(7) Use of nonstandard specifications, drawings, materials and

equipment.

(8) Negotiation in lieu of competitive bidding of borrowers'

contracts.

(9) Award of contracts for construction or purchase of materials

and equipment with fewer than three bids.

(10) Amendments to power supply contracts or agreements including

extensions of time to existing contracts; the addition of new delivery

points; and modification of existing delivery points, except where

facilities are subject to a power survey or certification by REA.

(11) Contracts for construction and right-of-way clearing and for

the purchase of substation sites with clear title and special types of

equipment requiring REA approval.

(12) Long-range engineering plans.

(13) Borrower environmental reports.

(14) Interchange agreements and similar agreements where no

construction is required.

(15) Interconnection agreements where no construction is required.

(16) Construction Work Plan (CWP) approval for G&T borrowers

(b) The following matters pertaining to the generation facilities

of distribution borrowers:

(1) Selection by a borrower of an engineer or architect; plans and

specifications, work orders, preliminary design data, plans, and

contracts for architectural and all engineering services for facilities

requiring REA approval, and final inventory documents and payments to

contractors and architects.

(2) Borrowers' selection of method of construction.

(3) Final statements of engineering fees.

(4) Purchase of generating plant sites.

(5) Technical engineering studies for generation facilities.

(6) Contracts for the construction and purchase of materials and

equipment for generation facilities.

(7) Use of nonstandard specifications, drawings, materials and

equipment.

(8) Negotiation in lieu of competitive bidding of borrowers'

contracts.

(9) Award of contracts for construction or purchase of materials

and equipment with fewer than three bids.

(10) The borrower's generation portion of the CWP.

Sec. 1700.130 General Field Representatives--Electric.

The General Field Representatives--Electric in conformance with

applicable regulations and REA policy are delegated authority to

approve or execute for the electric program:

(a) Cost estimates and facilities for distribution borrowers' large

power applications.

(b) Use of armless or narrow profile construction for distribution

in scenic areas or where right-of-way is restricted.

contract construction.

(d) Power requirements and irrigation studies for distribution

borrowers:

(1) Without generation facilities;

(2) With an ownership or lease interest in REA financed generation

facilities of less than 40 MW nameplate rating as set forth in ``REA

Financed Generating Plants,'' Information Publication (IP) 200-2, or

its equivalent. This publication is available from Publications and

Directives Management Branch, Administrative Services Division, Rural

Electrification Administration, room 0180, South Building, U.S.

Department of Agriculture, Washington, DC 20250-1500;

(3) With an ownership or lease interest in REA financed generation

facilities of 40 MW or more, provided the borrower has not received REA

financial assistance for generation capacity of 40 MW or more within 15

years of the borrower's request for REA approval of its Power

Requirements Study; or

(4) That are members of a power supply borrower when the member

study is not prepared as part of the power supply borrower's Power

Requirements Study.

(e) Amendments to or revisions of previously approved power

requirements or irrigation studies for distribution borrowers which are

members of a power supply borrower when the amendment or revision is

for support of a new loan application to be submitted by the member

prior to REA's approval of a new power-supply Power Requirements Study.

(f) Distribution facilities in construction work plans including

amendments and voltage drop, sectionalizing and power factor studies

solely for distribution borrowers.

(g) Long-range financial forecasts prepared for distribution

borrowers.

(h) Approval, for distribution borrowers, of large retail power

contracts for which the borrower's investment in plant facilities does

not exceed 10 percent of total utility plant except for distribution

borrowers which are members of an REA financed power supply borrower

which is in default under its loan repayments or whose debt has been

restructured.

Sec. 1700.131 Director, Electric Staff Division.

The Director, Electric Staff Division in conformance with

applicable regulations and REA policy is delegated authority to approve

the following:

(a) Power Requirements Studies for:

(1) All power supply borrowers.

(2) All members of a power supply borrower when the members'

studies were prepared as part of the power supply borrower's Power

Requirements Study.

(3) Distribution borrowers with an ownership or lease interest in

generating facilities of 40 MW or more nameplate rating as set forth in

REA Financed Generating Plants (IP 200-2), or its equivalent, provided

the borrower has received REA financial assistance for generating

capacity of 40 MW or more within 15 years of the borrower's request for

REA approval of its Power Requirements Study.

(b) Approval of Integrated Resource Plans for power supply and

distribution systems and Demand Side Management plans for distribution

systems.

Sec. 1700.132 Technical Standards Committees ``A'' and ``B''--

Electric.

The Technical Standards Committees ``A'' and ``B''--Electric in

conformance with applicable regulations and REA policy are delegated

authority to approve for the electric program:

(a) Technical Standards Committee ``A''--Electric accepts or

rejects all proposals of standard specifications, drawings, material

and equipment submitted for acceptance for use in REA financed electric

systems.

(b) Technical Standards Committee ``B''--Electric reviews and makes

a final decision on cases referred to it by either Committee A or by

appeal from a sponsor from an adverse decision made by Committee A.

Secs. 1700.133-1700.139 [Reserved]

Subpart J--Delegations of Authority; Telephone Program

Sec. 1700.140 General.

The delegations in this subpart relating to the REA telephone

program also apply to the Rural Telephone Bank (RTB).

Sec. 1700.141 General delegations.

The following delegations of authority for the telephone program in

this subpart are made by the Administrator.

Sec. 1700.142 Deputy Administrator.

The Deputy Administrator in conformance with applicable regulations

and REA policy is delegated authority to approve or execute for the

telephone program:

(a) Agreements or contracts covering management or operations

services between telephone and electric borrowers.

(b) Federal Register notices announcing the availability of final

Environmental Impact Statements and the approval of REA's final

Environmental Impact Statements as well as Findings of No Significant

Impact (FONSI).

Sec. 1700.143.

Sec. 1700.143 Assistant Administrator--Telephone.

The Assistant Administrator--Telephone in conformance with

applicable regulations and REA policy is delegated authority to approve

or execute for the telephone program:

(a) Loans, loan guarantees and lien accommodations or

subordinations of between $7,500,000 and $15,000,000 except for those

reserved for the Administrator in Sec. 1700.73(a).

(b) Loans and loan guarantees with acquisition costs between

$2,000,000 and $5,000,000.

(d) Approval of the following matters concerning unpaid and

outstanding loans:

(1) Basis date agreements or agreements for extension of advances

and related recommendations;

(2) Budget adjustments for loans made by the Administrator and loan

budget adjustments amounting to more than $2,000,000.

(e) Approval of the following concerning borrower facilities,

organization or corporate status:

(1) Field trial installations of telephone materials and equipment

involving more than $250,000;

(2) Approval of the purchase price of properties to be acquired by

telephone borrowers when the purchase price exceeds REA approved

appraisal value;

(3) Contracts between $2,000,000 and $5,000,000 for acquisition by

telephone borrowers of existing facilities in place;

(4) Approval of sales of property and related partial releases of

lien in amounts greater than $500,000 up to $5,000,000;

(5) Approval of the investment in an affiliate which exceeds the

allowable distribution level of more than $50,000;

(6) Action concerning disapproval of the selection of a manager or

an attorney by a telephone borrower;

(7) Agreements for the merger or consolidation of REA telephone

borrowers; and

(8) Waiver of mortgage provisions for payments of dividends or

other cash distributions, where such excess payments or distributions

exceed $50,000 in any year.

(f) Memoranda to telephone staff or to two or more telephone

borrowers.

(g) Reports and invoices for more than $100,000 under contracts

covering research services performed for REA in connection with the

telephone program.

(h) Approval of staff instructions affecting only the Telephone

Program.

(i) All authorities conferred upon other persons in Sec. 1700.144.

Sec. 1700.144 Deputy Assistant Administrator--Telephone.

The Deputy Assistant Administrator--Telephone in conformance with

applicable regulations and REA policy is delegated authority to approve

or execute for the telephone program:

(a) Revisions of the borrower's capital structure by amendment to

its charter or bylaws or by issuance of additional shares of stock.

(b) In addition, all authorities conferred upon other persons in

Secs. 1700.145 and 1700.149.

Sec. 1700.145 Regional Directors.

The Regional Directors in conformance with applicable regulations

and REA policy are delegated authority to approve or execute for the

telephone program:

(a) The following loans, loan guarantees, and lien accommodations

or subordinations except for those approvals reserved by the

Administrator in Sec. 1700.73(a):

(1) Loans, loan guarantees and lien accommodations or

subordinations of $7,500,000 or less.

(2) Loans and loan guarantees with acquisition costs of less than

$2,000,000.

(3) Loans and loan guarantees containing refinancing for less than

$2,000,000.

(b) The following loan documents and related actions:

(1) Interim financing requests.

(2) Special loan contract conditions, except for changes in such

conditions for loans made by the Administrator or the Assistant

Administrator.

(3) Waivers of contract conditions for release of funds.

(4) Loan designs.

(5) Characteristics letters to loan applicants setting forth loan

requirements proposed for inclusion in pending loan recommendations.

(6) Loan contracts and security instruments, except for loans made

by the Administrator.

(1) Telephone loan fund releases.

(2) Telephone loan rescissions.

(3) Loan budget adjustments, except for:

(i) Loans approved by the Administrator.

(ii) Adjustments greater than $2,000,000.

(4) The placement of special controls on the advance of loan funds

when it has been determined that loan security may be affected, except

when the Administrator has further reserved this authority.

(5) Advance of loan funds under ``special conditional agreements''

and special controls when the conditions have been met, except when the

Administrator has reserved this authority.

(6) Lien accommodations or subordinations granted to other parties

by REA or the RTB for amounts of less than $7,500,000.

(7) Principal deferments under Section 12 of the RE Act for Rural

Economic Development Investments.

(d) The following matters concerning borrower facilities,

organization, and corporate status:

(1) Increases in salaries and other compensations to be paid to

borrowers' officers, directors and managers when REA approval is

required under the mortgage.

(2) Borrowers' requests to waive competitive bidding procedures.

(3) Award of contracts (bid approval) for construction and central

office equipment.

(4) Selection by telephone borrowers of force account engineering

and construction.

(5) Waiver of specified special defects in title and rights-of-way.

(6) Field trial installations of telephone materials and equipment

involving $250,000 or less, jointly with Director, Telecommunications

Standards Division (TSD).

(7) Waiver of mortgage provisions relating to a borrower's payment

of dividends or other cash distributions when such excess payments or

distributions do not exceed $50,000 in any year.

(8) Approval of the investment in an affiliate of general funds

that is within the allowable distribution level.

(9) Approval of sales or transfers of property and related partial

releases of lien of more than $100,000 up to $500,000.

(10) Contracts for acquisition by telephone borrowers of existing

facilities in place of less than $2,000,000.

(11) Approval of employment contracts with the borrower's general

manager.

(12) Management and operating agreements. When the borrowers

involved are in more than one region, both directors must approve.

(13) Use of materials, equipment, and specifications not yet

accepted by REA.

(14) Letters certifying borrowing eligibility for non-borrower

telephone organizations seeking financing from the Bank for

Cooperatives.

(15) In addition, all authorities conferred upon other persons in

Secs. 1700.146, 1700.147, 1700.148.

Sec. 1700.146 Chiefs, Regional Engineering Branches--Telephone.

The Chiefs, Regional Engineering Branches--Telephone in conformance

with applicable regulations and REA policy are delegated authority to

approve or execute for the telephone program:

(a) The following matters for unpaid and outstanding loans:

(1) Financial Requirement Statements, REA Form 481; and

(2) Construction loan budget adjustments except those involving

change of loan budget purposes or new or revised administrative

findings.

(b) The following matters concerning technical specifications and

borrower facilities and organization:

(1) The selection by a borrower of an engineer or an architect and

contracts for engineering and architecture services;

(2) Final inventory documents and payments to contractors and

engineers;

(3) Statements of final engineering fees;

(4) Borrowers' proposals and cost estimates for force account

engineering and construction;

(5) Plans and specifications for central office equipment, radio,

and microwave equipment, garage and warehouse buildings and for

nonstandard central office equipment buildings;

(6) All major construction contracts. Major construction shall be

defined as any project estimated to cost more than $250,000 in total;

(7) Borrowers' proposals for purchase of additions and

modifications to central office equipment;

(8) Borrowers' Environmental Reports; and

(9) Borrowers' Outside Plant Layouts.

Sec. 1700.148.

Sec. 1700.147 Chiefs, Regional Operations Branches--Telephone.

The Chiefs, Regional Operations Branches--Telephone in conformance

with applicable regulations and REA policy are delegated authority to

approve or execute for the telephone program:

(a) The following matters concerning unpaid and outstanding loans:

(1) Affidavits, certificates, filings, and continuation statements

with respect to the recording, filing or renewing of mortgages and

deeds of trust, including financing statements under the Uniform

Commercial Code of the applicable state after clearance when necessary

by OGC;

(2) Municipal and county franchises obtained by borrowers from the

standpoint of acceptability for REA loans;

(3) State regulatory body orders and approvals from the standpoint

of acceptability for REA loans;

(4) Special legal fees to be paid by borrowers from loan funds; and

(5) Non-construction loan budget adjustment items, except those

involving legal or policy questions or new or revised administrative

findings.

(b) The following matters concerning borrower organization or

corporate or capital structure:

(1) Certificates regarding a borrower's incorporation and Articles

of Incorporation and Bylaws and changes in a borrower's corporate name;

(2) Forms of stock and equity certificates;

(3) Borrowers' cash sales of material and equipment, excluding

property in place, when approval is required and releases of lien and

all other documents relating to such sales;

(4) Borrowers' insurance and fidelity coverage;

(5) Borrowers' lease agreements except for agreements and contracts

between borrowers and affiliates;

(6) Approval, in amounts up to $100,000 of sales of property and

related partial releases of lien; and

(7) Purchase or lease of real estate by borrowers.

Sec. 1700.148.

Sec. 1700.148 General Field Representatives--Telephone.

The General Field Representatives--Telephone in conformance with

applicable regulations and REA policy are delegated authority to

approve or execute for the telephone program:

(a) Plans and specifications for REA standard Form 772, central

office buildings, or borrower specific standardized central office

building plans and specifications, repeaters, standardized lightwave

equipment, subscriber carrier and trunk carrier. Also, outside plant

plans and specifications that conform to an approved design.

(b) Outside plant contracts up to $250,000 and all other

construction and equipment contracts less than $100,000.

Sec. 1700.149 Director--Telecommunications Standards Division.

The Director--Telecommunications Standards Division in conformance

with applicable regulations and REA policy is delegated authority to

approve or execute for the telephone program:

(a) Reports and invoices up to $100,000 submitted under contracts

covering research services performed for REA in connection with the

telephone program.

(b) Field trial installations of telephone materials and equipment

involving $250,000 or less, jointly with the appropriate regional

director.

Sec. 1700.150 Technical Standards Committees ``A'' and ``B''--

Telephone.

The Technical Standards Committees ``A'' and ``B''--Telephone in

conformance with applicable regulations and REA policy are delegated

authority to approve for the telephone program:

(a) Technical Standards Committee ``A''--Telephone accepts or

rejects all proposals of standard specifications, drawings, material

and equipment submitted for acceptance for use on REA financed

telephone systems.

(b) Technical Standards Committee ``B''--Telephone reviews and

makes a final decision on cases referred to it by Committee ``A'' or by

appeal from a sponsor from an adverse decision of Committee ``A''.

Secs. 1700.151-1700.159 [Reserved]

Subpart K--Delegations of Authority; Financial Services

Sec. 1700.160 General.

The following delegations of authority in this subpart are made by

the Administrator to the Financial Services Staff for assigned loan

servicing projects.

Sec. 1700.161 Program Advisor, Financial Services Staff.

The Program Advisor, Financial Services Staff in conformance with

applicable regulations and REA policy is delegated authority to approve

and execute for the Financial Services Staff (FSS):

(a) Approval in amounts of less than $25,000,000 for:

(1) The use of general funds; or

(2) Sales and transfers of property and related releases of lien.

(b) Disapproval of the selection of a manager or attorney by a

borrower.

power, fuel, interconnections, wheeling, participation agreements,

lease agreements for facilities or properties, and power sales

agreements with non-RE Act beneficiaries.

(d) Wholesale power rates.

(e) Contracts for the construction and purchase of materials and

equipment.

(f) Retail rate contracts between borrowers and others relating to

large power installations.

(g) Additional authorities, as specifically delegated by the

Administrator, necessary to effectively resolve troubled borrower

situations.

(h) Authority to execute or testify, consistent with USDA

Departmental Regulations, on behalf of REA as follows:

(1) Affidavits and certificates concerning borrowers assigned to

FSS.

(2) Testify on behalf of the Agency before regulatory bodies or

courts on matters pertaining to borrowers assigned to the FSS.

Sec. 1700.162-1700.169 [Reserved]

Subpart L--Delegations of Authority; Financial Operations

Activities

Sec. 1700.170 General.

The following delegations of authority in this subpart are made by

the Administrator to the Financial Operations Division (FOD).

Sec. 1700.171 Deputy Administrator.

The Deputy Administrator in conformance with applicable regulations

and REA policy is delegated authority to approve or execute for FOD all

authorities conferred upon other persons in this subpart.

Sec. 1700.172 Director, Financial Operations Division.

The Director, Financial Operations Division in conformance with

applicable regulations and REA policy is delegated authority to approve

and execute for FOD:

(a) Standard Form 1151, Nonexpendable Transfer Authorization, for

the following activities related to loans made to the Administrator of

REA by the Secretary of Treasury under authority of section 3(a) and

304 of the RE Act:

(1) Advances of principal on notes executed by the Administrator;

and

(2) Payment of principal on loans made by the Administrator.

(b) Letters to the Federal Financing Bank (FFB) granting REA

approval to requests from borrowers, which are concurred in by the

applicable Regional Director in the Electric or Telephone program for:

(1) Extensions of short-term maturity dates of advances on the

specified maturity date;

(2) Prepayment of short-term maturities, including prepayment for

the purpose of extending to long-term prior to the scheduled maturity

date; and

(3) Prepayments of long-term maturities.

collateral pledged by borrowers as security for loans, as may be

necessary in connection with the return of such documents to borrowers,

due to the payment of the obligations in full or in order that the

borrowers may institute legal action thereon or in connection therewith

and the transmittal to the borrowers of such promissory notes or other

collateral pledged by the borrower.

(d) Cancellation or endorsement due to payment on the borrowers'

notes which have been paid in full or which are to be returned to

borrowers by reason of the cancellation of such notes resulting from

the receipt of REA of funding, renewal or substituted notes and

transmittal to the borrower.

(e) Actions concerning borrower loan accounting, computations,

procedures and policies.

(f) Liaison responsibility with the Federal Financing Bank, the

Department of Treasury.

(g) Liaison responsibility with General Accounting Office (GAO).

(h) In addition, all authorities conferred upon other persons in

Sec. 1700.173.

Sec. 1700.173 Chief, Loans Receivable Branch.

The Chief, Loans Receivable Branch in conformance with applicable

regulations and REA policy is delegated authority to approve and

execute for FOD:

(a) Preparation and forwarding of Energy Resource Conservation

(ERC) loan documents to the Office of the General Counsel (OGC).

(b) Preparation and forwarding of basis date agreements to OGC.

Sec. 1700.174--1700.189 [Reserved]

Dated: April 19, 1994.

Bob J. Nash,

Under Secretary, Small Community and Rural Development.

[FR Doc. 94-9967 Filed 4-25-94; 8:45 am]

BILLING CODE 3410-15-P

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.