RUS Privatization Demonstration Prepayment Program for the State of Alaska

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1786

RIN 0572-AB27

RUS Privatization Demonstration Prepayment Program for the State

of Alaska

AGENCY: Rural Utilities Service, USDA.

ACTION: Final rule.

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

SUMMARY: The 1996 Farm Bill, signed into law on April 4, 1996, repealed

Section 311 of the Rural Electrification Act of 1936. Section 311

provided the legal authority for a privatization demonstration program

for the State of Alaska. Under that demonstration program, electric and

telecommunications borrowers in the state of Alaska could prepay

certain RUS loans on favorable terms. Borrowers who prepaid under this

demonstration program became ineligible for most types of loans from

RUS after the prepayment. Because the Farm Bill repealed the statutory

authority, regulations implementing this program have become obsolete.

Today's rule removes these obsolete regulations.

EFFECTIVE DATE: This rule is effective June 16, 1997.

FOR FURTHER INFORMATION CONTACT: Sue Arnold, Financial Analyst, U.S.

Department of Agriculture, Rural Utilities Service, Room 2230-S, 1400

Independence Avenue, SW., Stop 1522, Washington, DC 20250-1522.

Telephone: 202-720-0736. FAX: 202-720-4120. E-mail:

[email protected].

SUPPLEMENTARY INFORMATION: The Rural Utilities Service (RUS) is taking

this regulatory action as part of an ongoing project to eliminate

unnecessary regulations and improve those that remain in force. This

regulatory action has been determined not to be significant for the

purposes of Executive Order 12866, Regulatory Planning and Review, and,

therefore has not been reviewed by the Office of Management and Budget

(OMB).

The program described by this rule is listed in the Catalog of

Federal Domestic Assistance Programs under numbers 10.850, Rural

Electrification Loans and Loan Guarantees, 10.851 Rural Telephone Loans

and Loan Guarantees, and 10.852, Rural Telephone Bank Loans. This

catalog is available on a subscription basis from the Superintendent of

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

20402-9325.

Information Collection and Recordkeeping Requirements

This rule contains no information collection or recordkeeping

requirements.

Background

On October 30, 1986, an Act Making Continuing Appropriations for

Fiscal Year of 1987 and For Other Purposes (Pub.L. 99-591, 100 Stat.

3341-333) added a new section 311 (7 U.S.C. 940a) to the Rural

Electrification Act of 1936, as amended (7 U.S.C. 901 et seq.), (RE

Act). Section 311 established a privatization demonstration program

that allowed electric and telecommunications borrowers in the State of

Alaska to prepay, under favorable terms, certain loans made or

guaranteed by the Rural Electrification Administration (REA), the

predecessor to RUS. Borrowers who prepaid under this demonstration

program were required to prepay all outstanding loans made or

guaranteed under the RE Act, and, with a few exceptions, such borrowers

are ineligible for future loans or loan guarantees under the RE Act.

RUS rules implementing the Privatization Demonstration Program for

the State of Alaska were issued in 7 CFR 1786 subpart D.

On April 4, 1996, Section 780 of the Federal Agriculture

Improvement and Reform Act (Pub.L. 104-127) repealed Section 311. Since

RUS no longer has the statutory authority for the Privatization

Demonstration Program for the State of Alaska, today's rule removes the

now obsolete 7 CFR 1786 subpart D. Prepayment provisions established

elsewhere in 7 CFR part 1786, and in other RUS regulations are not

affected by today's amendment.

Because statutory authority for the Privatization Demonstration

Program for the State of Alaska has been repealed, no period of public

comment is needed for this conforming amendment to RUS regulations.

[[Page 32478]]

List of Subjects in 7 CFR Part 1786

Accounting, Administrative practice and procedure, Electric

utilities.

For the reasons set out in the preamble, and under the authority of

the Under Secretary for Rural Development, Title 7 of the Code of

Federal Regulations is amended as follows:

PART 1786--PREPAYMENT OF RUS GUARANTEED AND INSURED LOANS TO

ELECTRIC AND TELEPHONE BORROWERS

1. The authority citation for part 1786 continues to read as

follows:

Authority: 7 U.S.C. 901-950b; Title I, subtitle B, Pub.L. 99-

509; Pub.L. 101-624, 104 Stat. 4051; Pub.L. 103-354, 108 Stat. 3178

(7 U.S.C. 6941 et seq.), unless otherwise noted.

Subpart D 1786.75 through 1786.86 [Removed and Reserved]

2. Subpart D of Part 1786, consisting of sections 1786.75 through

1786.86, is removed and reserved.

Dated: June 9, 1997.

Jill Long Thompson,

Under Secretary, Rural Development.

[FR Doc. 97-15757 Filed 6-13-97; 8:45 am]

BILLING CODE 3410-15-P