Notice of Request for Extension of Currently Approved Information Collection

DEPARTMENT OF AGRICULTURE

Farm Service Agency

Rural Housing Service

Rural Business-Cooperative Service

Notice of Request for Extension of Currently Approved Information

Collection

AGENCIES: Farm Service Agency, Rural Housing Service, and Rural

Business-Cooperative Service, USDA.

ACTION: Proposed Collection; comments request.

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

SUMMARY: In accordance with the Paperwork Reduction Act of 1995, this

notice announces the intent of the Farm Service Agency (FSA), Rural

Housing Service (RHS), and the Rural Business-Cooperative Service (RBS)

to request an extension of currently approved information collections

for four regulations and a form used in support of the FSA Farm Loan

Program (FLP) (formerly Farmer Programs of the Farmers Home

Administration (FmHA)), two regulations used in support of the RHS

Multi-family Housing (MFH) and Community Facilities (CF) loan programs,

and one regulation used in support of the RBS Direct Business and

Industry loan program. These rules do not involve the loans of the

Commodity Credit Corporation (CCC) administered by FSA or the Single

Family Housing (SFH) loans of RHS. This renewal does not involve any

revisions to the program rules.

DATES: Comments on this notice must be received on or before March 30,

1998 to be assured consideration.

FOR FURTHER INFORMATION CONTACT: For additional information contact

Phillip Elder, Senior Loan Officer, USDA, Farm Service Agency, Farm

Loan Programs, Loan Servicing Division, 1400 Independence Avenue, SW.,

STOP 0523, Washington, DC 20013-0523; Telephone (202) 690-4012;

Electronic mail: [email protected].

SUPPLEMENTARY INFORMATION:

Title: Form FmHA 1962-1, Agreement for the Use of Proceeds/Release

of Chattel Security.

OMB Control Number: 0560-0171.

Expiration Date of Approval: March 31, 1998.

Type of Request: Extension of Currently Approved Information

Collection.

Abstract: The collection of information on Form FmHA 1962-1 is

required by a consent decree executed in relation to Coleman V. Block,

663 F. Supp 1315 (D.N.D. 1987). The former Farmers Home Administration

(FmHA) agreed in the consent decree to approve a borrower's planned use

of proceeds from the disposition of their chattel security, record any

changes to planned use, and record the actual disposition of chattel

security for the year of operation. Also, this form is needed to

implement Section 335(f) of the Consolidated Farm and Rural Development

Act (Act) (7 U.S.C. 1985(f)), which requires release of normal income

security to pay essential household and farm operating expenses of the

borrower, until the Agency accelerates the loan. Form FmHA 1962-1

provides a uniform method for local Agency loan officers to approve

these actions.

Estimate of Burden: Public reporting burden for this collection of

information is estimated to average 20 minutes per response.

Respondents: Individuals or households, businesses or other for

profit and farms.

Estimated Number of Respondents: 56,075.

Estimated Number of Responses per Respondent: 1.

Estimated Total Annual Burden on Respondents: 18,505 hours.

Title: 7 CFR 1806-A, Real Property Insurance.

OMB Control Number: 0575-0087.

Expiration Date: March 31, 1998.

Type of Request: Extension of Currently Approved Information

Collection.

Abstract: This regulation is currently shared by FSA and the MFH

programs of RHS. This regulation governs the servicing of property

insurance on buildings and land securing the interest of RHS or FSA in

connection with an FSA FLP Loan or RHS MFH loan. This regulation does

not apply to the CF and SFH programs of RHS. The information

collections pertain primarily to the verification of insurance on

property securing Agency loans. This information collection is

submitted by FSA or RHS borrowers to Agency offices. It is necessary to

protect the government from losses due to weather, natural disasters,

or fire and ensure that the Act's loan making requirements of hazard

insurance are met by loan applicants. See Secs. 303(c), 312(c), and

321(b) of the Act.

Estimate of Burden: Public reporting burden for this collection of

information

[[Page 4216]]

is estimated to average 29 minutes per response.

Respondents: Individuals or households, businesses or other for

profit and farms.

Estimated Number of Respondents: 20,391.

Estimated Number of Responses per Respondent: 1.

Estimated Total Annual Burden on Respondents: 9,944 hours.

Title: 7 CFR 1951-L, Servicing Cases Where Unauthorized Loan or

Other Assistance Was Received.

OMB Control Number: 0560-0160.

Expiration Date: March 31, 1998.

Type of Request: Extension of Currently Approved Information

Collection.

Abstract: FSA encounters cases where unauthorized assistance was

received by a borrower. This assistance may be a loan where the

recipient did not meet the eligibility requirements set forth in

statute or program regulations, or both, or where the borrower

qualified for loan assistance but a lower subsidized interest rate was

charged on the loan, resulting in the borrower's receipt of

unauthorized interest subsidy benefits. The unauthorized assistance may

also be in the form of loan servicing where a borrower received an

excessive write-down or write-off of their debt. The information

collected under this regulation is provided on a voluntary basis by the

borrower, although failure to cooperate to correct loan accounts may

result in liquidation of the loan. The information to be collected will

primarily be financial data such as amount of income, farm operating

expenses, depreciation, crop yields, etc.

Estimate of Burden: Public reporting burden for this collection of

information is estimated to average 4 hours per response.

Respondents: Individuals or households, businesses or other for

profit and farms.

Estimated Number of Respondents: 105.

Estimated Number of Responses per Respondent: 1.

Estimated Total Annual Burden on Respondents: 420 hours.

Title: 7 CFR 1965-A, ``Servicing of Real Estate Security for Farmer

Program Loans and Certain Note-Only Cases.''

OMB Control Number: 0560-0158.

Expiration Date: March 31, 1998.

Type of Request: Extension of Currently Approved Information

Collection.

Abstract: This regulation promulgates provisions of sections 331

and 335 of the Act (7 U.S.C. Secs. 1981 and 1985). Section 331, of the

Act, in part, authorizes the Secretary of Agriculture to modify,

subordinate and release terms of security instruments, leases,

contracts, and agreements entered into by FSA. That section also

authorizes transfers of security property as the Secretary deems

necessary to carry out the purpose of the loan or protect the

Government's financial interest. Section 335 of the Act provides

servicing authority for real estate security; operation or lease of

realty, disposition of property; conveyance of real property interest

of the United States; easements; and condemnations. The information

collection required by this subpart relates to a program benefit

recipient or loan borrower requesting action on security which they

own, which was purchased with FSA loan funds, improved with FSA loan

funds or has otherwise been mortgaged to the Agency to secure a

government loan. The information to be collected will primarily be

financial data not already on file, such as borrower asset values.

Estimate of Burden: Public reporting burden for this collection of

information is estimated to average .42 hours per response.

Respondents: Individuals or households, businesses or other for

profit and farms.

Estimated Number of Respondents: 15,263.

Estimated Number of Responses per Respondent: 1.

Estimated Total Annual Burden on Respondents: 6,465 hours.

Title: 7 CFR part 1951, subpart F--Analyzing Credit Needs and

Graduation of Borrowers.

OMB Control Number: 0575-0093.

Expiration Date: March 31, 1998.

Type of Request: Extension of Currently Approved Information

Collection.

Abstract: This regulation is currently shared by FSA, RHS, and RBS.

Section 333 of the Act and Sec. 502 of the Housing Act of 1949, as

amended, require the Agencies to graduate their direct loan borrowers

to other credit when they are able to do so. Graduation is an integral

part of Agency lending, as Government loans are not meant to be

extended beyond a borrower's need for subsidized rates or non-market

terms. The notes, security instruments, or loan agreements of most

borrowers require borrowers to refinance their Agency loans when other

credit becomes available at reasonable rates and terms. If a borrower

finds other credit is not available at reasonable rates and terms, the

Agency will continue to review the borrower for possible graduation at

periodic intervals. Also, Sec. 333A(f) of the Act (7 U.S.C. 1983a(f))

requires the Agency to provide a financial prospectus to lenders who

may be interested in providing guaranteed and non-guaranteed credit to

the FSA's direct farm loan borrowers. The information to be collected

to carry out these mandates will primarily be financial data such as

amount of income, farm operating expenses, asset values, and

liabilities.

Estimate of Burden: Public reporting burden for this collection of

information is estimated to average 2.85 hours per response.

Respondents: Individuals or households, businesses or other for

profit and farms.

Estimated Number of Respondents: 69,781.

Estimated Number of Responses per Respondent: 1.

Estimated Total Annual Burden on Respondents: 199,020.

Title: 7 CFR part 1941, Subpart A--Operating Loan Policies,

Procedures and Authorizations.

OMB Control Number: 0560-0162.

Expiration Date: March 31, 1998.

Type of Request: Extension of Currently Approved Information

Collection.

Abstract: Section 311 of the Act (7 U.S.C. 1941) requires that an

applicant for an FSA farm operating loan be a citizen of the United

States, possess the legal capacity to incur the loan obligation, have

training and experience sufficient to assure reasonable prospects of

success in the proposed farm operation, be an operator of not larger

than a family farm, be unable to obtain sufficient credit elsewhere,

and not have received a direct operating loan in 6 or fewer years.

Section 373 of the Act also generally prohibits the Secretary from

making or guaranteeing a farm loan to a borrower who has received debt

forgiveness on such a loan. The Debt Collection Improvement Act (31

U.S.C. Sec. 3720B(a)) further generally precludes an agency from making

a loan to a borrower who to a person who is delinquent on any Federal

debt. Also, FSA loan approval officials must determine that adequate

security and repayment ability for the loan are available, and that

funds are used only for those purposes authorized by law. Reporting

requirements to ensure compliance with these eligibility requirements

are imposed on the public by regulations set out in 7 CFR part 1941,

subpart A.

Estimate of Burden: Public reporting burden for this collection of

information is estimated to average .21 hours per response.

Respondents: Individuals or households, businesses or other for

profit and farms.

[[Page 4217]]

Estimated Number of Respondents: 56,170.

Estimated Number of Responses per Respondent: 1.

Estimated Total Annual Burden on Respondents: 11,673 hours.

Comments

The Agencies are soliciting comments on the burden of all of the

above subparts regarding: (a) Whether the collection of information is

necessary for the proper performance of the functions of the agency,

including whether the information will have practical utility; (b) the

accuracy of the agency's estimate of burden including the validity of

the methodology and assumptions used; (c) ways to enhance the quality,

utility and clarity of the information to be collected; (d) ways to

minimize the burden of the collection of information on those who are

to respond, including through the use of appropriate automated,

electronic, mechanical, or other technological collection techniques or

other forms of information technology. These comments should be sent to

Phillip Elder, Senior Loan Officer, USDA, FSA, Farm Loan Programs, Loan

Servicing Division, 1400 Independence Avenue, SW., STOP 0523,

Washington, DC 20250-0523.

Copies of the information collections may be obtained from Mr.

Elder at the above address. Comments regarding paperwork burden will be

summarized and included in the request for OMB approval of the

information collection. All comments will also become a matter of

public record.

Signed in Washington, DC, on January 20, 1998.

Bruce R. Weber,

Acting Administrator, Farm Service Agency.

Jan E. Shadburn,

Administrator, Rural Housing Service.

Dayton J. Watkins,

Administrator, Rural Business--Cooperative Service.

[FR Doc. 98-2054 Filed 1-27-98; 8:45 am]

BILLING CODE 3410-XV-U