This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

7517 

Vol. 77, No. 29 

Monday, February 13, 2012 

DEPARTMENT OF AGRICULTURE 

Rural Business-Cooperative Service 

Rural Utilities Service 

7 CFR Part 4279 

RIN 0570–AA87 

Definitions and Abbreviations 

AGENCY: Rural Business-Cooperative 

Service, Rural Utilities Service, USDA. 

ACTION: Direct final rule. 

SUMMARY: The Rural BusinessCooperative Service is amending its 

regulations for the Business and 

Industry Guaranteed Loan Program to 

clarify that the Agency guarantee does 

not cover default and penalty interest or 

late charges. The Agency’s regulations 

are currently silent on this issue. 

However, it has always been the 

Agency’s policy not to pay out 

additional cost for default interest, 

penalty interest, and late charges 

calculated and submitted on a final 

report of loss claim under the Loan Note 

Guarantee. The Agency does permit the 

lender to charge default interest with 

prior Agency approval. By defining 

‘‘interest’’ in the definition section of 

the regulation and clarifying the 

Agency’s policy as it relates to default 

interest, penalty interest, and late 

charge, this will avert any 

misunderstandings. 

DATES: This rule will become effective 

April 13, 2012 without further action 

unless the Agency receives written 

adverse comments or written notices of 

intent to submit adverse comments on 

or before March 14, 2012. If the Agency 

receives adverse comments or notices, 

the Agency will publish a timely 

document in the Federal Register 

withdrawing the amendment. 

Any adverse comments received will 

be considered under the proposed rule 

published in this edition of the Federal 

Register in the proposed rule section. A 

second public comment period will not 

be held. Written comments must be 

received by the Agency or carry a 

postmark or equivalent no later than 

March 14, 2012. 

ADDRESSES: You may submit adverse 

comments or notice of intent to submit 

adverse comments to this rule by any of 

the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Submit written comments via 

the U.S. Postal Service to the Branch 

Chief, Regulations and Paperwork 

Management Branch, U.S. Department 

of Agriculture, STOP 0742, 1400 

Independence Avenue SW., 

Washington, DC 20250–0742. 

• Hand Delivery/Courier: Submit 

written comments via Federal Express 

Mail or other courier service requiring a 

street address to the Branch Chief, 

Regulations and Paperwork 

Management Branch, U.S. Department 

of Agriculture, 300 7th Street SW., 7th 

Floor, Washington, DC 20024. 

All written comments will be 

available for public inspection during 

regular work hours at the 300 7th Street 

SW., 7th Floor address listed above. 

FOR FURTHER INFORMATION CONTACT: Mr. 

David Lewis, Rural Development, 

Business Programs, U.S. Department of 

Agriculture, 1400 Independence Avenue 

SW., Stop 3221, Washington, DC 20250– 

3221; email: david.lewis@wdc.usda.gov; 

telephone (202) 690–0797. 

SUPPLEMENTARY INFORMATION: 

Classification 

This rule has been determined to be 

not significant for purposes of Executive 

Order 12866 and has not been reviewed 

by the Office of Management and 

Budget (OMB). 

Programs Affected 

The Catalog of Federal Domestic 

Assistance Program number assigned to 

the Business and Industry Guaranteed 

Loan Program is 10.768. The Catalog of 

Federal Domestic Assistance Program 

number assigned to the Biorefinery 

Assistance is 10.865. The Catalog of 

Federal Domestic Assistance Program 

number assigned to the Rural Energy for 

America Program is 10.868. 

Environmental Impact Statement 

This document has been reviewed in 

accordance with 7 CFR part 1940, 

subpart G, ‘‘Environmental Program.’’ 

Rural Development has determined that 

this action does not constitute a major 

Federal action significantly affecting the 

quality of the human environment and, 

in accordance with the National 

Environmental Policy Act (NEPA) of 

1969, 42 U.S.C. 4321 et seq., an 

Environmental Impact Statement is not 

required. 

Executive Order 12372, 

Intergovernmental Consultation 

The program is subject to the 

provisions of Executive Order 12372, 

which requires intergovernmental 

consultation with State and local 

officials. Consultation will be completed 

at the time of the action performed. 

Executive Order 12988, Civil Justice 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. The Agency has determined 

that this rule meets the applicable 

standards provided in section 3 of the 

Executive Order. Additionally, (1) all 

State and local laws and regulations that 

are in conflict with this rule will be 

preempted; (2) no retroactive effect will 

be given to the rule; and (3) 

administrative appeal procedures, if 

any, must be exhausted before litigation 

against the Department or its Agencies 

may be initiated, in accordance with the 

regulations of the National Appeals 

Division of USDA at 7 CFR part 11. 

Executive Order 13132, Federalism 

The policies contained in this rule do 

not have any substantial direct effect on 

States, on the relationship between the 

National Government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government. Nor does this final 

rule impose substantial direct 

compliance costs on State and local 

Governments. Therefore, consultation 

with States is not required. 

Regulatory Flexibility Act Certification 

Under section 605(b) of the 

Regulatory Flexibility Act, 5 U.S.C. 

605(b), the Agency certifies that this 

rule will not have a significant 

economic impact on a substantial 

number of small entities. The Agency 

made this determination based on the 

fact that this regulation only impacts 

those who choose to participate in the 

program. Small entity applicants will 


erowe on DSK2VPTVN1PROD with RULES
7518 Federal Register / Vol. 77, No. 29 / Monday, February 13, 2012 / Rules and Regulations 

not be impacted to a greater extent than 

large entity applicants. 

Unfunded Mandates 

This rule contains no Federal 

mandates (under the regulatory 

provisions of Title II of the Unfunded 

Mandates Reform Act of 1995) for State, 

local, and tribal Governments or the 

private sector. Thus, this rule is not 

subject to the requirements of sections 

202 and 205 of the Unfunded Mandates 

Reform Act of 1995. 

Executive Order 13175, Consultation 

and Coordination With Indian Tribal 

Governments 

This executive order imposes 

requirements on Rural Development in 

the development of regulatory policies 

that have tribal implications or preempt 

tribal laws. Rural Development has 

determined that the final rule does not 

have a substantial direct effect on one or 

more Indian tribe(s) or on either the 

relationship or the distribution of 

powers and responsibilities between the 

Federal Government and Indian tribes. 

Thus, this final rule is not subject to the 

requirements of Executive Order 13175. 

If a tribe determines that this rule has 

implications of which Rural 

Development is not aware and would 

like to engage with Rural Development 

on this rule, please contact Rural 

Development’s Native American 

Coordinator at AIAN@wdc.usda.gov. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995, the information 

collection activities associated with this 

rule are covered under the Business and 

Industry Guaranteed Loan Program, 

OMB Number: 0570–0017. 

This rule contains no new reporting 

or recordkeeping burdens under OMB 

control number 0570–0017 that would 

require approval under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35). 

E-Government Act Compliance 

Rural Development is committed to 

complying with the E-Government Act, 

to promote the use of the Internet and 

other information technologies, to 

provide increased opportunities for 

citizens to access Government 

information and services electronically. 

I. Background 

The Agency reviewed 7 CFR 4279.2 

which is composed of two paragraphs, 

the first of which is pertinent. 

Section 4279.2(a) discusses the 

definitions, which has thirty-seven 

terms used in the Guaranteed 

Loanmaking. The definitions and 

abbreviations contained in § 4279.2 also 

apply to the Business and Industry 

Guaranteed Loan Servicing regulations 

and, unless otherwise noted, the 

Biorefinery Assistance Loan Program 

and the Rural Energy for America 

Program. Currently, the Agency 

regulations do not define or otherwise 

address ‘‘interest’’, ‘‘default interest’’, 

‘‘penalty interest’’, or ‘‘late charges’’. 

However, it is the Agency’s policy not 

to pay out additional cost for default 

interest, penalty interest, and late 

charges calculated and submitted on a 

final report of loss claim under the Loan 

Note Guarantee. However, lender’s 

Promissory Note may contain provisions 

for default or penalty interest, or late 

charges with prior Agency approval. 

II. Discussion of Change 

The Agency is revising § 4279.2(a), to 

address the situation discussed in the 

‘‘Background’’ section. Specifically, the 

Agency is adding a paragraph in 

§ 4279.2(a), after the term ‘‘Holder’’ and 

before the term ‘‘Interim Financing’’, 

which will define ‘‘Interest.’’ The 

change being made by this rule is to 

clarify that ‘‘interest’’ does not include 

default or penalty interest, or late fees. 

The lender may charge the borrower 

these fees with prior Agency approval. 

Accordingly, the Agency is making the 

changes in this direct final rule. 

List of Subjects in 7 CFR Part 4279 

Business and industry, Loan 

programs, Rural development 

assistance. 

For the reasons set forth in the 

preamble, chapter XLII, title 7, of the 

Code of Federal Regulations is amended 

as follows: 

CHAPTER XLII—RURAL BUSINESSCOOPERATIVE SERVICE AND RURAL 

UTILITIES SERVICE, DEPARTMENT OF 

AGRICULTURE 

PART 4279—GUARANTEED 

LOANMAKING 

■ 1. The authority citation for part 4279 

continues to read as follows: 

Authority: 5 U.S.C. 301; 7 U.S.C. 1932(a); 

and 7 U.S.C. 1989. 

Subpart A—General 

■ 2. Paragraph (a) of § 4279.2 is 

amended by adding a new definition of 

Interest, to read as follows: 

§ 4279.2 Definitions and abbreviations. 

* * * * * 

Interest. A fee paid by a borrower to 

the lender as a form of compensation for 

the use of money. When money is 

borrowed, interest is paid as a fee over 

a certain period of time (typically 

months or years) to the lender as a 

percentage of the principal amount 

owed. ‘‘Interest’’ does not include 

default or penalty, or late fees or 

charges. The lender may charge these 

fees and interest with prior Agency 

approval, but they are not covered by 

the Loan Note Guarantee. 

* * * * * 

Dated: February 2, 2012. 

Dallas Tonsager, 

Under Secretary, Rural Development. 

[FR Doc. 2012–3244 Filed 2–10–12; 8:45 am] 

BILLING CODE 3410–XY–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2006–25001; Directorate 

Identifier 2006–NM–079–AD; Amendment 

39–16937; AD 2012–02–14] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for all The 

Boeing Company Model 737–600, –700, 

–700C, –800, –900, and –900ER series 

airplanes. This AD was prompted by a 

report that the top 3 inches of the aero/ 

fire seals of the blocker doors on the 

thrust reverser torque boxes are not 

fireproof. This AD requires a one-time 

inspection to determine the part 

numbers of the aero/fire seals of the 

blocker doors on the thrust reverser 

torque boxes on the engines, and 

replacing affected aero/fire seals with 

new, improved aero/fire seals. We are 

issuing this AD to prevent a fire in the 

fan compartment (a fire zone) from 

migrating through the seal to a 

flammable fluid in the thrust reverser 

actuator compartment (a flammable 

fluid leakage zone), which could result 

in an uncontrolled fire. 

DATES: This AD is effective March 19, 

2012. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in the AD 

as of March 19, 2012. 

ADDRESSES: For service information 

identified in this AD, contact Boeing 

Commercial Airplanes, Attention: Data 

& Services Management, P.O. Box 3707, 

MC 2H–65, Seattle, Washington 98124– 


erowe on DSK2VPTVN1PROD with RULES