Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Proposed Rules 17107

13. Settlement of Claim.

(a) We will determine your loss on a unit

basis. In the event you are unable to provide

acceptable production records:

(1) For any optional unit, we will combine

all optional units for which such production

records were not provided; or

(2) For any basic unit, we will allocate any

commingled production to such units in

proportion to our liability on the harvested

acreage for each unit.

(b) In the event of loss or damage covered

by this policy, we will settle your claim by:

(1) Multiplying the insured acreage by its

respective production guarantee, by type if

applicable;

(2) Multiplying each result of section

13(b)(1) by the respective price election, by

type if applicable;

(3) Totaling the results of section 13(b)(2);

(4) Multiplying the total production to be

counted of each type, if applicable, (see

subsection 13(c)) by the respective price

election;

(5) Totaling the results of section 13(b)(4);

(6) Subtracting the result of section 13(b)(5)

from the result in section 13(b)(3); and

(7) Multiplying the result of section

13(b)(6) by your share.

(c) The total production to count (in

pounds) from all insurable acreage on the

unit will include:

(1) All appraised production as follows:

(i) Not less than the production guarantee

for acreage:

(A) That is abandoned;

(B) Put to another use without our consent;

(C) Damaged solely by uninsured causes; or

(D) For which you fail to provide

production records;

(ii) Production lost due to uninsured

causes;

(iii) Unharvested production (mature

unharvested production may be adjusted for

quality deficiencies and excess moisture in

accordance with section 13(d));

(iv) Potential production on insured

acreage that you intend to put to another use

or abandon if you and we agree on the

appraised amount of production. Upon such

agreement, the insurance period for that

acreage will end when you put the acreage

to another use or abandon the crop. If

agreement on the appraised amount of

production is not reached:

(A) If you do not elect to continue to care

for the crop, we may give you consent to put

the acreage to another use if you agree to

leave intact, and provide sufficient care for,

representative samples of the crop in

locations acceptable to us, (The amount of

production to count for such acreage will be

based on the harvested production or

appraisals from the samples at the time

harvest should have occurred. If you do not

leave the required samples intact, or fail to

provide sufficient care for the samples, our

appraisal made prior to giving you consent to

put the acreage to another use will be used

to determine the amount of production to

count); or

(B) If you elect to continue to care for the

crop, the amount of production to count for

the acreage will be the harvested production,

or our reappraisal if additional damage

occurs and the crop is not harvested; and

(2) All harvested production from the

insurable acreage.

(3) Any production from yellow or white

dent corn will be counted as popcorn on a

weight basis and any production harvested

from plants growing in the insured crop may

be counted as popcorn production on a

weight basis.

(4) Any ear production for which we

cannot determine a shelling factor will be

considered to have an 80 percent (80%)

shelling factor.

(d) Mature popcorn may be adjusted for

excess moisture and quality deficiencies. If

moisture adjustment is applicable, it will be

made prior to any adjustment for quality.

(1) Production will be reduced by 0.12

percent for each 0.1 percentage point for

moisture in excess of 15 percent (15%). We

may obtain samples of the production to

determine the moisture content.

(2) Popcorn production will be eligible for

quality adjustment if, due to an insurable

cause of loss that occurs within the insurance

period, it is not merchantable popcorn and is

rejected by the processor. The production

will be adjusted by:

(i) Dividing the value per pound of the

damaged popcorn by the base contract price

per pound for undamaged popcorn; and

(ii) Multiplying the result by the number of

pounds of such popcorn.

14. Written Agreements.

Designated terms of this policy may be

altered by written agreement in accordance

with the following:

(a) You must apply in writing for each

written agreement no later than the sales

closing date, except as provided in section

14(e);

(b) The application for a written agreement

must contain all variable terms of the

contract between you and us that will be in

effect if the written agreement is not

approved;

(c) If approved, the written agreement will

include all variable terms of the contract,

including, but not limited to, crop type or

variety, the guarantee, premium rate, and

price election;

(d) Each written agreement will only be

valid for one year (If the written agreement

is not specifically renewed the following

year, insurance coverage for subsequent crop

years will be in accordance with the printed

policy); and

(e) An application for a written agreement

submitted after the sales closing date may be

approved if, after a physical inspection of the

acreage, it is determined that no loss has

occurred and the crop is insurable in

accordance with the policy and written

agreement provisions.

Signed in Washington, D.C., on April 2,

1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–9008 Filed 4–8–97; 8:45 am]

BILLING CODE 3410–FA–P

DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

7 CFR Parts 4279 and 4287

RIN 0570–AA25

Rural Venture Capital Demonstration

Program

AGENCY: Rural Business-Cooperative

Service (RBS), USDA.

ACTION: Advanced notice of proposed

rulemaking.

SUMMARY: Section 761 of the Federal

Agriculture Improvement and Reform

Act of 1996 (Pub. L. 104–127) adds

section 381O to the Consolidated Farm

and Rural Development Act (7 U.S.C.

1921 et seq.) which authorizes a

demonstration program using Federal

loan guarantees to attract venture capital

funds to rural areas. RBS is preparing to

develop regulations to implement this

program.

In order to afford the public the

maximum opportunity to contribute to

the development of this new program

and to enable the Agency to consider as

many options as possible, RBS is

requesting comments to assist in

drafting the proposed rule.

DATES: The advance notice of proposed

rulemaking is subject to written

comments received on or before May 9,

1997.

The Agency is limiting the comment

period on this advanced notice to 30

days in order to expedite the rulemaking

process. The proposed rule will have a

longer comment period.

ADDRESSES: Submit written comments

in duplicate to the Chief, Regulations

and Paperwork Management Division,

Rural Development, U.S. Department of

Agriculture, Stop Box 0743, 1400

Independence Avenue SW.,

Washington, DC 20250–0743. All

written comments will be available for

public inspection during regular work

hours at the above address. Comments

may be submitted via the internet by

addressing them to

‘‘comments@rus.usda.gov’’ and must

contain ‘‘venture’’ in the subject.

FOR FURTHER INFORMATION CONTACT: Rick

Bonnet, Senior Commercial Loan

Specialist, RBS, U.S. Department of

Agriculture, Stop 3221, 1400

Independence Avenue SW.,

Washington, DC 20250–3221,

Telephone (202) 720–1804.

SUPPLEMENTARY INFORMATION:

Classification

This rule will be determined to be

‘‘significant’’ and will be reviewed by

OMB under Executive Order 12866.
17108 Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Proposed Rules

The statute calls for the Secretary of

Agriculture to designate for each fiscal

year up to 10 community development

venture organizations to demonstrate

the utility of guarantees to attract

increased private investment in rural

private business enterprises.

To be eligible to participate in the

demonstration program, an organization

shall establish a rural business private

investment pool (referred to as a ‘pool’)

for the purpose of making equity

investment in rural private business

enterprises.

From amounts in the national reserve

account of the Trust Fund authorized

under Subtitle E—Rural Community

Advancement Program, section 381E,

the Secretary shall guarantee the funds

in a pool against loss, except that the

guarantee shall not exceed an amount

equal to 30 percent of the total funds in

the pool. The Secretary shall issue

guarantees covering not more than

$15,000,000 of contingent liabilities for

each of fiscal years 1996 through 2002.

The term of a guarantee shall not exceed

10 years.

To be eligible to participate in the

demonstration program, an organization

shall submit a plan that describes

potential sources and uses of the pool to

be established by the organization; the

utility of the guarantee authority in

attracting capital for the pool; and, on

selection, mechanisms for notifying

State, local, and private nonprofit

business development organizations and

business of the existing pool.

The Secretary shall conduct a

competition for the designation and

establishment of pools. In conducting

the competition, the Secretary shall give

priority to organizations that have a

demonstrated record of performance or

have a board and executive director

with experience in venture capital,

small business equity investment, or

community development finance;

propose to serve low-income

communities; propose to maintain an

average investment of not more than

$500,000 from the pool of the

organization; invest funds statewide or

in a multicounty region; and propose to

target job opportunities resulting from

the investments primarily to

economically disadvantaged

individuals, as determined by the

Secretary. To the extent practicable, the

Secretary shall designate organizations

in diverse geographic areas.

Programs Affected

No program in the Catalog of Federal

Domestic Assistance is impacted by this

action.

Intergovernmental Review

As set forth in the final rule and

related Notice to 7 CFR part 3015,

subpart V, 48 FR 29112, June 24, 1983,

Rural Venture Capital Demonstration

Program investments are subject to the

provisions of Executive Order 12372

which requires intergovernmental

consultation with state and local

officials. RBS conducts

intergovernmental consultation in the

manner delineated in RD Instruction

1940–J, ‘‘Intergovernmental Review of

Farmers Home Administration Programs

and Activities.’’

Comments Invited

Interested parties are invited to

participate in the making of the

proposed rule by submitting such

written data, views, arguments, or

proposal as they may desire. Comments

and proposals may include illustrations

or references to forms and procedures

utilized in other program areas in the

industry.

Comments are specifically solicited

concerning the choice and relative

importance of selection criteria,

structuring of the guarantee, when and

under what circumstances the Agency

will make payment under the guarantee,

requirements of the community

development venture organization’s

proposed workplan, rights and

restrictions of investors in the rural

business private investment pools,

requirements for the organizational

structure of the community

development venture organizations,

Agency oversight responsibilities,

investment pool management, and any

other comments concerning this issue.

Dated: April 1, 1997.

Inga Smulkstys,

Acting Under Secretary for Rural

Development.

[FR Doc. 97–8993 Filed 4–8–97; 8:45 am]

BILLING CODE 3410–XY–U

FEDERAL HOUSING FINANCE BOARD

12 CFR Chapter IX

[No. 97–35]

Mission Achievement by the Federal

Home Loan Banks

AGENCY: Federal Housing Finance

Board.

ACTION: Advance notice of proposed

rulemaking (ANPRM).

SUMMARY: The Federal Housing Finance

Board (Finance Board) is requesting

public comment on ways in which the

Federal Home Loan Banks (Banks) can

further achieve their statutory mission

to support housing finance and

community investment and ways in

which the Finance Board, as regulator of

the Federal Home Loan Bank System

(Bank System), could measure and

ensure that the Banks achieve their

mission.

DATES: Comments must be received in

writing on or before May 9, 1997.

ADDRESSES: Comments should be

mailed to: Elaine L. Baker, Secretary to

the Board, Federal Housing Finance

Board, 1777 F Street, N.W., Washington,

D.C. 20006. Comments will be available

for public inspection at this address.

FOR FURTHER INFORMATION CONTACT:

Jonathan Curtis, Senior Financial

Analyst, Office of Policy, (202) 408–

2866, or Brandon B. Straus, AttorneyAdvisor, (202) 408–2589, Office of

General Counsel, Federal Housing

Finance Board, 1777 F Street, N.W.,

Washington, D.C. 20006.

SUPPLEMENTARY INFORMATION:

I. Background and General Issues

A. Introduction

The Finance Board has a statutory

mandate to supervise the Banks in order

to ensure that they carry out their

housing finance mission. See 12 U.S.C.

1422a(a)(3). The Federal Home Loan

Bank Act (Bank Act) authorizes, and in

some instances requires, the Banks to

make advances and other credit

products available to member and

nonmember borrowers to support both

housing finance and community

investment. See id. sections 1430,

1430b. For instance, section 10(a) of the

Bank Act authorizes the Banks to make

advances to provide members with a

source of funding to support housing

finance. See id. section 1430(a).

Sections 10(i) and 10(j) of the Bank Act

require the Banks to establish two

specific advances programs, an

Affordable Housing Program (AHP) and

a Community Investment Program (CIP),

to promote affordable housing and

community investment finance. See id.

section 1430(j), (i). Section 10(j)(10) of

the Bank Act authorizes the Banks to

establish community investment cash

advance programs in addition to the

AHP and CIP. See id. section

1430(j)(10). In sum, the Finance Board

believes it is clear from the Bank Act

that the mission of the Banks is to

support and promote housing finance

and community investment.

The Finance Board is in the process

of devolving to the Banks functions

currently performed by the Finance

Board in a number of areas that are more

appropriately viewed as Bank