Federal Register / Vol. 63, No. 150 /Wednesday, August 5, 1998 /Rules and Regulations 41715

(i) The borrower has exhausted all

other servicing provisions contained in

this subpart;

(ii) The borrower is experiencing

severe financial problems;

(iii) Any management deficiencies

must have been corrected or the

borrower must submit a plan acceptable

to the State Office to correct any

deficiencies before an interest rate

adjustment may be considered;

(iv) Borrower user rates must be

comparable to similar systems. In

addition, the operating expenses

reported by the borrower must appear

reasonable in relation to similar system

expenses;

(v) The borrower has cooperated with

Rural Development in exploring

alternative servicing options and has

acted in good faith with regard to

eliminating the delinquency and

complying with its loan agreements and

agency regulations; and

(vi) The borrower’s account must be

delinquent at least one annual debt

payment for 180 days.

(2) Conditions of approval. All

borrowers approved for an adjustment

in the rate of interest by the

Administrator shall agree to the

following conditions:

(i) The borrower shall agree not to

maintain cash or cash reserves beyond

what is reasonable at the time of interest

rate adjustment to meet debt service,

operating, and reserve requirements.

(ii) A review of the borrower’s

management and business operations

may be required at the discretion of the

State Director. This review shall be

performed by an independent expert

who has been recommended by the

State Director and approved by the

National Office. The borrower must

agree to implement all

recommendations made by the State

Director as a result of the review.

(iii) If requested, a copy of the latest

audited financial statements or

management report must be submitted

to the Administrator.

(3) Reamortization. At the discretion

of the Administrator, the interest rate

charged on outstanding loans of eligible

borrowers may be adjusted to no less

than the poverty interest rate and the

term of the loans may be extended up

to a new 40 year term or the remaining

useful life of the facility, whichever is

less.

Dated: June 18, 1998.

Jill Long Thompson,

Under Secretary Rural Development.

[FR Doc. 98–20914 Filed 8–4–98; 8:45 am]

BILLING CODE 3410–XV–U

DEPARTMENT OF AGRICULTURE

Rural Housing Service

Rural Business-Cooperative Service

Rural Utilities Service

Farm Service Agency

7 CFR Part 1955

Property Management

AGENCIES: Rural Housing Service, Rural

Business-Cooperative Service, Rural

Utilities Service, and Farm Service

Agency, USDA.

ACTION: Final rule.

SUMMARY: The Agencies are revising

their Property Management regulations

to clarify changes in definitions that

only affect Real Estate Owned (REO) by

the Agency, and not a customer’s

account. This action is being taken to

update and correct the definitions of the

terms ‘‘nonrecoverable’’ and

‘‘recoverable.’’ The intended effect is to

improve the Agencies’ recordkeeping

systems.

EFFECTIVE DATE: August 5, 1998.

FOR FURTHER INFORMATION CONTACT: Carl

Muhlbauer, Program Support Staff,

Rural Housing Service, U.S. Department

of Agriculture, Stop 0761, South

Agriculture Building, 1400

Independence Avenue SW.,

Washington, DC 20250–0761; telephone

(202) 690–2141.

SUPPLEMENTARY INFORMATION:

Classification and Summary of Changes

This action is not subject to the

provisions of Executive Order 12866

since it only involves a change in the

way the Agencies perform their

accounting. In pre-Credit Reform

practice, taxes were paid out of the

revolving funds, making it impossible to

identify and credit later tax payment

reimbursements to the properties

affected. This change will allow the

Agencies to more precisely charge and

credit tax payments related to Real

Estate Owned (REO) property by

associating them with the specific

properties on which taxes are invoiced.

Property management regulation

definitions of ‘‘nonrecoverable’’ and

‘‘recoverable’’ and policy and procedure

for related Agency expenditures are

being revised to conform to certain

definitions and cost accounting

developed under the Credit Reform Act

as implemented through the Office of

Management and Budget Circular A–34.

Definitions developed under OMB

guidance, intended to distinguish

between administrative expenses

directly related to program operations

(nonrecoverable), and expenses directly

related to and chargeable to a borrower

or REO account (recoverable), including

the costs of foreclosing, managing, and

selling collateral, have been in use

under unpublished internal Agency

policy (RD Instruction 2024-A). Property

Management regulations were never

revised to reflect the change in

definitions. These revisions do not

affect the legal or actual recoverability

of a charge from a borrower. The

replacement of the term

‘‘nonrecoverable costs’’ with

‘‘recoverable costs’’ in §§ 1955.67,

1955.68, and 1955.69 affects only REO

property, not a borrower account. Since

the public is not affected by this

rulemaking change, publication for

notice and comment is not necessary.

Programs Affected

These programs or activities are listed

in the Catalog of Federal Domestic

Assistance and are subject to the

provisions of Executive Order 12372

which require intergovernmental

consultation with State and local

officials under the following numbers:

10.405—Farm Labor Housing Loans and

Grants

10.407—Farm Ownership Loans

10.411—Rural Housing Site Loans

10.415—Rural Rental Housing Loans

10.416—Soil and Water Loans

10.421—Indian Tribes and Tribal

Corporation Loans

10.760—Water and Waste Disposal

Systems for Rural Communities

10.764—Resource Conservation and

Development Loans

10.765—Watershed Protection and

Flood Prevention Loans

10.766—Community Facilities Loans

10.767—Intermediary Relending

Program

10.768—Business and Industrial Loans

10.770—Water and Waste Disposal

Loans and Grants

The following programs or activities

are excluded from the scope of

Executive Order 12372 which requires

intergovernmental consultation with

State and local officials, under the

following numbers:

10.404—Emergency Loans

10.406—Farm Operating Loans

10.443—Outreach and Assistance

Grants for Socially Disadvantaged

Farmers and Ranchers

10.850—Rural Electrification Loans and

Loan Guarantees

Paperwork Reduction Act

The information collection

requirements contained in this

regulation have been approved by the
41716 Federal Register / Vol. 63, No. 150 /Wednesday, August 5, 1998 /Rules and Regulations

Office of Management and Budget

(OMB) under the provisions of 44 U.S.C.

chapter 35 and have been assigned OMB

control numbers 0575–0109 and 0575–

0110 in accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C. 3507).

This rule does not revise or impose any

new information collection or

recordkeeping requirements.

Unfunded Mandates Reform Act

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA), Pub. L.

104–4, establishes requirements for

Federal agencies to assess the effects of

their regulatory actions on State, local,

and tribal governments and the private

sector. Under section 202 of the UMRA,

the Agencies generally must prepare a

written statement, including a cost

benefit analysis, for proposed and final

rules with ‘‘Federal mandates’’ that may

result in expenditures to State, local, or

tribal governments, in the aggregate, or

to the private sector, of $100 million or

more in any one year. When such a

statement is needed for a rule, section

205 of the UMRA generally requires the

Agencies to identify and consider a

reasonable number of regulatory

alternatives and adopt the least costly,

more cost-effective or least burdensome

alternative that achieves the objectives

of the rule.

This rule contains no Federal

mandates (under regulatory provisions

of title II of the UMRA) 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 UMRA.

Regulatory Flexibility Act

The undersigned certify that this rule

will not have a significant impact on a

substantial number of small entities as

defined under the Regulatory Flexibility

Act. Pub. L. 96-534, as amended (5

U.S.C. 601). No actions are being taken

under this rule that affect small entities.

These changes only affect Agency

recordkeeping. Therefore, a Regulatory

Flexibility Analysis has not been

prepared.

Environmental Impact Statement

It is the determination of the issuing

Agencies that this action is not a major

Federal action significantly affecting the

environment and, in accordance with

the National Environmental Policy Act

of 1969, Pub. L. 91–190, an

Environmental Impact Statement is not

required.

Executive Order 12988

This rule has been reviewed in

accordance with Executive Order 12988,

Civil Justice Reform. In accordance with

this rule: (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 this

rule; and (3) administrative proceedings

in accordance with 7 CFR parts 11, and

1900, subpart B or 780, as applicable,

must be exhausted before bringing suit

in court challenging action taken under

this rule unless those regulations

specifically allow bringing suit at an

earlier time.

List of Subjects in 7 CFR Part 1955

Foreclosure, Government acquired

property, Government property

management Chapter XVIII, title 7, Code

of Federal Regulations is amended as

follows:

PART 1955—PROPERTY

MANAGEMENT

1. The authority citation for part 1955

continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42

U.S.C. 1480.

Subpart A—Liquidation of Loans

Secured by Real Estate and

Acquisition of Real and Chattel

Property

2. Section 1955.3 is amended by

revising the definitions of

‘‘Nonrecoverable costs’’ and

‘‘Recoverable costs’’ to read as follows:

§ 1955.3 Definitions.

* * * * *

Nonrecoverable cost is a contractual

or noncontractual program loan cost

expense not chargeable to a borrower,

property account, or part of the loan

subsidy.

* * * * *

Recoverable cost is a contractual or

noncontractual program loan cost

expense chargeable to a borrower,

property account, or part of the loan

subsidy.

* * * * *

Subpart B—Management of Property

3. Section 1955.53 is amended by

revising the definitions of

‘‘Nonrecoverable costs’’ and

‘‘Recoverable costs’’ to read as follows:

§ 1955.53 Definitions.

* * * * *

Nonrecoverable cost is a contractual

or noncontractual program loan cost

expense not chargeable to a borrower,

property account, or part of the loan

subsidy.

* * * * *

Recoverable cost is a contractual or

noncontractual program loan expense

chargeable to a borrower, property

account, or part of the loan subsidy.

* * * * *

§§ 1955.67—1955.71 [Removed and

Reserved]

4. Sections 1955. 67 through 1955.71

are removed and reserved.

Dated: May 19, 1998.

Jan E. Shadburn,

Administrator, Rural Housing Service.

Dated: May 21, 1998.

William P. Hagy,

Acting Administrator, Rural BusinessCooperative Service.

Dated: May 28, 1998.

Wally B. Beyer,

Administrator, Rural Utilities Service.

Dated: June 1, 1998.

Keith Kelly,

Administrator, Farm Service Agency.

[FR Doc. 98–20393 Filed 8–4–98; 8:45 am]

BILLING CODE 3410–XY–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 98–CE–54–AD; Amendment 39–

10584; AD 98–12–31]

RIN 2120–AA64

Airworthiness Directives; British

Aerospace Jetstream Model 3101

Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Direct final rule; confirmation of

effective date.

SUMMARY: This action confirms the

effective date of Airworthiness Directive

(AD) 98–12–31, which applies to certain

British Aerospace Jetstream Model 3101

airplanes. AD 98–12–31 requires

repositioning the fuel cross feed pipes

in the lower center fuselage to give an

overall clearance of 2 inches when

measuring from the bottom of Frame

Station 223. This AD was the result of

mandatory continuing airworthiness

information (MCAI) issued by the

airworthiness authority for the United

Kingdom. The actions specified in this

AD are intended to prevent the fuel pipe

from fracturing during a wheels up

landing because of the positioning of the

fuel cross feed pipes, which could result

in an airplane fire.

EFFECTIVE DATE: September 10, 1998.

FOR FURTHER INFORMATION CONTACT: Mr.

S.M. Nagarajan, Aerospace Engineer,

FAA, Small Airplane Directorate,