[Federal Register Volume 72, Number 220 (Thursday, November 15, 2007)]
[Rules and Regulations]
[Pages 64119-64123]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-5659]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

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.

========================================================================


Federal Register / Vol. 72, No. 220 / Thursday, November 15, 2007 / 
Rules and Regulations

[[Page 64119]]



DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Parts 771, 772, 773, and 774

Rural Business-Cooperative Service

Rural Housing Service

Rural Utilities Service

Farm Service Agency

7 CFR Parts 1806, 1901, 1910, 1924, 1925, 1927, 1940, 1941, 1943, 
1950, 1951, 1955, 1956, 1962, and 1965

RIN 0560-AF60


Regulatory Streamlining of the Farm Service Agency's Direct Farm 
Loan Programs; Conforming Changes

AGENCIES: Farm Service Agency, Rural Business-Cooperative Service; 
Rural Housing Service; and Rural Utilities Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule removes the Farm Service Agency's direct Farm Loan 
Programs regulations from the Rural Development's mission area loan 
program regulations. In addition, it makes conforming changes to FSA's 
regulations for the boll weevil eradication loan program, the servicing 
of minor program loans, the special apple loan program, and the 
emergency loan for seed producers program.

DATES: Effective Date: December 31, 2007.

FOR FURTHER INFORMATION CONTACT: William D. Cobb, USDA, FSA, DAFLP, 
STOP 0520, 1400 Independence Avenue, SW., Washington, DC 20250-0520; 
telephone (202) 720-1059; electronic mail: <a href="/cdn-cgi/l/email-protection#d1b3b8bdbd8eb2beb3b391a6b5b2ffa4a2b5b0ffb6bea7"><span class="__cf_email__" data-cfemail="f2909b9e9ead919d9090b2859691dc87819693dc959d84">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Discussion of the Final Rule

    FSA proposed to move the majority of its Farm Loan Programs direct 
loan making and servicing rules from Chapter XVIII to Chapter VII of 
the Code of Federal Regulations (CFR) in a proposed rule it published 
on February 9, 2004 (69 FR 6055-6121). Prior to the Department of 
Agriculture Reorganization Act of 1994 (1994 Act), Chapter XVIII 
contained the former Farmers Home Administration (FmHA) program 
regulations and Chapter VII contained the former Agricultural 
Stabilization and Conservation Service (ASCS) program regulations. The 
1994 Act abolished both FmHA and ASCS and consolidated FmHA's Farm Loan 
Programs and ASCS programs under the newly created FSA, while the 
remaining FmHA programs were transferred to the Rural Development 
mission area agencies. With the exceptions listed below, this final 
rule removes from Chapter XVIII references to FmHA Farm Loan Programs, 
now operated by FSA.
    As a result of the 1994 Act, some of the CFR subparts published by 
FmHA were used by FSA and one or more of the Rural Development mission 
area agencies, while others were used exclusively by FSA. The Farm Loan 
Programs direct loan making and servicing rules were dispersed 
throughout Chapter XVIII, making their use difficult for all but the 
most well-informed user. Therefore, in a final rule published on 
November 8, 2007 (72 FR 63241-63361), FSA is moving its Farm Loan 
Programs regulations from Chapter XVIII to Chapter VII, and is 
consolidating and reorganizing them in a logical manner making them 
easier to use by the general public, applicants and borrowers, and FSA. 
In the proposed rule of February 9, 2004, FSA stated that when the 
final rule was published, it would remove the Chapter XVIII subparts 
used only by FSA. However, as provided in the prefatory remarks to the 
final rule published on November 8, 2007, FSA will continue to use 
subpart G of 7 CFR part 1940, subpart C of 7 CFR part 1951, and subpart 
B of 7 CFR part 1956 until it publishes a final rule revising 7 CFR 799 
for environmental procedures and 7 CFR part 792 for debt settlement 
policies and procedures.
    Lastly, FSA is amending 7 CFR parts 771, 772, 773, and 774 to 
remove CFR citations that no longer are valid.

Executive Order 12866

    This rule has been determined to be not significant under Executive 
Order 12866 and was not reviewed by OMB.

Regulatory Flexibility Act

    In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-
602), the undersigned has determined and certified by signature of this 
document that this rule will not have a significant economic impact on 
a substantial number of small entities. This rule does not impose any 
new requirements on FSA applicants and borrowers. In some cases, 
existing information collections and regulatory requirements have been 
reduced as a result of streamlining the loan making and servicing 
application processes.

Environmental Assessment

    FSA has completed an Environmental Assessment (EA) in accordance 
with the provisions of the National Environmental Policy Act of 1969 
(NEPA), 42 U.S.C. 4321-4347, the regulations of the Council on 
Environmental Quality (40 CFR parts 1500-1508) and the FSA regulations 
for compliance with NEPA, 7 CFR part 1940, subpart G. A finding of no 
significant impact (FONSI) was determined as a result of the EA 
process. The final EA and FONSI are available for review at http://www.fsa.usda.gov/FSA/webapp?area=home&subject=ecrc&topic=enl-ea. FSA 
will accept comments on the final EA and FONSI for a period of 30 days 
from the date of publication of this rule.

Executive Order 13132

    The policies contained in this rule do not have a substantial 
direct effect on the 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 the States is not 
required.

Executive Order 12988

    This final rule has been reviewed in accordance with Executive 
Order 12988, Civil Justice Reform. In accordance with this Executive 
Order: (1) All state and local laws and regulations that are in 
conflict with this rule will be

[[Page 64120]]

preempted; (2) no retroactive effect will be given to this rule; and 
(3) administrative proceedings in accordance with 7 CFR parts 11 and 
780 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.

Executive Order 12372

    For reasons contained in the Notice regarding 7 CFR part 3015, 
subpart V (48 FR 29115, June 24, 1983), the programs within this rule 
are excluded from the scope of E.O. 12372, which requires 
intergovernmental consultation with State and local officials.

Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, requires Federal agencies to assess the effects of their 
regulatory actions on state, local, and tribal governments or the 
private sector of $100 million or more in any 1 year. When such a 
statement is needed for a rule, section 205 of the UMRA requires FSA to 
prepare a written statement, including a cost benefit assessment, for 
proposed and final rules with ``Federal mandates'' that may result in 
such expenditures for state, local, or tribal governments, in the 
aggregate, or to the private sector. UMRA generally requires agencies 
to consider alternatives and adopt the more cost effective or least 
burdensome alternative that achieves the objectives of the rule.
    This rule contains no Federal mandates, as defined under 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 UMRA.

Paperwork Reduction Act

    The amendments to 7 CFR 1806, 1901, 1924, 1925, 1927, 1951, and 
1955 contained in this final rule have been approved by OMB under 
control numbers 0575-0042, 0575-0075, 0575-0087, 0575-0088, 0575-0093, 
0575-0147, 0575-0158, and 0575-0172. In accordance with 5 CFR 1320, FSA 
submitted to OMB correction worksheets to transfer applicable 
information collections to FSA-assigned OMB control numbers.

E-Government Act Compliance

    FSA 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 citizen access to Government information 
and services, and for other purposes.
    FSA has posted on the e-Gov Web site at http://www.sc.egov.usda.gov 
all the forms an applicant or borrower has to complete in their 
entirety, or review and execute. Further, FSA has made available its 
handbooks at http://www.fsa.usda.gov/FSA/webapp?area=home&subject=lare&topic=hbk. Applicants or borrowers may 
download and review any agency handbook through the ``Laws and 
Regulations'' link, and become familiar with the requirements for 
applying for benefits.

Federal Assistance Programs

    These changes affect the following FSA programs as listed in the 
Catalog of Federal Domestic Assistance:

10.404--Emergency Loans
10.406--Farm Operating Loans
10.407--Farm Ownership Loans

List of Subjects

7 CFR Part 771

    Loan programs--agriculture, Pesticides and pests, Cotton.

7 CFR Part 772

    Agriculture, Credit, Rural areas.

7 CFR Part 773

    Fruits, Loan programs--agriculture.

7 CFR Part 774

    Seeds, Loan programs--agriculture.

7 CFR Part 1806

    Buildings, Community development, Disaster assistance, Flood 
plains, Housing, Loan programs--Housing and Community Development, 
Insurance, Loan programs--Agriculture, Real property insurance, Rural 
areas.

7 CFR Part 1901

    Finance, Historic preservation, Loan Programs--Agriculture, Loan 
programs--Housing and community development, Natural resources, Rural 
areas.

7 CFR Part 1910

    Administrative practice and procedures, Applications, Credit, 
Government contracts, Loan programs--Agriculture, Loan programs--
Housing and community development, Low and moderate income housing, 
Marital status discrimination, Reporting requirements, Sex 
discrimination.

7 CFR Part 1924

    Agriculture, Construction management, Construction and repair, 
Energy conservation, Housing, Loan programs--Agriculture, Loan 
programs--Housing and community development, Low and moderate income 
housing.

7 CFR Part 1925

    Real property taxes, Taxes.

7 CFR Part 1927

    Loan programs--Agriculture, Loan programs--Housing and community 
development, Mortgages.

7 CFR Part 1940

    Administrative practice and procedure, Agriculture, Allocations, 
Grant programs--Housing and community development, Loan programs--
Agriculture, Rural areas.

7 CFR Parts 1941 and 1943

    Applicant eligibility, Beginning farmers and ranchers, Loan 
programs--agriculture.

7 CFR Part 1950

    Accounting, Loan programs--Agriculture, Military personnel.

7 CFR Part 1951

    Accounting, Account servicing, Credit, Debt restructuring, 
Foreclosure, Government acquired property, Loan programs--Agriculture, 
Loan programs--Housing and community development, Low and moderate 
income housing loans--Servicing, Mortgages, Rural areas, Sale of 
government acquired property, Surplus government property.

7 CFR Part 1955

    Foreclosure, Government acquired property, Government property 
management, Sale of government acquired property, Surplus government 
property.

7 CFR Part 1956

    Accounting, Loan programs--Agriculture, Rural areas.

7 CFR Part 1962

    Crops, Government property, Livestock, Loan programs--Agriculture, 
Rural areas.

7 CFR Part 1965

    Foreclosure, Loan programs--Agriculture, Rural areas.

0
Accordingly, 7 CFR Chapters VII and XVIII are amended as follows:

PART 771--BOLL WEEVIL ERADICATION LOAN PROGRAM

0
1. The authority citation for part 771 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; and Pub. L. 104-180, 110 
Stat. 1569.


[[Page 64121]]



0
2. Revise the first sentence of Sec.  771.15(c) introductory text to 
read as follows:


Sec.  771.15  Loan servicing.

* * * * *
    (c) Restructuring. The provisions of 7 CFR part 766 are not 
applicable to loans made under this section. * * *
* * * * *

PART 772--SERVICING MINOR PROGRAM LOANS

0
3. The authority citation for part 772 continues to read as follows:

    Authority: 5 U.S.C. 301, 7 U.S.C. 1989, 25 U.S.C. 490.


0
4. Revise the second sentence of Sec.  772.9 (b) to read as follows:


Sec.  772.9  Releases.

* * * * *
    (b) Borrower liability. * * * IMP borrowers who have had previous 
debt forgiveness on a farm loan program loan as defined in 7 CFR part 
761, however, cannot be released from liability by FSA until the 
previous loss to the Agency has been repaid with interest from the date 
of debt forgiveness. * * *
* * * * *

0
5. Revise the first sentence of Sec.  772.11 to read as follows:


Sec.  772.11  Transfer and assumption--IMP loans.

    Transfers and assumptions for IMP loans are processed in accordance 
with 7 CFR part 765. * * *

0
6. Revise the first sentence of Sec.  772.12 (b)(2) to read as follows:


Sec.  772.12  Graduation.

* * * * *
    (b) * * *
    (1) * * *
    (2) All IMP borrowers classified as ``commercial'' or ``standard'' 
by the agency must be reviewed at least every 2 years. * * *
* * * * *

0
7. Revise Sec.  772.13 (b) to read as follows:


Sec.  772.12  Delinquent account servicing.

* * * * *
    (b) IMP loans. Delinquent IMP borrowers will be serviced according 
to 7 CFR part 3, part 766, and part 1951, subpart C, concerning 
internal agency offset and referral to the Department of the Treasury 
Offset Program and Treasury Cross-Servicing (or successor regulations).
* * * * *

0
8. Revise the second sentence of Sec.  772.16 to read as follows:


Sec.  772.16  Liquidation.

    * * * If such a transfer or voluntary sale is not carried out, the 
loan will be liquidated according to 7 CFR part 766. * * *

0
9. Revise Sec.  772.17 to read as follows:


Sec.  772.17  Equal opportunity and non-discrimination requirements.

    With respect to any aspect of a credit transaction, the Agency will 
comply with the requirements of the Equal Credit Opportunity Act and 
the Department's civil rights policy in 7 CFR part 15d.

PART 773--SPECIAL APPLE LOAN PROGRAM

0
10. The authority citation for part 773 continues to read as follows:

    Authority: Pub. L. 106-224.

0
11. Revise Sec.  773.22 to read as follows:


Sec.  773.22  Loan servicing.

    Loans will be serviced as a Non-program loan in accordance with 7 
CFR part 766 during the term of the loan. If the loan is not paid in 
full during this term, servicing will proceed in accordance with 7 CFR 
part 766, subpart H.

PART 774--EMERGENCY LOAN FOR SEED PRODUCERS PROGRAM

0
12. The authority citation for part 774 continues to read as follows:

    Authority: Pub. L. 106-224.


0
13. Revise the second sentence of Sec.  774.18(b)(2) to read as 
follows:


Sec.  774.18  Interest rate, terms and security requirements.

* * * * *
    (b) * * *
    (2) * * * If the loan is not paid in full during this time and 
default occurs, servicing will proceed in accordance with 7 CFR part 
766, subpart H.
* * * * *

0
14. Revise Sec.  774.23 to read as follows:


Sec.  774.23  Loan servicing.

    Loans will be serviced as a Non-program loan in accordance with 7 
CFR part 766. If the loan is not repaid as agreed and default occurs, 
servicing will proceed in accordance with 7 CFR part 766, subpart H.

PART 1806--INSURANCE

0
15. The authority citation for part 1806 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480; 42 
U.S.C. 2942.

Subpart A--Real Property Insurance

0
16. Section 1806.1(a) is amended by removing the text ``the Farm Credit 
Programs of the Farm Service Agency (FSA) or'' in the first sentence; 
and adding a new last sentence to read as follows:


Sec.  1806.1  General.

    (a) * * * This subpart is inapplicable to Farm Service Agency, Farm 
Loan Programs.
* * * * *

Subpart B--National Flood Insurance

0
17. Section 1806.21(a) is amended by revising the last sentence to read 
as follows:


Sec.  1806.21  General.

    (a) * * * This subpart does not apply to Farm Service Agency, Farm 
Loan Programs and to Rural Rental Housing, Rural Cooperative Housing, 
or Farm Labor Housing programs of the Rural Housing Service.
* * * * *

PART 1901--PROGRAM-RELATED INSTRUCTIONS

0
18. The authority citation for part 1901 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

Subpart F--Procedures for the Protection of Historical and 
Archeological Properties

0
19. Section 1901.251 is amended by adding a new last sentence to read 
as follows:


Sec.  1901.251  Purpose.

    * * * This subpart is inapplicable to Farm Service Agency, Farm 
Loan Programs.

Subpart K--Certificates of Beneficial Ownership and Insured Notes

0
20. Section 1901.501 is amended by adding a new last sentence to read 
as follows:


Sec.  1901.501  Purpose.

     * * * This subpart is inapplicable to Farm Service Agency, Farm 
Loan Programs.

Subpart N [Removed]

0
21. Subpart N is removed and reserved.

PART 1910--GENERAL

0
22. The authority citation for part 1910 continues to read as follows:


[[Page 64122]]


    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

Subpart A [Removed]

0
23. Subpart A is removed and reserved.

Subpart B--Credit Reports (Individual)

0
24. Amend Sec.  1910.51 by adding a new last sentence to read as 
follows:


Sec.  1910.51  Purpose.

    * * * This subpart is inapplicable to Farm Service Agency, Farm 
Loan Programs.

Subpart C--Commercial Credit Reports

0
25. Amend Sec.  1910.101 by adding a new last sentence to read as 
follows:


Sec.  1910.101  Preface.

    * * * This subpart is inapplicable to Farm Service Agency, Farm 
Loan Programs.

PART 1924--CONSTRUCTION AND REPAIR

0
26. The authority citation for part 1924 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

Subpart A--Planning and Performing Construction and Other 
Development

0
27. Section 1924.1 is amended by removing the text ``, insured Farm 
Ownership (FO), Soil and Water (SW), Softwood Timber (ST)'' and the 
text ``, and Emergency (EM) loans for individuals'' from the first 
sentence; and adding a new last sentence to read as follows:


Sec.  1924.1  Purpose

    * * * This subpart is inapplicable to Farm Service Agency, Farm 
Loan Programs.

Subpart B--[Removed]

0
28. Subpart B is removed and reserved.

PART 1925--TAXES

0
29. The authority citation for part 1925 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

Subpart A--Real Estate Tax Servicing

0
30. Section 1925.1 is amended by removing the text ``a Farm Ownership 
(FO), Operating Loan (OL), Soil and Water (SW), Recreation Loan (RL), 
Emergency (EM), Economic Opportunity (EO),'' and ``Softwood Timber 
(ST),'' in the first sentence; and adding a new last sentence to read 
as follows:


Sec.  1925.1  General.

    * * * This subpart is inapplicable to Farm Service Agency, Farm 
Loan Programs.

PART 1927--TITLE CLEARANCE AND LOAN CLOSING

0
31. The authority citation for part 1927 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

Subpart B--Real Estate Title Clearance and Loan Closing

0
32. Section 1927.51(a) is amended by removing the text ``and Farm 
Service Agency (FSA) loans: Farm Ownership (FO), Nonfarm Enterprise 
(FO-NFE), Emergency (EM), Operating (OL)'' in the first sentence; 
removing the text ``Soil and Water (SW), Indian Land acquisition loan 
involving nontrust property,'' in the first sentence; and adding a new 
last sentence to read as follows:


Sec.  1927.51  General.

    (a) * * * This subpart is inapplicable to Farm Service Agency, Farm 
Loan Programs.

PART 1940--GENERAL

0
33. The authority citation for part 1940 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

Subpart L--Methodology and Formulas for Allocation of Loan and 
Grant Program Funds

0
34. Section 1940.551(a) is amended by adding a new last sentence to 
read as follows:


Sec.  1940.551  Purpose and general policy.

    (a) * * * This subpart is inapplicable to Farm Service Agency, Farm 
Loan Programs.
* * * * *


Sec. Sec.  1940.555 through 1940.559  [Removed]

0
35. Remove and reserve Sec. Sec.  1940.555 through 1940.559.

PART 1941--[REMOVED]

0
36. Remove and reserve part 1941.

PART 1943--[REMOVED]

0
37. Remove and reserve part 1943.

PART 1950--GENERAL

0
38. The authority citation for part 1950 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

Subpart C--Servicing Accounts of Borrowers Entering the Armed 
Forces

0
39. Section 1950.101 is amended by adding a new last sentence to read 
as follows:


Sec.  1950.101  Purpose.

    * * * This subpart is inapplicable to Farm Service Agency, Farm 
Loan Programs.

PART 1951--SERVICING AND COLLECTIONS

0
40. The authority citation for part 1951 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C 1932 Note; 7 U.S.C. 1989; 31 
U.S.C. 3716; 42 U.S.C. 1480.

Subpart A--Account Servicing Policies

0
41. Section 1951.1 is amended by removing the text ``Farmer Program 
loans (FP) which include Softwood Timber (ST), Operating Loan (OL), 
Farm Ownership (FO), Soil and Water (SW), Recreation Loan (RL), 
Emergency Loan (EM), Economic Emergency Loan (EE), Special Livestock 
Loan (SL), Economic Opportunity Loan (EO), and Rural Housing Loan for 
farm service buildings (RHF)''; and adding a new last sentence to read 
as follows:


Sec.  1951.1  Purpose.

    * * * In addition, this subpart is inapplicable to Farm Service 
Agency, Farm Loan Programs.

Subpart C--Offsets of Federal Payments to USDA Agency Borrowers

0
42. Revise the fourth and fifth sentences of the introductory text of 
Sec.  1951.111 and the third sentence of Sec.  1951.111(d)(1) to read 
as follows:


Sec.  1951.111  Salary offset.

    * * * For delinquent Farm Loan Programs direct loans, salary offset 
will not begin until the borrower has been notified of servicing 
options in accordance with 7 CFR part 766. In addition, for Farm Loan 
Programs direct loans, salary offset will not be instituted if the 
Federal salary has been considered on the farm operating plan, and it 
was determined the funds were to be used for another purpose other than 
payment on the USDA Agency loan. * * *
* * * * *

[[Page 64123]]

    (d) * * *
    (1) * * * For Farm Loan Programs direct loans, this notice will be 
sent after the borrower is over 90 days past due and immediately after 
sending notification of servicing rights in accordance with 7 CFR part 
766. * * *
* * * * *

Subpart D--Final Payment on Loans

0
43. Section 1951.151 is amended by removing the text ``Farm Service 
Agency (FSA),'' in the first sentence; and adding a new last sentence 
to read as follows:


Sec.  1951.151  Purpose.

    * * * In addition, this subpart is inapplicable to Farm Service 
Agency, Farm Loan Programs.

Subpart F--Analyzing Credit Needs and Graduation of Borrowers

0
44. Section 1951.251 is amended by removing the text ``Farm Service 
Agency (FSA)'', in the third sentence; and revising the fourth sentence 
to read as follows:


Sec.  1951.251  Purpose.

    * * * This subpart does not apply to Farm Service Agency, Farm Loan 
Programs and to RHS direct single family housing (SFH) customers. * * *
* * * * *

Subparts J, L, S, and T--[Removed]

0
45. Subparts J, L, S, and T are removed and reserved.

PART 1955--PROPERTY MANAGEMENT

0
46. 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

0
47. Section 1955.1 is amended by removing the text ``Farm Credit 
programs of the Farm Service Agency (FSA),'' in the second sentence; 
and revising the fourth sentence to read as follows:


Sec.  1955.1  Purpose.

    * * * This subpart does not apply to Farm Service Agency, Farm Loan 
Programs, to RHS single family housing loans, or to CF loans sold 
without insurance in the private sector. * * *
* * * * *

Subpart B--Management of Property

0
48. Section 1955.51 is amended by removing the comma immediately 
following ``(RBS)'' and adding the word ``and'' in its place; by 
removing the text ``, and Farm Service Agency (FSA),'' in the first 
sentence of the introductory paragraph; and revising the second 
sentence of the introductory paragraph to read as follows:


Sec.  1955.51  Purpose.

    * * * This subpart does not apply to Farm Service Agency, Farm Loan 
Programs, or to RHS single family housing loans or community program 
loans sold without insurance to the private sector. * * *
* * * * *

Subpart C--Disposal of Inventory Property

0
49. Section 1955.101 is amended by revising the fifth sentence to read 
as follows:


Sec.  1955.101  Purpose.

    * * * This subpart does not apply to Farm Service Agency, Farm Loan 
Programs, Single Family Housing (SFH) inventory property, or to the 
Rural Rental Housing, Rural Cooperative Housing, and Farm Labor Housing 
Programs. * * *
* * * * *

PART 1956--DEBT SETTLEMENT

0
50. The authority citation for part 1956 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 31 U.S.C. 3711; 42 
U.S.C. 1480.

Subpart B--Debt Settlement--Farm Loan Programs and Multi-Family 
Housing

0
51. Revise the second sentence of the ``debt forgiveness'' definition 
in Sec.  1956.54 to read as follows:


Sec.  1956.54  Definitions.

* * * * *
    Debt forgiveness. * * * Included, but not limited to, are losses 
from a writedown or writeoff under 7 CFR part 766, debt settlement, 
after discharge under the provisions of the bankruptcy code, and 
associated with release of liability. * * *
* * * * *

PART 1962--PERSONAL PROPERTY

0
52. The authority citation for part 1962 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

Subpart A--Servicing and Liquidation of Chattel Security

0
53. Section 1962.1 is amended by adding a new last sentence to read as 
follows:


Sec.  1962.1  Purpose.

    * * * This subpart is inapplicable to Farm Service Agency, Farm 
Loan Programs.

PART 1965--REAL PROPERTY

Subpart A--[Removed]

0
54. Subpart A is removed and reserved.

    Dated: November 5, 2007.
Mark Keenum,
Under Secretary for Farm and Foreign Agricultural Services.
    Dated: November 2, 2007.
Thomas C. Dorr,
Under Secretary for Rural Development.
[FR Doc. 07-5659 Filed 11-14-07; 8:45 am]
BILLING CODE 3410-05-P


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