Federal Register / Vol. 60, No. 241 / Friday, December 15, 1995 / Proposed Rules 64401

(d) SBA fees. The Borrower shall pay

SBA an annual fee of 0.125 percent of

the outstanding balance of each 504

loan approved after October 1, 1995.

§ 120.972 Oversight and evaluation of

CDCs and ADCs.

SBA may conduct an operational

review of a CDC or ADC. The SBA

Office of Inspector General may

conduct, supervise or coordinate

compliance audits pursuant to the

Inspector General Act. The CDC or ADC

must cooperate and make its staff,

records, and facilities available.

CDC Transfer, Suspension and

Revocation

§ 120.980 Transfer of CDC to ADC status.

SBA shall transfer to ADC status any

CDC that fails to meet the activity level

required by SBA, on average over two

consecutive fiscal years. SBA shall

notify the CDC in writing of the action

and of the opportunity for a hearing

pursuant to part 134 of this chapter at

least 10 business days prior to the

transfer. During the pendency of a

hearing, SBA’s action will remain in

effect.

§ 120.981 Voluntary transfer and surrender

of CDC certification.

A CDC may not transfer its

certification or withdraw from the 504

program without SBA’s consent. The

CDC must provide a plan to SBA to

transfer its portfolio. The portfolio may

only be transferred with SBA’s written

consent. If a CDC desires to withdraw

from the 504 program, it must forfeit its

portfolio to SBA. SBA may conduct an

audit of the transferring or withdrawing

CDC.

§ 120.982 Correcting CDC servicing

deficiencies.

SBA may require corrective action,

including the transfer of existing or

pending financings to another CDC in

good standing. SBA must notify the CDC

in writing of any servicing, reporting or

collection deficiencies and the

corrective actions to be taken. SBA may

instruct the CSA to withhold service

and late fees and may assess the CDC up

to $250 per day for expenses incurred

by SBA to correct the deficiencies. If

non-compliance continues for 90 days,

SBA may take the fees as compensation

for its efforts to obtain compliance.

§ 120.983 Transfer of CDC servicing to

SBA or another CDC.

If a CDC fails to correct servicing

deficiencies, or is unable or unwilling to

service its portfolio, SBA may assume

the servicing or require the transfer of

all or part of the CDC’s portfolio to

another CDC within or adjoining the

deficient CDC’s Area of Operations. If

there is no suitable CDC, SBA may

approve a transfer to another entity.

Future service fees from transferred

loans will be paid to the transferee. In

addition, the CDC’s processing authority

will be temporarily suspended.

§ 120.984 Suspension or revocation of

CDC certification.

(a) Suspend or revoke. SBA may

suspend or revoke the CDC’s

certification if a CDC:

(1) Violates a statute, an SBA

regulation, or the terms of a Debenture,

authorization, or agreement with SBA;

(2) Makes a material false statement,

knowingly misrepresents, or fails to

state a material fact;

(3) Fails to maintain good character;

(4) Fails to operate according to

prudent lending standards;

(5) Fails to correct servicing,

collection, reporting, or other

deficiencies; or

(6) Is unable or unwilling to operate

in accordance with the requirements of

this part.

(b) Transfer portfolio. Upon

suspension or revocation, the CDC must

transfer its remaining portfolio and any

504 applications or financings in

process to another CDC designated or

approved by SBA. If a pending 504

financing is completed after a transfer,

any deposit must also be transferred.

Any fees must be apportioned by SBA

between the two CDCs in proportion to

services performed.

(c) Provide written notice. SBA must

give written notice to the CDC at least

10 business days prior to the effective

date of a suspension or revocation,

informing the CDC of the opportunity

for a hearing pursuant to part 134 of this

chapter.

Enforceability of 501, 502 and 503

Loans and Other Laws

§ 120.990 501, 502, and 503 loans.

SBA has discontinued loan programs

for 501, 502, and 503 loans. Outstanding

loans remain under these programs, and

Borrowers, CDCs, and SBA must comply

with the terms and conditions of the

corresponding notes and Debentures,

and the regulations in effect when the

obligations were undertaken or last in

effect, if applicable.

§ 120.991 Effect of other laws.

No State or local law may preclude or

limit SBA’s exercise of its rights with

respect to notes, guarantees, Debentures

and Debenture Pools, or of its

enforcement rights to foreclose on

collateral.

PARTS 108, 116, 122, AND 131—

[REMOVED]

2. Parts 108, 116, 122, and 131 are

removed.

Dated: November 13, 1995.

Philip Lader,

Administrator.

[FR Doc. 95–30327 Filed 12–14–95; 8:45 am]

BILLING CODE 8025–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[EE–34–95]

RIN 1545–AT78

Notice of Significant Reduction in the

Rate of Future Benefit Accrual

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking

by cross-reference to temporary

regulations.

SUMMARY: In the Rules and Regulations

section of this issue of the Federal

Register, the IRS is issuing temporary

regulations relating to the requirements

of section 204(h) of the Employee

Retirement Income Security Act of 1974,

as amended (ERISA). Section 204(h) of

ERISA applies to defined benefit plans

and to individual account plans that are

subject to the funding standards of

section 302 of ERISA. It requires the

plan administrator to give notice of

certain plan amendments to participants

in the plan and certain other parties.

The text of those temporary regulations

also serves as the text of these proposed

regulations.

DATES: Written comments must be

received by March 14, 1996.

ADDRESSES: Send submissions to

CC:DOM:CORP:R (EE–34–95), room

5228, Internal Revenue Service, POB

7604, Ben Franklin Station, Washington,

DC 20044. In the alternative,

submissions may be hand delivered

between the hours of 8 a.m. and 5 p.m.

to CC:DOM:CORP:R (EE–34–95),

Courier’s Desk, Internal Revenue

Service, 1111 Constitution Avenue NW.,

Washington DC.

FOR FURTHER INFORMATION CONTACT:

Betty J. Clary, (202) 622–6070 (not a tollfree number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collection of information

contained in this notice of proposed
64402 Federal Register / Vol. 60, No. 241 / Friday, December 15, 1995 / Proposed Rules

rulemaking has been submitted to the

Office of Management and Budget for

review in accordance with the

Paperwork Reduction Act of 1995 (44

U.S.C. 3507).

Comments on the collection of

information should be sent to the Office

of Management and Budget, Attn: Desk

Officer for the Department of Treasury,

Office of Information and Regulatory

Affairs, Washington, DC 20503, with

copies to the Internal Revenue Service,

Attn: IRS Reports Clearance Officer,

T:FP, Washington, DC 20224. Comments

on the collection of information should

be received by February 13, 1996.

An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless the collection of information

displays a valid control number.

The collection of information is in

§ 1.411(d)–6T which implements the

statutory requirement of section 204(h)

of ERISA that a plan administrator

provide notice to participants and

certain other parties if certain pension

plans are amended to provide for a

significant reduction in the rate of

future benefit accrual. This collection of

information is required to assure that

the rights of participants in plans

subject to section 204(h) of ERISA are

protected. The likely respondents are

small businesses. Responses to this

collection of information are required

under section 204(h) of ERISA in order

for certain amendments to qualified

plans to become effective.

These regulations do not involve any

issues of confidentiality.

Estimated total annual reporting

burden: 15,000 hours.

The estimated annual burden per

respondent varies from 1 hour to 40

hours, depending on individual

circumstances, with an estimated

average of 5 hours.

Estimated number of respondents:

3,000.

Estimated annual frequency of

responses: Once.

Background

Temporary regulations in the Rules

and Regulations portion of this issue of

the Federal Register amend the Income

Tax Regulations (26 CFR part 1)

(relating to section 411(d)). The text of

those temporary regulations also serves

as the text of these proposed

regulations. The preamble to the

temporary regulations explains the

temporary regulations.

Special Analyses

It has been determined that this notice

of proposed rulemaking is not a

significant regulatory action as defined

in EO 12866. Therefore, a regulatory

assessment is not required. It also has

been determined that section 553(b) of

the Administrative Procedure Act (5

U.S.C. chapter 5) and the Regulatory

Flexibility Act (5 U.S.C. chapter 6) do

not apply to these regulations, and,

therefore, a Regulatory Flexibility

Analysis is not required. Pursuant to

section 7805(f) of the Internal Revenue

Code, the notice of proposed rulemaking

will be submitted to the Chief Counsel

for Advocacy of the Small Business

Administration for comment on their

impact on small business.

Comments and Requests for a Public

Hearing

Before these proposed regulations are

adopted as final regulations,

consideration will be given to any

written comments (a signed original and

eight (8) copies) that are submitted

timely to the IRS. All comments will be

available for public inspection and

copying. A public hearing may be

scheduled if requested in writing by a

person that timely submits written

comments. If a public hearing is

scheduled, notice of the date, time, and

place for the hearing will be published

in the Federal Register.

Drafting Information: The principal author

of these regulations is Betty J. Clary, Office

of the Associate Chief Counsel (Employee

Benefits and Exempt Organizations), IRS.

However, other personnel from the IRS and

Treasury Department participated in their

development.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

Proposed Amendments to the

Regulations

Accordingly, 26 CFR part 1 is

proposed to be amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for part 1 continues to read, in part, as

follows:

Authority: 26 U.S.C. 7805. * * *

Section 1.411(d)–6 also issued under

Reorganization Plan No. 4 of 1978, 29

U.S.C. 1001nt. * * *

Par. 2. Section 1.411(d)–6 is added to

read as follows:

§ 1.411(d)–6 Section 204(h) notice.

[The text of this proposed section is

the same as the text of § 1.411(d)–6T

published elsewhere in this issue of the

Federal Register.]

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 95–30415 Filed 12–12–95; 1:23 pm]

BILLING CODE 4830–01–U

26 CFR Part 301

[DL–01–95]

RIN 1545–AT48

Disclosure of Returns and Return

Information to Procure Property or

Services for Tax Administration

Purposes

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: These proposed regulations

relate to the disclosure of returns and

return information in connection with

the procurement of property and

services for tax administration purposes.

The amendments would authorize the

Department of Justice, including offices

of United States Attorneys, to make

such disclosures. Current disclosure

authority within the Department of

Justice rests only with the Tax Division.

The amendments also reflect a change to

the law made by the Omnibus Budget

Reconciliation Act of 1990 regarding the

type of services about which disclosures

may be made.

DATES: Comments and requests for a

public hearing must be received by

March 14, 1996.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (DL–01–95), room

5228, Internal Revenue Service, POB

7604, Ben Franklin Station, Washington,

DC 20044. In the alternative,

submissions may be hand delivered

between the hours of 8 a.m. and 5 p.m.

to: CC:DOM:CORP:R (DL–01–95),

Courier’s Desk, Internal Revenue

Service, 1111 Constitution Avenue NW.,

Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Donald Squires, 202–622- 4570 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

Section 6103(n) of the Internal

Revenue Code (Code) authorizes the

disclosure of returns and return

information, pursuant to regulations

prescribed by the Secretary of the

Treasury, ‘‘to the extent necessary in

connection with the processing, storage,

transmission, and reproduction of such

returns and return information, the

programming, maintenance, repair,