Source: https://www.federalregister.gov/documents/2004/12/08/04-26872/servicing-of-delinquent-community-and-business-programs-loans-workout-agreements
Timestamp: 2017-08-19 18:04:00
Document Index: 320337647

Matched Legal Cases: ['art 3015', 'art 1951', '§\u20091951', '§\u20091951', '§\u20091951', '§\u20091951']

Federal Register :: Servicing of Delinquent Community and Business Programs Loans-Workout Agreements
Servicing of Delinquent Community and Business Programs Loans-Workout Agreements
A Rule by the Rural Housing Service, the Rural Business-Cooperative Service, the Rural Utilities Service, and the Farm Service Agency on 12/08/2004
0575-AC57
https://www.federalregister.gov/d/04-26872 https://www.federalregister.gov/d/04-26872
The Rural Housing Service (RHS) hereby amends the regulation utilized to service the Community Facilities and Business Programs loan program by adding requirements for servicing delinquent Community Facilities in conformance with the Debt Collection Improvement Act of 1996. The intended effect of this action is to establish a workout agreement with delinquent borrowers to collect delinquent loans prior to referral for treasury offset.
Dan Spieldenner, Community Programs Senior Loan Specialist, Rural Housing Service, U.S. Department of Agriculture, STOP 0787, 1400 Independence Ave. SW., Washington, DC 20250-0787, telephone: (202) 720-9700.
This program is subject to the provisions of Executive Order 12372, which requires intergovernmental consultation with State and local officials. RHS conducts intergovernmental consultations for each loan in the manner delineated in 7 CFR part 3015, subpart V.Start Printed Page 70884
The information collection and record keeping requirements contained in this regulation have been approved by the Office of Management and Budget (OMB) under the provisions of 44 U.S.C. chapter 35 and were assigned OMB control number 0575-0066 in accordance with the Paperwork Reduction Act of 1995. Under the Paperwork Reduction Act of 1995, no person is required to respond to a collection of information unless it displays a valid OMB control number. The revisions in this rulemaking for part 1951 required an amendment to the burden package and this modification has been approved by OMB.
The proposed rule was published in the Federal Register on April 30, 2004 (69 FR 23697), for public comment. We received no comments on the proposed rule. The Debt Collection Improvement Act of 1996 requires transfer of accounts that are more than 180 days delinquent to the Department of Treasury for collection by offset of Federal payments unless a suitable agreement for collection of the delinquent amount is negotiated between the borrower and the federal agency. This change to regulation establishes requirements for negotiation of a “Workout Agreement” and the reporting requirements that are necessary to monitor the borrower's progress in resolving the delinquency. It also incorporates some administrative corrections. There are no substantive changes from the notice of proposed rulemaking.
2. Section 1951.203 is amended by revising paragraph (a) to read as follows:
§ 1951.203
3. Section 1951.222 is amended by revising paragraph (a)(1) to read as follows:
§ 1951.226
4. Section 1951.226 is amended in paragraph (b)(4)(ii) by revising the word “below” to read “of this subpart.”
5. Section 1951.230 is amended in paragraph (f)(2) by revising the words “Form FmHA or its successor agency under Public Law 103-354 442-46” to read “an Agency approved form”.
6. Section 1951.242 is added to read as follows:
§ 1951.242
(c) For loans that are delinquent, the borrower must provide, monthly comparative financial statements in a format that is acceptable to the Agency Start Printed Page 70885by the 15th day of the following month. The Agency may waive this requirement if it would cause a hardship for the borrower or the borrower is actively marketing the security property.
§ 1951.250
7. Section 1951.250 is amended by removing the last sentence.
[FR Doc. 04-26872 Filed 12-7-04; 8:45 am]