Source: https://www.federalregister.gov/documents/2000/11/22/00-29812/emergency-steel-guarantee-loan-program-commercial-lending-practices-and-re-opening-of-period-for
Timestamp: 2018-02-23 14:54:23
Document Index: 234389714

Matched Legal Cases: ['art 400', '§\u2009400', '§\u2009400', '§\u2009400', '§\u2009400', '§\u2009400', 'art;\n10', '§\u2009400', '§\u2009400', '§\u2009400', '§\u2009400', '§\u2009400', '§\u2009400', '§\u2009400']

Federal Register :: Emergency Steel Guarantee Loan Program; Commercial Lending Practices and Re-Opening of Period for Applications
Emergency Steel Guarantee Loan Program; Commercial Lending Practices and Re-Opening of Period for Applications
A Rule by the Emergency Steel Guarantee Loan Board on 11/22/2000
This rule is effective November 22, 2000.
70292-70294 (3 pages)
https://www.federalregister.gov/d/00-29812 https://www.federalregister.gov/d/00-29812
The Emergency Steel Guarantee Loan Board (Board) is amending the regulations governing the Emergency Steel Guarantee Loan Program (Program). These changes are meant to harmonize certain program requirements with commercial lending practices and to open a second period for the submission of applications. The intent of these changes is to streamline program administration both for the Board and the lenders and to allow submission of additional applications for loan guarantees.
Marguerite S. Owen, General Counsel, Emergency Steel Guarantee Loan Board, 1099—14th Street, NW., Suite 2600 East, Washington, DC 20005, (202) 219-0584.
On October 27, 1999, the Board published a final rule codifying at Chapter 4, Title 13, Code of Federal Regulations (CFR), regulations implementing the Program, as established in Chapter 1 of Public Law 106-51, the Emergency Steel Loan Guarantee Act of 1999 (64 FR 57932). Since those initial regulations were published the Board has made a number of changes to the regulations meant to conform the regulations to the Guarantee Agreement between the government and the lender and to allow for participations in unguaranteed tranches of loans guaranteed under the Program. Today the Board is making additional changes designed to harmonize certain program requirements with commercial lending practices, streamline program operation, and to open a second period for the submission of applications. In addition, several non-substantive changes are being made to change addresses and allow for certain delegations of authority. Start Printed Page 70293
For the reasons set forth in the preamble, 13 CFR part 400 is amended as follows:
Authority: Pub. L. 106-51, 113 Stat. 252 (15 U.S.C. 1841 note); Pub. L. 106-102, 113 Stat. 1338.
2. Section 400.1 is revised to read as follows:
This part is issued by the Emergency Steel Guarantee Loan Board pursuant to section 552 of title 5 of the United States Code and the Emergency Steel Loan Guarantee Act of 1999, Chapter 1 of Public Law 106-51, 113 Stat. 252, as amended by section 734 of Public Law 106-102, 113 Stat. 1338, the Gramm-Leach-Bliley Financial Modernization Act (1999).
3. Section 400.103 is revised to read as follows:
The principal offices of the Board are located at 1099—14th Street, NW, Suite 2600 East, Washington, DC 20005.
4. Section 400.105 is amended by adding paragraph (d) to read as follows:
§ 400.105
(d) An individual may hold more than one staff position.
5. Section 400.107 is amended by revising paragraph (b)(3) to read as follows:
§ 400.107
(3) Electronic records. Information available under this section that was created on or after November 1, 1996, shall also be available on the Board's website found at http://elb.osec.doc.gov and at http://elb.commerce.gov.
6. Section 400.110 is revised to read as follows:
§ 400.110
The Board's rules in this chapter may be adopted or amended, or new rules may be adopted, only by majority vote of the Board.
7. Section 400.200 is amended by revising paragraph (c) to read as follows:
(c) The Lender must provide with its application a letter from at least one lending institution other than the Lender to which the Borrower has applied for financial assistance dated within six months of submission of the application, indicating that the Borrower was denied for substantially the same loan it is now applying for, and the reasons the Borrower was unable to obtain the financing for which it applied. In addition, the Lender applying for a guarantee under this Program must certify that it would not make the loan without the Board's guarantee.
8. Section 400.204 is amended by revising paragraph (c)(2)(ii) to read as follows:
§ 400.204
(ii) A fully perfected and enforceable security interest and/or lien in any other property of the Borrower's pledged to secure the loan, including accessions, replacements, proceeds, or property given by a third party as Security for the loan.
9. Section 400.205 is amended by revising paragraphs (a), (b)(2), and (b)(6) to read as follows:
(a) Application process. An original application and three copies must be received by the Board no later than 5 p.m. EST, April 2, 2001 in the Board's offices at 1099—14th Street, NW, Suite 2600 East, Washington, DC 20005. Applications which have been provided to a delivery service with “delivery guaranteed” before 5 p.m. on April 2, 2001 will be accepted for review if the Applicant can document that the application was provided to the delivery service with delivery to the address listed in this section guaranteed prior to the closing date and time. A postmark is not sufficient to meet this deadline as the application must be received by the required date and time. Applications will not be accepted via facsimile machine transmission or electronic mail.
(2) The information required for the completion of Form “Environmental Assessment and Compliance Findings for Related Environmental Laws” and attachments, as required by § 400.206(a)(2)(i)(D);
Start Printed Page 70294
(6) A certification by the Lender that the Lender meets each of the requirements of the Program as set forth in the Act and the Board's rules in this part;
10. Section 400.206 is amended by revising paragraphs (c)(5)(ii)(C) and (c)(5)(iv) to read as follows:
§ 400.206
(iv) If, on the basis of an environmental assessment, it is determined that an EIS is not required, a FONSI, as described in 40 CFR 1508.13 will be prepared. The FONSI will include the environmental assessment or a summary of it and be available to the public from the Board. The Executive Director shall maintain a record of these decisions, making them available to interested parties upon request. Requests should be directed to the Executive Director, Emergency Steel Guarantee Loan Program, 1099—14th Street, NW, Suite 2600 East, Washington, DC 20005. Prior to a final loan guarantee decision, a copy of the NEPA documentation shall be sent to the Board for consideration.
11. Section 400.207 is amended by revising paragraphs (b) introductory text and (c) to read as follows:
§ 400.207
(b) Evaluation criteria. Applications that are determined to be eligible pursuant to paragraph (a) of this section shall be subject to a substantive review by the Board based upon the following evaluation factors, in order of importance:
(c) Decisions by the Board. Upon completion of the evaluation of an application and as soon as possible after its receipt, the Board will approve or deny an eligible application that is timely received under this Program. The Board shall notify the Applicants and the Borrower in writing of the approval or denial of an application as soon as possible. Approvals for loan Guarantees shall be conditioned upon compliance with § 400.208.
12. Section 400.208 is amended by revising paragraph (a)(3) to read as follows:
§ 400.208
13. Section 400.210 is amended by removing paragraph (c)(2), redesignating paragraph (c)(3) as paragraph (c)(2), and revising it, and adding a new paragraph (d), to read as follows:
(2) Transfers by a non-Agent Lender of the non-guaranteed portion of the loan after payment of the guaranteed portion of the loan has been made under the Guarantee.
(d) The Agent must hold and may not assign or transfer an interest in a loan guaranteed under the Program equal to at least the lesser of $25 million or 15 percent of the aggregate amount of the loan. The Agent must hold and may not assign or transfer an interest in the unguaranteed portion of the loan which as a percentage of the Agent's overall interest in the loan is no less than the aggregate percentage of the loan which is not guaranteed. A non-Agent Lender must hold and may not transfer or assign an interest in the unguaranteed portion of the loan representing no less than five percent of such Lender's total interest in the Loan, except as provided paragraph (c)(2) of this section.
14. Section 400.211 is revised to read as follows:
15. Section 400.212 is revised to read as follows:
§ 400.212
The Board shall adopt a form of Guarantee to be used by the Board under the Program, and shall publish the Guarantee on its website. Modifications to the provisions of the form of Guarantee must be approved and adopted by the Board.
16. Section 400.213 is revised to read as follows:
17. Section 400.214 is revised to read as follows:
Participations in guaranteed loans.
(3) Steel company suppliers or customers, who are interested in participating as a means of commencing or solidifying the supplier or customer relationship with the borrower; or
(c) The Agent may not grant participations in that portion of its interest in a loan that may not be assigned or transferred under § 400.210(d). A Lender, other than the Agent, may not grant participations in that portion of its interest in a loan that may not be assigned or transferred under § 400.210(d).
(d) At least 5 percent of any participation interest in a loan must be unguaranteed.
[FR Doc. 00-29812 Filed 11-17-00; 2:17 pm]