Title: ADVANCE NOTICE OF PROPOSED RULEMAKING--Loan Policies and Operations--12 CFR Part 614
Issue Date: 02/16/1988
Federal Register Cite: 53 FR 4417
FARM CREDIT ADMINISTRATION
12 CFR Part 614
Loan Policies and Operations
ACTION: Advance Notice of Proposed Rulemaking.
SUMMARY: The Agricultural Credit Act of 1987 (Pub. L. 100-233) (1987 Act), enacted on January 6, 1988, requires the Farm Credit Administration (FCA) to implement new provisions of the Farm Credit Act of 1971. Among other things, the 1987 Act establishes new borrower rights and procedures for the restructuring of loans from Farm Credit System (System) institutions, and requires FCA to issue regulations requiring System institutions to cooperate in certain State mediation programs. The FCA seeks comments on the manner and process for implementing these section.
DATE: Comments must be received on or before February 29, 1988.
ADDRESS: Comments should be submitted in writing, in triplicate, to Anne E. Dewey, General Counsel, Farm Credit Administration, 1501 Farm Credit Drive, McLean, Virginia 22102-5090.
FOR FURTHER INFORMATION CONTACT: Nancy E. Lynch, Senior Attorney, Office of General Counsel, Farm Credit Administration, 1501 Farm Credit Drive, McLean, VA 22102-5090, (703) 883-4020, TDD (703) 883-4444.
TEXT: SUPPLEMENTARY INFORMATION: Title I of the Agricultural Credit Act of 1987 (Pub. L. 100-233) (1987 Act) amended the Farm Credit Act of 1971 (1971 Act) by adding several new sections to Title IV of the 1971 Act relating to the rights of borrowers from System institutions. In particular, System institutions are directed to develop policies governing the restructuring of distressed loans, as defined in the 1971 Act, and to submit the policies to FCA. Other revised provisions specify the review available to applicants and/or borrowers who are denied credit or restructuring of their loans, provide protection for borrower stock and uninsured voluntary advance payment accounts, and clarify procedures to be used in informing borrowers about qualifying for differential interest rate programs.
The 1971 Act grants the FCA rulemaking and enforcement authority regarding the System institutions' compliance with the provisions concerning restructuring of loans and other borrower rights provisions. The FCA currently has regulations set forth in 12 CFR Part 614, Subparts K, L, and N, which address borrower rights, credit reviews and forbearance decisions. The FCA requests comments concerning how these existing regulations might be revised to accommodate the new provisions of the 1971 Act, and also requests comments on the specifics of the new regulations necessary to implement those statutory provisions.
In additional, section 503(b) of the 1987 Act requires the FCA to prescribe rules requiring System institutions to cooperate in good faith with requests for, and analysis of, information made in the course of mediation under any agricultural loan mediation program certified by the Secretary of Agriculture in accordance with section 501 of the 1987 Act. The FCA invites comments on the interrelationship, if any, between the provisions in Title IV of the 1971 Act concerning borrower rights and the requirement for cooperation in State mediation programs. For example, does participation in a State mediation program affect the processing of a request by a borrower or applicant for credit review committee action?
The FCA also requests comments concerning whether a public hearing would contribute to FCA's consideration of the issues involved in these regulations and, if so, what particular issues should be addressed at such a hearing.
A notice of proposed rulemaking will be published in due course after consideration of the comments received in response to this notice.
Dated: February 10, 1988.
David A. Hill,
Secretary, Farm Credit Administration Board.
[FR Doc. 88-3230 Filed 2-12-88; 8:45 am]
BILLING CODE 6705-01-M