OneRD Guaranteed Loan Regulation; Corrections
| Published date | 09 February 2022 |
| Record Number | 2022-02710 |
| Section | Rules and Regulations |
| Court | Agriculture Department,Rural Business-cooperative Service,Rural Housing Service,Rural Utilities Service |
Federal Register, Volume 87 Issue 27 (Wednesday, February 9, 2022)
[Federal Register Volume 87, Number 27 (Wednesday, February 9, 2022)]
[Rules and Regulations]
[Pages 7367-7368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02710]
========================================================================
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.
========================================================================
Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 /
Rules and Regulations
[[Page 7367]]
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
Rural Housing Service
Rural Business-Cooperative Service
7 CFR Part 5001
[Docket No. RUS-19-Agency-0030]
RIN 0572-AC56
OneRD Guaranteed Loan Regulation; Corrections
AGENCY: Rural Business-Cooperative Service, Rural Housing Service,
Rural Utilities Service, Department of Agriculture (USDA).
ACTION: Final rule; correction and correcting amendments.
-----------------------------------------------------------------------
SUMMARY: On December 10, 2021, Rural Development's Rural Business-
Cooperative Service, Rural Housing Service, and Rural Utilities
Service, agencies of the United States Department of Agriculture
(USDA), published a final rule with comment for the oneRD Guarantee
Loan Program (oneRD). The final rule made necessary revisions to the
policy and procedures that strengthened the oversight and management of
the growing Community Facilities, Water and Waste Disposal, Business
and Industry, and Rural Energy for America guarantee portfolios. The
final rule had an omission of information in the preamble and contained
errors in the amendatory language. This document corrects the final
regulation.
DATES: This rule is effective February 9, 2022.
ADDRESSES: Address all comments concerning this correction to Lauren
Cusick, Regulations Management Division, Rural Development Innovation
Center, U.S. Department of Agriculture, 1400 Independence Ave. SW, Stop
1522, Washington, DC 20250; telephone (202) 720-1414; email
[email protected].
FOR FURTHER INFORMATION CONTACT: Lauren Cusick, Regulations Management
Division, Rural Development Innovation Center, U.S. Department of
Agriculture, 1400 Independence Ave. SW, Stop 1522, Washington, DC
20250; telephone (202) 720-1414; email [email protected].
SUPPLEMENTARY INFORMATION: Rural Development's Rural Business-
Cooperative Service, Rural Housing Service, and Rural Utilities Service
are issuing corrections to the final rule that published December 10,
2021, at 86 FR 70349 and to 7 CFR part 5001.
List of Subjects in 7 CFR Part 5001
Business and industry, Community facility, Energy efficiency
improvement, Loan programs, Renewable energy, Rural areas, Rural
development, Water and waste disposal.
In FR Doc. 2021-26160, appearing on page 70349 in the Federal
Register of December 10, 2021, make the following correction:
Sec. 5001.452 [Corrected]
0
1. On page 70358, in the second column, Instruction 22 for Sec.
5001.452, is corrected by removing the phrase ``and adding paragraph
(b)(i)(iii)(L)(3)''. For the reasons discussed in the preamble, 7 CFR
part 5001 is corrected by making the following correcting amendments:
PART 5001--GUARANTEED LOANS
0
1. The authority citation for part 5001 continues to read as follows:
Authority: 5 U.S.C. 301; 7 U.S.C. 1926(a); 7 U.S.C. 1932(a); and
7 U.S.C. 8107.
0
2. Amend Sec. 5001.141 by revising paragraph (a)(2) to read as
follows:
Sec. 5001.141 New markets tax credits.
* * * * *
(a) * * *
(2) The provisions of Sec. 5001.127(f) notwithstanding, a lender
that is a CDE or sub-CDE may have an ownership interest in the borrower
provided that each condition specified in paragraphs (a)(2)(i) through
(iii) of this section is met.
(i) The lender does not have an ownership interest in the borrower
prior to the application.
(ii) The lender does not take a controlling interest in the
borrower.
(iii) The lender does not provide equity or take an ownership
interest in a borrower at a level that would result in the lender
owning 20 percent or more interest in the borrower.
* * * * *
0
3. Amend Sec. 5001.202 by revising paragraph (b)(5) to read as
follows:
Sec. 5001.202 Lender's credit evaluation.
* * * * *
(b) * * *
(5) Conditions. This paragraph (b)(5) refers to the general
business environment, including the regulatory environment affecting
the business or industry, and status of the Borrower's industry.
Consideration will be given to items listed in paragraphs (b)(5)(i)
through (ix) of this section and when applicable the lender should
submit supporting documentation (e.g., feasibility study, market study,
preliminary architectural or engineering reports, etc.) in accordance
with Sec. Sec. 5001.304 through 5001.307:
(i) Availability and depth of resource/feedstock market, strength
and duration of purchase agreements and availability of substitutes;
(ii) Analysis of current and future market potential and off-take
agreements, competition, type of project (service, product, or
commodity based);
(iii) Energy infrastructure, availability and dependability,
transportation and other infrastructure, and environmental
considerations;
(iv) Technical feasibility including demonstrated performance of
the technology and integrated processing equipment and systems,
developer system performance guarantees, or technology insurance;
(v) Complexity of construction and completion, terms of
construction contracts, experience and financial strength of the
construction contractor or engineering, procurement, and construction
(EPC) contractor;
(vi) Contracts and intellectual property rights, licenses, permits,
and state and local regulations;
(vii) Creditworthiness of any counterparties, as applicable;
(viii) Industry-related public policy issues; and
(ix) Other criteria that the lender or Agency deems relevant to the
project.
* * * * *
[[Page 7368]]
0
4. Amend Sec. 5001.204 by revising paragraph (b) to read as follows:
Sec. 5001.204 Personal, partnership, and corporate guarantees.
* * * * *
(b) When warranted by an Agency assessment of potential financial
risk, the Agency may require the following:
(1) Guarantees to be secured;
(2) Guarantees from any person or entity owning less than a 20-
percent Interest or membership in the borrower; and
(3) Guarantees from persons whose ownership Interest in the
borrower is held indirectly through intermediate or affiliated
entities.
* * * * *
Sec. 5001.451 [Amended]
0
5. Amend Sec. 5001.451 by redesignating the second paragraph
(b)(3)(xiii) and paragraph (b)(3)(xiv) as paragraphs (b)(3)(xiv) and
(xv), respectively.
Justin Maxson,
Deputy Under Secretary, Rural Development.
[FR Doc. 2022-02710 Filed 2-8-22; 8:45 am]
BILLING CODE 3410-15-P
