Telephone loans: loan policies and procedures; loan contract and mortgage documentation reform initiative,

[Federal Register: August 18, 1998 (Volume 63, Number 159)]

[Proposed Rules]

[Page 44175]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr18au98-23]

Proposed Rules Federal Register

This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules.

[[Page 44175]]

DEPARTMENT OF AGRICULTURE

Rural Telephone Bank

7 CFR Part 1610

Rural Utilities Service

7 CFR Part 1744

Review and Revision of Rural Utilities Service Telecommunications Program and the Rural Telephone Bank Loan Documents

AGENCY: Rural Utilities Service and Rural Telephone Bank, USDA.

ACTION: Advance notice of proposed rulemaking.

SUMMARY: The Rural Utilities Service (RUS) and Rural Telephone Bank (RTB) are working on a project to update the form and content of the mortgages and loan documents relating to telecommunications borrowers. This project is part of the continuing effort to streamline and simplify regulations and to reduce burdens on borrowers. Suggestions are invited on these documents.

DATES: Comments must be received by RUS or carry a postmark or equivalent by September 17, 1998.

ADDRESSES: Written comments should be addressed to F. Lamont Heppe, Jr., Director, Program Development And Regulatory Analysis, U.S. Department of Agriculture, Rural Utilities Service, 1400 Independence Avenue, SW., Washington, DC 20250-1522. RUS requires a signed original and 3 copies of all comments (7 CFR 1700.4).

FOR FURTHER INFORMATION CONTACT: F. Lamont Heppe, Jr., Director, Program Development and Regulatory Analysis, U.S. Department of Agriculture, Rural Utilities Service, Room 4034 South Bldg., 1400 Independence Avenue, SW., Washington, DC 20250-1522. Telephone: 202- 720-0736. FAX: 202-720-4120. E-mail: fheppe@rus.usda.gov

SUPPLEMENTARY INFORMATION: As part of their continuing effort to streamline and simplify regulations and to reduce burdens on borrowers, the Rural Utilities Service (RUS) and Rural Telephone Bank (RTB) intend to revise and reform their loan contract and mortgage documents. The reform initiative will have the following objectives:

1. Preserve and enhance RUS loan security; 2. Provide borrower flexibility into the 21st Century; 3. Improve RUS response to a rapidly changing competitive and regulatory environment; 4. Streamline RUS controls and approvals; 5. Minimize the differences between RUS loan documents for cooperatives and commercial entities; 6. Improve the ability of borrowers to respond to a changing marketplace; 7. Reduce RUS processing delays and speed the release of funds; 8. Improve the use of the Automated Legal Practice System (ALPS) which prepares most loan documents; 9. Where feasible and prudent, conform lending criteria with that of private financial institutions; 10. Avoid the traditional principle of ``one size fits all.''

Comments are invited on this project, especially on the above objectives. Target for completion and publication is early November. Consequently, we have selected a relatively short period for receipt of comments.

Dated: August 11, 1998. Wally Beyer, Administrator, Rural Utilities Service and Governor, Rural Telephone Bank.

[FR Doc. 98-22022Filed8-17-98; 8:45 am]

BILLING CODE 3410-15-P