[Federal Register Volume 77, Number 15 (Tuesday, January 24, 2012)]
[Rules and Regulations]
[Pages 3379-3380]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1149]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

Rural Utilities Service

7 CFR Part 4279


Biorefinery Assistance Guaranteed Loans; Correction

AGENCY: Rural Business-Cooperative Service and Rural Utilities Service, 
USDA.

ACTION: Interim rule; correction.

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SUMMARY: The Agency published a rule in the Federal Register on 
February 14, 2011, establishing a guaranteed loan program for the 
development and construction of commercial-scale biorefineries and for 
the retrofitting of existing facilities using eligible technology for 
the development of advanced biofuels. The document inadvertently 
omitted provisions as to what an applicant is to do in the event either 
an appraisal is not completed or a credit rating cannot be obtained at 
the time of application. This document corrects the omissions.

DATES: The correction is effective January 24, 2012.

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
should be directed to Kelley Oehler, (202) 720-6819.

SUPPLEMENTARY INFORMATION:

Need for Correction

    As published, the interim rule requires applicants to submit a 
``credit rating'' with the application. The Agency inadvertently 
omitted an alternative to ``credit rating'' when applicants are unable 
to obtain one at the time of application. Therefore, the Agency is 
correcting the interim rule to redress this situation in Sec. Sec.  
4279.202(d) and 4279.261(b)(6) by allowing the submittal of a ``credit 
assessment'' at the time the application is submitted.
    In addition, the interim rule does not address what an applicant is 
to do in the event an appraisal has not been completed at the time of 
application. Previously, in implementing through a series of notices 
published in the Federal Register, the Agency allowed such applicants 
to submit an estimated appraisal. This allowance was inadvertently left 
out of the interim rule, and the Agency has revised Sec.  4279.261(e) 
accordingly. The credit rating and appraisal would need to be provided 
before issuance of the Loan Note Guarantee.

List of Subjects in 7 CFR Part 4279

    Biorefinery assistance, Loan programs--Business and industry, Rural 
development assistance, Rural areas.
    For the reasons set forth in the preamble, title 7, chapter XLII of 
the Code of Federal Regulations, is amended as follows:

CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES 
SERVICE, DEPARTMENT OF AGRICULTURE

PART 4279--GUARANTEED LOANMAKING

0
1. The authority citation for part 4279 continues to read as follows:

    Authority:  5 U.S.C. 301; 7 U.S.C. 1989, and 7 U.S.C. 1932(a).

Subpart C--Biorefinery Assistance Loans

0
2. Section 4279.202 is amended by revising paragraph (d) to read as 
follows:


Sec.  4279.202  Compliance with Sec. Sec.  4279.1 through 4279.84.

* * * * *
    (d) Independent credit risk analysis. The Agency will require an 
evaluation and either a credit rating or a credit assessment of the 
total project's indebtedness, without consideration for a government 
guarantee, from a nationally-recognized rating agency for loans of 
$125,000,000 or more.
* * * * *

0
3. Section 4279.261 is amended by revising paragraphs (b)(6) and (e) to 
read as follows:


Sec.  4279.261  Application for loan guarantee content.

* * * * *
    (b) * * *
    (6) For loans of $125 million or more, an evaluation and either a 
credit rating or a credit assessment of the total project's 
indebtedness, without consideration for a government guarantee, from a 
nationally-recognized rating agency; and
* * * * *

[[Page 3380]]

    (e) Appraisals. Unless otherwise approved by the Agency, an 
appraisal conducted as specified under Sec.  4279.244.
* * * * *

    Dated: January 11, 2012.
Dallas Tonsager,
Under Secretary, Rural Development.
[FR Doc. 2012-1149 Filed 1-23-12; 8:45 am]
BILLING CODE 3410-XY-P