[Federal Register: February 12, 1999 (Volume 64, Number 29)]
[Notices]               
[Page 7404]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12fe99-137]



[[Page 7404]]



DEPARTMENT OF AGRICULTURE

Farm Service Agency

 
Notice of Eligibility Criteria for Certified and Preferred 
Lenders

AGENCY: Farm Service Agency, USDA.

ACTION: Notice of Eligibility Criteria.

-----------------------------------------------------------------------

SUMMARY: This notice sets forth the volume requirements and loss rates 
necessary for lenders to be eligible for the Farm Service Agency's 
Certified Lender Program (CLP) and the Preferred Lender Program (PLP).

EFFECTIVE DATE: February 12, 1999.

FOR FURTHER INFORMATION CONTACT: Steven Ford, Sr. Loan Officer, Farm 
Service Agency, Farm Loan Programs, Loan Making Division, Stop 0522, 
1400 Independence Avenue, SW, Washington, DC 20250-0522, telephone 
(202) 720-1632; email Steve.Ford@usda.gov.

SUPPLEMENTARY INFORMATION:

Programs Affected

10.406  Farm Operating Loans
10.407  Farm Ownership Loans

Background

    The Farm Service Agency (FSA) is modifying its CLP and also 
establishing a PLP through a Final Rule published elsewhere in this 
issue of the Federal Register. The CLP and PLP are programs which 
provide qualifying lenders additional authorities and streamlined 
procedures under the Agency's guaranteed farm loan program.
    To qualify for CLP or PLP status, lenders must meet certain 
eligibility criteria. Eligibility criteria can be found in 7 CFR 
762.106 (b) and (c). Included in the eligibility criteria is the 
requirement for lenders to have made a certain number of Agency 
guaranteed farm loans and for the lender's loss rate to be less than a 
maximum.
    With this notice, the Agency is setting the requirements as 
follows:
    (a) 7 CFR 762.106(b)(5) requires CLP lenders to have closed a 
minimum number of loans. This is set at a minimum of 10 Agency 
guaranteed farm loans ever and five of such loans in the past two 
years.
    (b) 7 CFR 762.106(b)(2) requires that CLP lenders not exceed a 
maximum loss rate. This rate is set at 7.00 percent.
    (c) 7 CFR 762.106(c)(3) requires PLP lenders to have closed a 
minimum number of loans. This is set at a minimum of 30 Agency 
guaranteed farm loans in the past three years.
    (d) 7 CFR 762.106(c)(4) requires PLP lenders not exceed a maximum 
loss rate. This rate is set at 3.00 percent.
    The Agency may periodically change these eligibility criteria 
through a Federal Register notice.

    Dated: January 15, 1999.
Carolyn B. Cooksie,
Acting Administrator, Farm Service Agency.
[FR Doc. 99-3257 Filed 2-8-99; 4:57 pm]
BILLING CODE 3410-05-P