Pre-Loan Procedures for Electric Loans

The Rural Utilities Service (RUS) is issuing a minor amendment to its pre-loan procedures that will clarify that use of a conventional utility indenture as a security instrument for loans to power supply borrowers is permissible. This amendment will give these borrowers and RUS the flexibility to address the complex issues surrounding power supply loans in the rapidly changing electric industry. The rule will also enhance loan security and, by conforming more closely to private lending practice, allow easier access to private sector financing. In the proposed rules section of this Federal Register, RUS is proposing approval of and soliciting comments on this action. If adverse comments are received on this action, RUS will withdraw this final rule prior to its effective date and address the comments recieved in response to this action in a final rule on the related proposed rule, which is published in the proposed rules section of this Federal Register. A second public comment period will not be held. Parties interested in commenting on this action should do so at this time.