Temporary Loan Processing Procedures for Insured Electric Loans
rural-development · Rural Utilities Service · Rule · Published 1997-02-21 · Effective 1997-02-21 · 62 FR 7921
Document
Document number
97-4334
Federal Register citation
62 FR 7921
CFR reference
7 CFR 1710
Type
Rule
Action
Interim final rule with request for comments.
Category
rural-development
Sub-agency
Rural Utilities Service
Publication date
1997-02-21
Effective date
1997-02-21
Abstract
The Rural Utilities Service (RUS) is amending its rule to allow RUS to process loans with a loan period of more than 2 years in two parts when applications substantially exceed available funds. RUS amended its rules in 1995 to lengthen the allowable loan period for insured electric loans from 2 years to 4 years. Since borrowers may now apply for loans to cover construction financing needs for a longer period of time, the average loan has become larger. At the same time, loan authority for FY 1997 is less than for 1996. This situation has produced long delays between the time applications are submitted and the time loans can be approved. RUS believes that this is a temporary situation that will disappear as more and more borrowers get on a longer loan application cycle. The rule is intended to reduce processing delays.