[Federal Register Volume 59, Number 80 (Tuesday, April 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9967]
[[Page Unknown]]
[Federal Register: April 26, 1994]
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DEPARTMENT OF AGRICULTURE
Rural Electrification Administration
7 CFR Part 1700
General Information; Delegation of Authority
AGENCY: Rural Electrification Administration, USDA.
ACTION: Final rule.
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SUMMARY: The Rural Electrification Administration (REA) hereby revises
and codifies its Delegation of Authority to reflect several changes in
REA organizational structure and functions. These descriptions of REA's
organization and methods by which its functions are channeled and
determined are being issued as a final rule as guidance to the public.
EFFECTIVE DATE: This rule is effective April 26, 1994.
FOR FURTHER INFORMATION CONTACT: F. Lamont Heppe, Jr., Program Support
Staff, Rural Electrification Administration, room 2234-S, U.S.
Department of Agriculture, 14th and Independence Avenue, SW.,
Washington, DC 20250-1500, Telephone: (202) 720-0736.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule has been determined to be not significant for
purposes of Executive Order 12866 and therefore has not been reviewed
by OMB.
Regulatory Flexibility Act Certification
The Administrator of REA has determined that this final rule will
not have a significant economic impact on a substantial number of small
entities as defined in the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.).
National Environmental Policy Act Certification
The Administrator of REA has determined that this final rule will
not significantly affect the quality of the human environment as
defined by the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.). Therefore, this action does not require an environmental
impact statement or assessment.
Catalog of Federal Domestic Assistance
The programs described by this final rule are listed in the 1991
Catalog of Federal Domestic Assistance Programs under No. 10.850, Rural
Electrification Loans and Loan Guarantees; No. 10.851, Rural Telephone
Loans and Loan Guarantees; No. 10.852, Rural Telephone Bank Loans; and
No. 10.854, Rural Economic Development Loans and Grants. This catalog
is available on a subscription basis from the Superintendent of
Documents, the United States Government Printing Office, Washington, DC
20402.
Executive Order 12372
This final rule is excluded from the scope of Executive Order
12372, Intergovernmental Consultant. A Notice of Final rule entitled
Department Programs and Activities Excluded from Executive Order 12372
(50 FR 47034) exempts REA electric loans and loan guarantees from
coverage under this Order.
Information Collection and Recordkeeping Requirements
This final rule contains no information collection or recordkeeping
provisions requiring the Office of Management and Budget approval under
the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).
This final rule revises and reflects the current organizational
structure of REA and methods of by which its functions are channeled.
Accordingly, pursuant to this rule's being issued as a final rule
without providing the public with an opportunity to comment since this
is a ``. . . rule of the agency organization, procedure, or practice .
. .''
List of Subjects in 7 CFR Part 1700
Electric power, Freedom of information, Loan programs--
communication, Loan programs--energy, Organization and functions
(Government agencies), Rural areas, Telephone.
Therefore, REA amends part 1700 of 7 CFR chapter XVII as follows:
PART 1700--GENERAL INFORMATION
1. The authority citation for 7 CFR part 1700 continues to read as
follows:
Authority: 7 U.S.C. 901 et seq.; Delegation of Authority by the
Secretary of Agriculture, 7 CFR 2.23; Delegation of Authority by the
Under Secretary of Agriculture for Small Community and Rural
Development, 7 CFR 2.72; 7 U.S.C. 1921 et seq.; 5 U.S.C. 301, 552; 7
CFR 1.1-1.16.
2. Subparts D through L are added to read as follows:
Subpart D--Delegations of Authority; General
Sec.
1700.40 Exercise of delegated authority.
1700.41 Persons serving in acting capacities.
1700.42 Persons serving as acting Administrator.
1700.43 Persons serving as acting Assistant Administrator.
1700.44 Contracts approved on behalf of the Administrator.
1700.45-1700.59 [Reserved]
Subpart E--Delegations of Authority; Agency Issuances and Certain
Correspondence
1700.60 Agency issuances.
1700.61 Agency publications control officer.
1700.62-1700.69 [Reserved]
Subpart F--Delegations; Authorities Reserved by the Administrator
1700.70 General.
1700.71 Rural economic development loan and grant and distance
learning and medical link grant programs.
1700.72 Electric program.
1700.73 Telephone program.
1700.74-1700.89 [Reserved]
Subpart G--Delegations of Authority; Loan Review Committees
1700.90 General.
1700.91 Senior loan review committee.
1700.92 Assistant Administrator's loan committee.
1700.93 Rural economic development recommendation committee.
1700.94-1700.99 [Reserved]
Subpart H--Delegations of Authority; Rural Economic Development,
Program Support, and Borrower Accounting Activities
1700.100 General.
1700.101 Deputy Administrator.
1700.102 Assistant Administrator--Economic Development and
Technical Services.
1700.103 Director--Rural Development Assistance Staff.
1700.104 Chief, Financing Branch--Rural Development Assistance
Staff.
1700.105 Director, Borrower Accounting Division.
1700.106 Chief, Technical Accounting and Auditing Staff.
1700.107 Chiefs, Area Accounting Branches.
1700.108 Field accountants.
1700.109 Director--Program Support Staff.
1700.110-1700.119 [Reserved]
Subpart I--Delegations of Authority; Electric Program
1700.120 General.
1700.121 Deputy Administrator.
1700.122 Assistant Administrator--Electric.
1700.123 Deputy Assistant Administrator--Electric.
1700.124 Regional Directors.
1700.125 Chiefs, Regional Engineering Branches.
1700.126 Chiefs, Area Operations Branches.
1700.127 Director--Power Supply Division.
1700.128 Chief, Operations Branch, Power Supply Division.
1700.129 Chiefs, Power Engineering Branches, Power Supply Division.
1700.130 General Field Representatives--Electric.
1700.131 Director, Electric Staff Division.
1700.132 Technical Standards Committees ``A'' and ``B''--Electric.
1700.133-1700.139 [Reserved]
Subpart J--Delegations of Authority; Telephone Program
1700.140 General.
1700.141 General delegations.
1700.142 Deputy Administrator.
1700.143 Assistant Administrator--Telephone.
1700.144 Deputy Assistant Administrator--Telephone.
1700.145 Regional Directors.
1700.146 Chiefs, Regional Engineering Branches--Telephone.
1700.147 Chiefs, Regional Operations Branches--Telephone.
1700.148 General Field Representatives--Telephone.
1700.149 Director--Telecommunications Standards Division.
1700.150 Technical Standards Committees ``A'' and ``B''--Telephone.
1700.151-1700.159 [Reserved]
Subpart K--Delegations of Authority; Financial Services
1700.160 General.
1700.161 Program Advisor, Financial Services Staff.
1700.162-1700.169 [Reserved]
Subpart L--Delegations of Authority; Financial Operations Activities
1700.170 General.
1700.171 Deputy Administrator.
1700.172 Director, Financial Operations Division.
1700.173 Chief, Loans Receivable Branch.
1700.174-1700.189 [Reserved]
Subpart D--Delegations of Authority; General
Sec. 1700.40 Exercise of delegated authority.
(a) Unless specifically reserved, or otherwise delegated, the
delegations of authority contained in subparts D through L of this part
include the authority to take any action or execute any document deemed
necessary and proper to the discharge of such responsibilities. In the
exercise of authority delegated in subparts D through L of this part,
all applicable REA policies, regulations, and procedures should be
followed. All delegations previously made are superseded.
(b) No delegation of authority by the Administrator or other person
shall preclude the Administrator or other person from exercising any of
the authority so delegated.
Sec. 1700.41 Persons serving in acting capacities.
Incumbents delegated authority in subparts D through L of this part
are authorized to designate a person to act for them as necessary,
except that a Regional Director or the Director, Power Supply Division
may not redelegate authority to approve loans, loan guarantees or lien
accommodations, and related actions as set forth in Secs. 1700.124(a),
1700.127(a) and 1700.145(a). If an incumbent of a position to whom
delegations are made in subparts D through L of this part is absent or
is unable to carry out such delegations, the person designated
authority to act for the incumbent and exercise the authority conferred
by such delegations. Such designations shall be in accordance with any
instruction issued by the incumbent's supervisor.
Sec. 1700.42 Persons serving as acting Administrator.
The following persons are authorized, in descending order, to act
for the Administrator only in his or her absence, sickness,
resignation, or death: Deputy Administrator, Assistant Administrator--
Electric, Assistant Administrator--Telephone, Assistant Administrator--
Economic Development and Technical Services. That is, if the first
person on the list is also absent, sick, has resigned, or is dead, the
second person on the list is authorized to act for the Administrator
and so on down the list. Persons on this list may not redelegate the
authority to act for the Administrator. The Administrator may in his/
her discretion in writing, on a case-by-case basis, delegate authority
to act as Administrator in his/her absence outside of this specified
order.
Sec. 1700.43 Persons serving as acting Assistant Administrator.
(a) Electric and telephone programs. The Deputy Assistant
Administrator in each program is authorized to act for the respective
Assistant Administrator in the absence, sickness, resignation or death
of that Assistant Administrator. The Deputy Assistant Administrators
may not redelegate this authority.
(b) Assistant Administrator--Economic Development and Technical
Services. (1) The Directors of the Rural Development Assistance Staff,
Borrower Accounting Division and the Program Support Staff are
authorized to act for the Assistant Administrator--Economic Development
and Technical Services in his or her absence according to the following
schedule:
------------------------------------------------------------------------
Director of Months
------------------------------------------------------------------------
Rural Development Assistance Staff. January, April, July, October.
Borrowers Accounting Division...... February, May, August, November.
Program Support Staff.............. March, June, September, December.
------------------------------------------------------------------------
(2) If a particular Director is absent, sick, has resigned or is
dead during a scheduled month, the delegation will revolve back to the
preceding month. These Directors may not redelegate this authority.
Sec. 1700.44 Contracts approved on behalf of the Administrator.
(a) Nonstandard contracts. Prior to the approval or the execution
of the following documents, the Office of the General Counsel (OGC)
shall comment as to any legal matters concerning such nonstandard
contracts:
(1) Contracts for engineering services, architectural services,
construction, and power supply that include a substantive deviation
from the standard form contract approved by OGC; and
(2) Other documents involving legal matters of concern to the
approving official.
(b) Signature. All contract approvals shall be signed:
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DEPARTMENT OF AGRICULTURE
(Name and Title)
For the Administrator
Secs. 1700.45-1700.59 [Reserved]
Subpart E--Delegations of Authority; Agency Issuances and Certain
Correspondence
Sec. 1700.60 Agency issuances.
Except as may be specifically delegated from time to time to the
Deputy Administrator, or others, all authority is reserved by the
Administrator to approve and issue regulations and other information
published in the Federal Register, bulletins, informational
publications, staff instructions concerning Agency administrative
matters and those affecting more than one program, and unnumbered
memoranda (mailings to borrowers in more than one program and all REA
staff). Signature authority is also reserved by the Administrator for
written responses to Members of Congress, Governors, State Legislators,
Federal Agency heads or Cabinet officials, as well as other controlled
correspondence for Agency response. Additionally, signature authority
is reserved by the Administrator for Agency mass mailings which include
but are not limited to mailings to accountants, engineers, and
consultants.
Sec. 1700.61 Agency publications control officer.
The Deputy Administrator is designated the Agency Publications
Control Officer.
Secs. 1700.62-1700.69 [Reserved]
Subpart F--Delegations; Authorities Reserved by the Administrator
Sec. 1700.70 General.
Authority for all matters not specifically delegated in subparts D
through L of this part, or by other written delegation, is reserved to
the Administrator, including, without limitation, the following
authorities reserved in this subpart.
Sec. 1700.71 Rural economic development loan and grant and distance
learning and medical link grant programs.
Approval of the following:
(a) Applications for loans or grants when all conditions for such
approval have been met.
(b) All zero-interest loans and grants.
(c) Any modifications in the method of carrying out loan purposes,
or in the amount of applications selected and loans or grants approved.
(d) Extension of principal and interest repayments for rural
development purposes.
Sec. 1700.72 Electric program.
(a) Approval of the following loans, loan guarantees, lien
accommodations or subordinations:
(1) All discretionary hardship loans.
(2) All insured loans, loan guarantees, and lien accommodations or
subordinations to finance operating costs.
(3) All loans, loan guarantees, and lien accommodations or
subordinations of more than $15,000,000 for distribution and power
supply borrowers.
(4) All loans, loan guarantees, and lien accommodations or
subordinations for distribution borrowers that are members of a power
supply borrower that is in default of its obligations to the Government
or that is currently assigned to the Financial Services Staff, unless
otherwise determined by the Administrator.
(5) All insured loans, loan guarantees, and lien accommodations or
subordinations that require an Environmental Impact Statement.
(6) All certifications and findings required by the RE Act or other
applicable laws and regulations, the placing and releasing of
conditions precedent to the advance of funds, and all mortgages, loan
contracts or other necessary documents relating to the authorities
reserved in paragraph (a) of this section.
(b) And execution of all loan contracts, mortgages or other
documents in connection with loans, loan guarantees and lien
accommodations approved by the Administrator.
(c) Approval of the following for unpaid and outstanding loans and
loan guarantees:
(1) Rescission of loans or termination of loan guarantee
commitments when the amount of the rescission or termination is more
than $15,000,000.
(2) Requests to extend the time period for advancing loan funds if:
(i) The borrower is delinquent in payments on loans made or
guaranteed by REA or in litigation that may affect loan security; or
(ii) The request does not fully comply with the requirements
specified in applicable REA regulations.
(3) Extension of time of prepayment principal and interest pursuant
to Section 12 of the RE Act, for borrowers in default or currently
assigned to the Financial Services Staff.
(4) Agreements, plans, arrangements, recommendations to settle
debt, or other actions affecting a borrower's financial or other
obligations to the Government through the Administrator of REA for
loans, loan guarantees, or other financial obligations except as may be
specifically delegated to the Financial Services Staff.
(5) Loan budget adjustments (transfers or reclassifications) when
approval is for:
(i) Changes in generation facilities that are subject to a power
survey or certification by REA;
(ii) Any proposed change of more than $15,000,000;
(iii) Any proposed operating costs.
(d) Approval of the following for borrower facilities,
organization, operations, or corporate status:
(1) Agreements for the merger or consolidation of borrowers.
(2) Power surveys or certifications by REA involving changes in
generation facilities.
(3) Contracts for the acquisition of plant-in-place of more than
$15,000,000 and related financial transactions.
(4) Approval, in amounts of $25,000,000 or more, of:
(i) The use of general funds; or
(ii) Sales or transfers of property and related releases of lien.
(5) Equity development plans and amendments to equity development
plans submitted by borrowers:
(i) As part of an application for any loan and loan guarantee that
requires approval of the Administrator;
(ii) By any borrower whose equity as a percentage of total assets,
is less than 10 percent at the time the plan is submitted, or whose
equity is predicted to drop below 10 percent during the 10-year period
of the plan.
(6) Assumptions of debt.
Sec. 1700.73 Telephone program.
(a) Approval of the following loans, loan guarantees, lien
accommodations or subordinations:
(1) All loans, loan guarantees, and lien accommodations or
subordinations to finance operating costs.
(2) All loans, loan guarantees, or lien accommodations or
subordinations for more than $15,000,000.
(3) Loans and loan guarantees with acquisition costs for more than
$5,000,000.
(4) Loans and loan guarantees containing funds to refinance
outstanding debt amounts for more than $5,000,000.
(b) All loan contracts, mortgages and other documents to be
executed in connection with loans and loan guarantees approved by the
Administrator.
(c) Approval of the following for unpaid and outstanding loans and
loan guarantees:
(1) Extension of time for payment of principal and interest
pursuant to Section 12 of the RE Act, for borrowers in default.
(2) Agreements, plans, arrangements, recommendations to settle
debt, or other actions affecting a borrower's financial or other
obligations to the Government acting through the Administrator of REA
for loans, loan guarantees or other financial obligations.
(3) Complete releases of lien and satisfaction when a borrower has
paid in full its indebtedness.
(4) Sales and transfers of property for more than $5,000,000 and
related releases of lien.
Secs. 1700.74-1700.89 [Reserved]
Subpart G--Delegations of Authority; Loan Review Committees
Sec. 1700.90 General.
To assist in carrying out the authorities which are reserved or
delegated in subparts D through L of this part, the roles of the
following committees in this subpart are recognized.
Sec. 1700.91 Senior loan review committee.
The Senior Loan Review Committee, appointed by the Administrator,
shall review and make recommendations to the Administrator on all
electric and telephone loans, loan guarantees, and lien accommodations
or subordinations whose approval has been reserved by the
Administrator. The committee shall be chaired by the Administrator and
include the Assistant Administrator--Electric (AAE), Assistant
Administrator--Telephone (AAT), and such other members as the
Administrator may appoint.
Sec. 1700.92 Assistant Administrator's loan committee.
Both the electric and telephone programs shall have Assistant
Administrator's Loan Committees (AALC), consisting of the Regional
Directors or Acting Regional Directors of the respective programs as
well as additional members appointed by the appropriate Assistant
Administrator. The AALC shall be chaired by either the appropriate
Assistant Administrator or Deputy Assistant Administrator. The AALC
shall meet as required to review, analyze, and concur in
recommendations for actions to be taken for all loan application
requests, loan guarantee applications, and lien accommodations or
subordinations. The recommending official may not vote.
(a) Assistant Administrators and Regional Directors may approve
loans, loan guarantees, or lien accommodations or subordinations under
Sec. 1700.124 or Sec. 1700.146 only after the AALC has concurred with
such actions.
(b) An Assistant Administrator may, in their sole discretion,
forward a recommendation for a loan, loan guarantee or other financing
action to the Senior Loan Committee for its consideration.
Sec. 1700.93 Rural economic development recommendation committee.
The Administrator may appoint a recommendation committee for the
purpose of reviewing loan and grant recommendations.
Secs. 1700.94-1700.99 [Reserved]
Subpart H--Delegations of Authority; Rural Economic Development,
Program Support, and Borrower Accounting Activities
Sec. 1700.100 General.
The following delegations of authority in this subpart are made by
the Administrator.
Sec. 1700.101 Deputy Administrator.
The Deputy Administrator in conformance with applicable regulations
and REA policy is hereby delegated authority to exercise all
authorities conferred upon other persons in Sec. 1700.102.
Sec. 1700.102 Assistant Administrator--Economic Development and
Technical Services.
The Assistant Administrator--Economic Development and Technical
Services in conformance with applicable regulations and REA policy is
delegated authority to exercise all authorities conferred upon others
in Secs. 1700.103 through 1700.109, approval of staff instructions
affecting only the Rural Development Program, and unnumbered memoranda
(mailings to two or more borrowers) sent to rural development borrowers
or grant recipients.
Sec. 1700.103 Director--Rural Development Assistance Staff.
The Director--Rural Development Assistance Staff in conformance
with applicable regulations and REA policy is delegated authority to
approve for the Rural Economic Development Loan and Grant Programs and
Distance Learning and Medical Link Grant Programs the following:
(a) Releases of loan and grant funds including the approval of all
agreements and documents between the REA borrower and the ultimate
recipient.
(b) Cancellation of applications that have not been selected for
approval by the Administrator.
(c) Rescission of loan and grant funds.
(d) Extension of the time period for the REA borrower to meet the
prerequisites to the advance of funds and the period to disburse the
funds.
(e) In addition, all authorities conferred upon other persons in
Sec. 1700.104.
Sec. 1700.104 Chief, Financing Branch--Rural Development Assistance
Staff.
The Chief, Rural Development Assistance Staff--Financing Branch in
conformance with applicable regulations and REA policy is delegated
authority to approve and execute for the Rural Economic Development
Loan and Grant and Distance Learning and Medical Link Grant Programs
the following:
(a) Reports of vouchers released; and
(b) Notice to Financial Operations Division (FOD) authorizing the
advance or release of funds.
Sec. 1700.105 Director, Borrower Accounting Division.
The Director, Borrower Accounting Division in conformance with
applicable regulations and REA policy is delegated authority to:
(a) Approve a certified public accountant (CPA) for borrower audits
of its financial statements.
(b) Take actions concerning the selection or change of a borrower's
CPA (7 CFR 1773.4).
(c) Serve as the REA liaison within the Office of Inspector General
(OIG) for all borrower irregularities.
(d) In addition, execute all authorities conferred upon other
persons in Secs. 1700.106 through 1700.108.
Sec. 1700.106 Chief, Technical Accounting and Auditing Staff.
The Chief, Technical Accounting and Auditing Staff in conformance
with Federal regulations and REA policy is delegated authority to
approve or execute:
(a) Actions concerning accounting policies, procedures, standards,
interpretations of Financial Accounting Standards Board (FASB)
issuances or other technical accounting issues; and
(b) Actions concerning the application of generally accepted
auditing standards to borrowers' accounts.
Sec. 1700.107 Chiefs, Area Accounting Branches.
The Chiefs, Area Accounting Branches in conformance with Federal
regulations and REA policy are delegated authority to approve or
execute:
(a) Statement of condition of borrower's records; and
(b) In addition, all authorities conferred upon other persons in
Sec. 1700.108.
Sec. 1700.108 Field Accountants.
The Field Accountants in conformance with applicable regulations
and REA policy are delegated authority to approve or execute:
(a) Propriety of the disbursements of loan and equity funds as
required by loan contract provisions and REA policy.
(b) Adequacy of borrowers' accounting systems and related records.
Sec. 1700.109 Director--Program Support Staff.
The Director--Program Support Staff in conformance with applicable
regulations and REA policy is delegated authority to encumber loan
funds for REA and RTB loans.
Secs. 1700.110-1700.119 [Reserved]
Subpart I--Delegations of Authority; Electric Program
Sec. 1700.120 General.
The following delegations of authority are made by the
Administrator to the electric program.
Sec. 1700.121 Deputy Administrator.
The Deputy Administrator in conformance with applicable regulations
and REA policy is delegated authority to approve or execute for the
electric program:
(a) Agreements or contracts for management or operations services
between telephone and electric borrowers.
(b) Federal Register notices announcing the availability of final
Environmental Impact Statements and the approval of REA's final
Environmental Impact Statements as well as Findings of No Significant
Impact (FONSI).
(c) In addition, all authorities conferred upon other persons in
Sec. 1700.122.
Sec. 1700.122 Assistant Administrator--Electric.
The Assistant Administrator--Electric in conformance with
applicable regulations and REA policy is delegated authority to approve
or execute for the electric program:
(a) Approval of the following loans and necessary documents, except
for those approvals reserved for the Administrator in Sec. 1700.72(a):
(1) Approval of loans of $15,000,000 or less for entities not
previously financed by REA.
(2) Loans, loan guarantees, and lien accommodations or
subordinations for distribution and power supply borrowers in amounts
from $10,000,000 to $15,000,000.
(b) The following actions for unpaid and outstanding loans:
(1) Rescission of loans or termination of loan guarantee
commitments when the amount of the rescission or termination is
$15,000,000 or less.
(2) Requests to extend the period for advancing loan funds in any
amount except for:
(i) Requests from borrowers that are delinquent in their loan
payments to REA or in payments guaranteed by REA or in litigation that
may affect loan security.
(ii) Requests that do not comply with the requirements specified in
applicable REA regulations.
(iii) Cases where the Administrator has further reserved this
authority.
(3) Extension of time for payment of principal and interest
pursuant to section 12 of the RE Act for other than Energy Conservation
Resources Loans, except for requests from borrowers in default or
currently assigned to FSS.
(4) Loan budget adjustments (transfers or reclassifications) except
when such adjustments would provide funds for:
(i) Changes in generation facilities that are subject to a power
survey certification.
(ii) Any proposed change for more than $15,000,000.
(iii) Any proposed operating costs.
(5) Imposition of and release of special controls on loan fund
advances when the borrower is delinquent in payments on REA loans or
guarantees by REA or the borrower is in litigation that may affect loan
security.
(6) Questions arising from the interpretations or clarifications of
the application of 7 CFR 1721.1 to individual borrower circumstances.
(c) The following changes in borrowers' facilities, organization or
corporate status:
(1) Changes in transmission facilities not identified to REA at the
time of loan approval that are subject to a power survey or
certification by REA involving the use of construction or general funds
of $15,000,000 or less.
(2) Power survey or certification by REA involving changes in
transmission facilities.
(3) Contracts for the acquisition of plant-in-place of $15,000,000
or less and related financial transactions.
(4) Determination of the proper categorization of electric project
proposals for the purpose of environmental review.
(5) Execution of documents relating to inter-borrower assumption of
indebtedness.
(6) Approval in amounts of less than $25,000,000 of:
(i) The use of general funds; or
(ii) Sales or transfers of property and related releases of lien.
(7) Approval or disapproval of the selection of a manager or
attorney by an electric borrower.
(d) Memoranda to electric staff or to two or more electric
borrowers.
(e) Approval of staff instructions affecting only the Electric
Program.
(f) Waivers of borrower requirements pursuant to 7 CFR part 1710,
Subpart E--Power Requirements Studies.
(g) All authorities conferred upon other persons in Sec. 1700.123.
Sec. 1700.123 Deputy Assistant Administrator--Electric.
The Deputy Assistant Administrator--Electric in conformance with
applicable regulations and REA policy is delegated authority to approve
or execute for the electric program:
(a) Any contracts for the acquisition of plant-in-place for
$10,000,000 or less and related financial transactions.
(b) The following matters concerning borrowers' facilities,
organization or corporate structure:
(1) Changes in borrowers' corporate status.
(2) Power supply contracts and agreements including wholesale
power, fuel, interconnections and wheeling agreements, participation
agreements, lease agreements for facilities or properties, power sales
agreements with non-RE Act beneficiaries, and integrated transmission
agreements between REA borrowers and non-borrowers, any of which
require a construction expenditure of more than $10,000,000.
(c) Approvals required under the mortgage to retire capital credits
or make other cash distributions in the following cases: (1) Any
distribution borrower that does not meet the following conditions:
(i) The retirement will not reduce total equity to less than 25
percent of total assets and other debits;
(ii) The oldest capital credits outstanding before the retirement
are at least 10 years old where the retirement method is first-in,
first-out, or the retirement is not more than 7 percent of all
outstanding capital credits before the retirement where another method
of retirement, authorized by the bylaws, is used; and
(iii) TIER and DSC ratios exceed mortgage minimum, i.e., the
average of the highest two of the last 3 years exceeds 1.5 for TIER and
1.25 for DSC.
(2) Any power supply borrower.
(d) All authorities conferred upon other persons in Secs. 1700.124
and 1700.131.
Sec. 1700.124 Regional Directors.
Regional Directors in conformance with applicable regulations and
REA policy are delegated authority to approve or execute for the
electric program's distribution borrowers:
(a) The following loans, loan guarantees, lien accommodations, and
documents:
(1) Insured loans, loan guarantees, and lien accommodations or
subordinations in amounts of less than $10,000,000, except for those
approvals reserved for the Administrator in Sec. 1700.72(a), or those
reserved for the Assistant Administrator--Electric under
Sec. 1700.122(a).
(2) All certifications and findings required by the RE Act or other
applicable laws and regulations, the imposing and releasing of
conditions precedent to the advance of loan funds, and all mortgages,
loan contracts or other documents relating to the delegations set forth
in paragraph (a)(1) of this section.
(b) The following matters for unpaid and outstanding loans:
(1) Rescission of loans or termination of loan guarantee
commitments when the amount of the rescission or termination is
$10,000,000 or less, except for discretionary or operating loans.
(2) Requests to extend the period for advancing loan funds when the
amount of unadvanced loan funds is $10,000,000 or less, except for:
(i) Requests from borrowers that are delinquent in their loan
payments to REA or in loans guaranteed by REA or in litigation that may
affect loan security.
(ii) Requests that do not fully comply with the requirements
specified in REA regulations.
(iii) Cases where the Administrator has further reserved this
authority.
(3) Basis date agreements for all approved requests to extend the
period for advancing loan funds.
(4) Principal deferments under Section 12 of the RE Act for Energy
Resource Conservation Loans and Rural Economic Development Investments.
(5) Loan budget adjustments (reclassifications or transfers) except
when such adjustments would provide funds for:
(i) Changes in generation and transmission facilities that are
subject to a power survey or certification by REA.
(ii) Any change exceeding $10,000,000.
(iii) Any operating costs.
(6) Advance of loan funds under ``stop orders'' and ``special
conditional agreements'' when the conditions have been met, except when
the borrower is delinquent in its loan payments to REA, or its loans
guaranteed by REA, or when the borrower is in litigation which may
affect loan security or the Office of the Administrator has reserved
this authority.
(7) Imposition of special controls on the further advance of loan
funds when it has been determined that loan feasibility may be
jeopardized.
(8) Complete releases of lien and satisfaction in cases where a
borrower has repaid its indebtedness in full.
(9) Approval of prepayments in accordance with 7 CFR part 1786 and
all related documents.
(c) Matters concerning borrower facilities, organization, or
corporate status:
(1) Agreements between electric borrowers for the operation of
facilities.
(2) Management and operating agreements between electric borrowers
and subsidiary organizations engaged in rural development activities.
(3) Sales and leases of borrowers' capital assets involving
transactions in amounts of $5,000,000 or less and the related releases
of lien.
(4) Use of general funds by a borrower for plant additions in the
amount of $5,000,000 or less, except for facilities subject to power
supply surveys or certification by REA.
(5) Annual review of loan security of borrowers.
(6) Action concerning certain retirements of patronage capital and
other cash distributions which meet the following conditions:
(i) The retirement will not reduce total equity to less than 25
percent of total assets and other debits;
(ii) The oldest capital credits outstanding before the retirement
are at least 10 years old where the retirement method is first-in,
first-out, or the retirement is not more than 7 percent of all
outstanding capital credits before the retirement where another method
of retirement, authorized by the bylaws, is used; and
(iii) TIER and DSC ratios exceed mortgage minimum, i.e., the
average of the highest two of the last 3 years exceeds 1.5 for TIER and
1.25 for DSC.
(7) Approval as a majority note holder of employment contracts
between a borrower and its general manager.
(8) Waiver of specified defects in title to property obtained by
borrowers.
(9) All equity development plans and amendments to equity
development plans except those requiring approval of the Administrator.
(10) Any contracts for the acquisition of plant-in-place of
$5,000,000 or less and related financial transactions.
(d) Letters certifying borrowing eligibility for non-borrower
electric cooperatives seeking financing from the Bank for Cooperatives.
(e) In addition, all authorities conferred upon other persons in
Secs. 1700.125, 1700.126 and 1700.130.
Sec. 1700.125 Chiefs, Regional Engineering Branches.
The Chiefs, Regional Engineering Branches in conformance with
applicable regulations and REA policy are delegated authority to
approve or execute for the electric program with respect to
distribution and transmission facilities for distribution borrowers:
(a) The following matters concerning unpaid and outstanding loans
and loan guarantees:
(1) Financial requirements and expenditure statements when all
conditions precedent to the advance of loan funds have been met, no
litigation is pending pertaining to the loan or loan guarantee, the
borrower is not delinquent in its loan payments to REA or in loans
guaranteed by REA, and the Office of the Administrator has not reserved
this authority.
(2) Report of vouchers released.
(3) Concurrent loan fund requisitions.
(b) The following matters concerning technical specifications, and
borrower facilities and organization, except for matters concerning
generation facilities:
(1) Selection by a borrower of an architect; plans and
specifications, work orders, and contracts for architectural services
for the construction of headquarters, garage, and warehouse facilities
requiring REA approval, and final inventory documents and payments to
contractors and architects.
(2) Selection by a borrower of an engineer and contracts for
engineering services in cases requiring REA approval.
(3) Contracts for construction and right-of-way clearing and for
the purchase of substation sites and Headquarters facility sites with
clear title and special types of equipment requiring REA approval.
(4) Final inventory documents and payments to contractors and
engineers.
(5) Use of nonstandard drawings, materials, and equipment.
(6) Technical engineering studies for transmission, load
management, microwave, Supervisory Control and Data Acquisition (SCADA)
and other facilities requiring REA approval.
(7) Borrowers' selection of a method of construction.
(8) Plans and specifications for construction, preliminary design
data and plans, and profile sheets.
(9) Negotiation in lieu of competitive bidding of borrowers'
contracts.
(10) Award of contracts for construction of purchase of material
and equipment with fewer than three bids.
(11) Long-range engineering plans.
(12) Borrowers' environmental reports.
(13) Amendments to all types of power supply contracts or
agreements including extensions of time to existing contracts and
superseding contracts with no significant changes; the addition of new
delivery points; and modification of existing delivery points between
distribution borrowers and non-REA borrower power suppliers, except
where facilities are subject to a power survey or certification by REA.
(14) Final statements of engineering fees requiring REA approval,
except for generation facilities.
(c) In addition, all other authorities of an engineering nature
pertaining to distribution and transmission conferred upon other
persons in Sec. 1700.130.
Sec. 1700.126 Chiefs, Area Operations Branches.
The Chiefs, Area Operations Branches in conformance with applicable
regulations and REA policy are delegated authority to approve or
execute for the electric program's distribution borrowers:
(a) The following matters with unpaid and outstanding distribution
loans.
(1) Affidavits, certificates, filings, and confirmation statements
with respect to the recording, filing or renewing of security
instruments, including financing statements under the Uniform
Commercial Code of the applicable state.
(2) Municipal and county franchises, licenses, ordinances, and
permits to construct or operate facilities obtained by borrowers as
required by its security instruments.
(3) Notice of clearance of REA loan documents.
(b) Matters concerning borrower facilities, organization, or
corporate status:
(1) Sales and leases of borrower's capital assets involving
transactions in amounts of $500,000 or less, except for facilities
subject to power supply surveys or certification by REA.
(2) Partial releases of lien, associated with sales of a borrower's
capital assets, involving transactions in amounts of $500,000 or less.
(3) Approval of large retail power contracts which have not been
delegated to the General Field Representatives--Electric.
Sec. 1700.127 Director--Power Supply Division.
The Director--Power Supply Division in conformance with applicable
Regulations and REA policy is delegated authority to approve or execute
for the electric program's power supply borrowers:
(a) Approval of the following loans, loan guarantees, and loan
documents:
(1) Approval of insured loans, loan guarantees, and lien
accommodations or subordinations in amounts of less than $10,000,000
for power supply borrowers, except for those approvals reserved for the
Administrator in Sec. 1700.72(a).
(2) All certifications and findings required by the RE Act or other
applicable laws and regulations, the placing and releasing of
conditions precedent to the advance of funds, and all mortgages, loan
contracts or other documents relating to the delegations set forth in
paragraph (a)(1) of this section.
(b) The following matters for unpaid and outstanding loans:
(1) Rescission of loans or termination of loan guarantee
commitments when the amount of the rescission or termination is
$10,000,000 or less, except for discretionary or operating loans.
(2) Requests to extend the period for advancing loan funds when the
amount of unadvanced loan funds is $10,000,000 or less, except for:
(i) Requests from borrowers that are delinquent in their loan
payments to REA, loans guaranteed by REA or in litigation that may
affect loan security.
(ii) Requests that do not fully comply with the requirements
specified in REA regulations.
(iii) Cases where the Administrator has further reserved this
authority.
(3) Execution of basis date agreements for all approved requests to
extend the period for advancing loan funds.
(4) Loan budget adjustments (reclassifications or transfers) except
when such adjustments would provide funds for:
(i) Changes in generation and transmission facilities that are
subject to a power survey or certification by REA.
(ii) Any proposed change for more than $10,000,000.
(iii) Any proposed operating costs.
(5) Advance of loan funds under ``stop orders'' and ``special
conditional agreements'' when the conditions have been met, except when
the borrower is delinquent in its loan payments to REA, loan guaranteed
by REA or when the borrower is in litigation which may affect loan
security or the Administrator has reserved this authority.
(6) Imposition of special controls on the advance of loan funds
when it has been determined that loan feasibility may be jeopardized.
(7) Approval of prepayments in accordance with 7 CFR part 1786 and
all related documents.
(8) Complete releases of lien when a borrower has paid in full its
indebtedness.
(9) Approval of mortgages for refinancing transactions, regardless
of amount.
(c) Matters concerning borrower facilities, organization, or
corporate status:
(1) Agreements between electric borrowers for operation of
facilities.
(2) Management and operating agreements between electric borrowers
and subsidiary organizations engaged in rural development activities.
(3) Sales and leases of borrowers' capital assets involving
transactions in amounts of $10,000,000 or less and the related releases
of lien.
(4) Use of general funds by a borrower for plant additions in the
amount of $10,000,000 or less, except for facilities subject to power
supply surveys or certification by REA.
(5) Annual review of loan security of power supply borrowers.
(6) Approval as a majority noteholder of employment contracts
between a borrower and its general manager.
(7) Wholesale power electric rates in connection with power supply
contracts.
(8) Waiver of specified defects in title to property obtained by
power supply borrowers.
(9) Interconnection Agreements, Wheeling Agreements, non firm Power
Sales or Purchase Agreements requiring a construction expenditure of
$10,000,000 or less.
(10) Firm Power Sale or Purchase Agreements with a duration of 3
years or less, which require a construction expenditure of $10,000,000
or less.
(11) Participation agreements with other utilities on jointly owned
facilities for new transmission, subtransmission or distribution
facilities requiring an expenditure of $10,000,000 or less.
(12) Participation agreements with other utilities on jointly owned
facilities for generation modifications to existing plant requiring an
expenditure of $10,000,000 or less.
(13) Any contracts for the acquisition of plant-in-place of
$5,000,000 or less and related financial transactions.
(d) In addition, all authorities conferred upon other persons in
Secs. 1700.128 and 1700.129.
Sec. 1700.128 Chief, Operations Branch, Power Supply Division.
The Chief, Operations Branch, Power Supply Division in conformance
with applicable Regulations and REA policy is delegated authority to
approve or execute for the electric program:
(a) The following matters dealing with outstanding power supply
loans.
(1) Affidavits, certificates, filings, and continuation statements
with respect to the recording, filing or renewing of mortgages and
deeds of trust, including financing statements under the Uniform
Commercial Code of the applicable state.
(2) Municipal and county franchises, licenses, ordinances, and
permits to construct or operate facilities obtained by borrowers as
required by the mortgage.
(3) Notice of Clearance of REA loan documents.
(4) Approval of large retail power contracts.
(5) Sales, transfers, and partial releases of liens involving sales
of borrowers' capital assets with a value of $500,000 or less.
(b) The following matters concerning unpaid and outstanding loans:
(1) Financial requirements and expenditure statements when all
conditions precedent to the advance of loan funds have been met, no
litigation is pending pertaining to the loan, the borrower is not
delinquent in its loan payments to REA, loans guaranteed by REA and the
Administrator has not reserved this authority.
(2) Report of vouchers released.
(3) Concurrent loan fund requisitions.
Sec. 1700.129 Chiefs, Power Engineering Branches, Power Supply
Division.
The Chiefs, Power Engineering Branches, Power Supply Division in
conformance with applicable Regulations and REA policy are delegated
authority to approve or execute for the electric program for electric
power supply borrowers:
(a) The following matters concerning technical specifications, and
borrower facilities and organizational issues for power supply
borrowers:
(1) Selection by a borrower of an engineer or architect; plans and
specifications, work orders, preliminary design data, plans and profile
sheets, and contracts for architectural and all engineering services
for facilities requiring REA approval, and final inventory documents
and payments to contractors and architects.
(2) Borrowers' selection of method of construction.
(3) Final statements of engineering fees.
(4) Purchase of generating plant sites.
(5) Technical engineering studies for generation facilities.
(6) Contracts for the construction and purchase of materials and
equipment for generation and transmission facilities.
(7) Use of nonstandard specifications, drawings, materials and
equipment.
(8) Negotiation in lieu of competitive bidding of borrowers'
contracts.
(9) Award of contracts for construction or purchase of materials
and equipment with fewer than three bids.
(10) Amendments to power supply contracts or agreements including
extensions of time to existing contracts; the addition of new delivery
points; and modification of existing delivery points, except where
facilities are subject to a power survey or certification by REA.
(11) Contracts for construction and right-of-way clearing and for
the purchase of substation sites with clear title and special types of
equipment requiring REA approval.
(12) Long-range engineering plans.
(13) Borrower environmental reports.
(14) Interchange agreements and similar agreements where no
construction is required.
(15) Interconnection agreements where no construction is required.
(16) Construction Work Plan (CWP) approval for G&T borrowers
(b) The following matters pertaining to the generation facilities
of distribution borrowers:
(1) Selection by a borrower of an engineer or architect; plans and
specifications, work orders, preliminary design data, plans, and
contracts for architectural and all engineering services for facilities
requiring REA approval, and final inventory documents and payments to
contractors and architects.
(2) Borrowers' selection of method of construction.
(3) Final statements of engineering fees.
(4) Purchase of generating plant sites.
(5) Technical engineering studies for generation facilities.
(6) Contracts for the construction and purchase of materials and
equipment for generation facilities.
(7) Use of nonstandard specifications, drawings, materials and
equipment.
(8) Negotiation in lieu of competitive bidding of borrowers'
contracts.
(9) Award of contracts for construction or purchase of materials
and equipment with fewer than three bids.
(10) The borrower's generation portion of the CWP.
Sec. 1700.130 General Field Representatives--Electric.
The General Field Representatives--Electric in conformance with
applicable regulations and REA policy are delegated authority to
approve or execute for the electric program:
(a) Cost estimates and facilities for distribution borrowers' large
power applications.
(b) Use of armless or narrow profile construction for distribution
in scenic areas or where right-of-way is restricted.
(c) Certificates of completion for distribution and transmission
contract construction.
(d) Power requirements and irrigation studies for distribution
borrowers:
(1) Without generation facilities;
(2) With an ownership or lease interest in REA financed generation
facilities of less than 40 MW nameplate rating as set forth in ``REA
Financed Generating Plants,'' Information Publication (IP) 200-2, or
its equivalent. This publication is available from Publications and
Directives Management Branch, Administrative Services Division, Rural
Electrification Administration, room 0180, South Building, U.S.
Department of Agriculture, Washington, DC 20250-1500;
(3) With an ownership or lease interest in REA financed generation
facilities of 40 MW or more, provided the borrower has not received REA
financial assistance for generation capacity of 40 MW or more within 15
years of the borrower's request for REA approval of its Power
Requirements Study; or
(4) That are members of a power supply borrower when the member
study is not prepared as part of the power supply borrower's Power
Requirements Study.
(e) Amendments to or revisions of previously approved power
requirements or irrigation studies for distribution borrowers which are
members of a power supply borrower when the amendment or revision is
for support of a new loan application to be submitted by the member
prior to REA's approval of a new power-supply Power Requirements Study.
(f) Distribution facilities in construction work plans including
amendments and voltage drop, sectionalizing and power factor studies
solely for distribution borrowers.
(g) Long-range financial forecasts prepared for distribution
borrowers.
(h) Approval, for distribution borrowers, of large retail power
contracts for which the borrower's investment in plant facilities does
not exceed 10 percent of total utility plant except for distribution
borrowers which are members of an REA financed power supply borrower
which is in default under its loan repayments or whose debt has been
restructured.
Sec. 1700.131 Director, Electric Staff Division.
The Director, Electric Staff Division in conformance with
applicable regulations and REA policy is delegated authority to approve
the following:
(a) Power Requirements Studies for:
(1) All power supply borrowers.
(2) All members of a power supply borrower when the members'
studies were prepared as part of the power supply borrower's Power
Requirements Study.
(3) Distribution borrowers with an ownership or lease interest in
generating facilities of 40 MW or more nameplate rating as set forth in
REA Financed Generating Plants (IP 200-2), or its equivalent, provided
the borrower has received REA financial assistance for generating
capacity of 40 MW or more within 15 years of the borrower's request for
REA approval of its Power Requirements Study.
(b) Approval of Integrated Resource Plans for power supply and
distribution systems and Demand Side Management plans for distribution
systems.
Sec. 1700.132 Technical Standards Committees ``A'' and ``B''--
Electric.
The Technical Standards Committees ``A'' and ``B''--Electric in
conformance with applicable regulations and REA policy are delegated
authority to approve for the electric program:
(a) Technical Standards Committee ``A''--Electric accepts or
rejects all proposals of standard specifications, drawings, material
and equipment submitted for acceptance for use in REA financed electric
systems.
(b) Technical Standards Committee ``B''--Electric reviews and makes
a final decision on cases referred to it by either Committee A or by
appeal from a sponsor from an adverse decision made by Committee A.
Secs. 1700.133-1700.139 [Reserved]
Subpart J--Delegations of Authority; Telephone Program
Sec. 1700.140 General.
The delegations in this subpart relating to the REA telephone
program also apply to the Rural Telephone Bank (RTB).
Sec. 1700.141 General delegations.
The following delegations of authority for the telephone program in
this subpart are made by the Administrator.
Sec. 1700.142 Deputy Administrator.
The Deputy Administrator in conformance with applicable regulations
and REA policy is delegated authority to approve or execute for the
telephone program:
(a) Agreements or contracts covering management or operations
services between telephone and electric borrowers.
(b) Federal Register notices announcing the availability of final
Environmental Impact Statements and the approval of REA's final
Environmental Impact Statements as well as Findings of No Significant
Impact (FONSI).
(c) In addition, all authorities conferred upon other persons in
Sec. 1700.143.
Sec. 1700.143 Assistant Administrator--Telephone.
The Assistant Administrator--Telephone in conformance with
applicable regulations and REA policy is delegated authority to approve
or execute for the telephone program:
(a) Loans, loan guarantees and lien accommodations or
subordinations of between $7,500,000 and $15,000,000 except for those
reserved for the Administrator in Sec. 1700.73(a).
(b) Loans and loan guarantees with acquisition costs between
$2,000,000 and $5,000,000.
(c) Loans and loan guarantees with refinancing amounts between
$2,000,000 and $5,000,000.
(d) Approval of the following matters concerning unpaid and
outstanding loans:
(1) Basis date agreements or agreements for extension of advances
and related recommendations;
(2) Budget adjustments for loans made by the Administrator and loan
budget adjustments amounting to more than $2,000,000.
(e) Approval of the following concerning borrower facilities,
organization or corporate status:
(1) Field trial installations of telephone materials and equipment
involving more than $250,000;
(2) Approval of the purchase price of properties to be acquired by
telephone borrowers when the purchase price exceeds REA approved
appraisal value;
(3) Contracts between $2,000,000 and $5,000,000 for acquisition by
telephone borrowers of existing facilities in place;
(4) Approval of sales of property and related partial releases of
lien in amounts greater than $500,000 up to $5,000,000;
(5) Approval of the investment in an affiliate which exceeds the
allowable distribution level of more than $50,000;
(6) Action concerning disapproval of the selection of a manager or
an attorney by a telephone borrower;
(7) Agreements for the merger or consolidation of REA telephone
borrowers; and
(8) Waiver of mortgage provisions for payments of dividends or
other cash distributions, where such excess payments or distributions
exceed $50,000 in any year.
(f) Memoranda to telephone staff or to two or more telephone
borrowers.
(g) Reports and invoices for more than $100,000 under contracts
covering research services performed for REA in connection with the
telephone program.
(h) Approval of staff instructions affecting only the Telephone
Program.
(i) All authorities conferred upon other persons in Sec. 1700.144.
Sec. 1700.144 Deputy Assistant Administrator--Telephone.
The Deputy Assistant Administrator--Telephone in conformance with
applicable regulations and REA policy is delegated authority to approve
or execute for the telephone program:
(a) Revisions of the borrower's capital structure by amendment to
its charter or bylaws or by issuance of additional shares of stock.
(b) In addition, all authorities conferred upon other persons in
Secs. 1700.145 and 1700.149.
Sec. 1700.145 Regional Directors.
The Regional Directors in conformance with applicable regulations
and REA policy are delegated authority to approve or execute for the
telephone program:
(a) The following loans, loan guarantees, and lien accommodations
or subordinations except for those approvals reserved by the
Administrator in Sec. 1700.73(a):
(1) Loans, loan guarantees and lien accommodations or
subordinations of $7,500,000 or less.
(2) Loans and loan guarantees with acquisition costs of less than
$2,000,000.
(3) Loans and loan guarantees containing refinancing for less than
$2,000,000.
(b) The following loan documents and related actions:
(1) Interim financing requests.
(2) Special loan contract conditions, except for changes in such
conditions for loans made by the Administrator or the Assistant
Administrator.
(3) Waivers of contract conditions for release of funds.
(4) Loan designs.
(5) Characteristics letters to loan applicants setting forth loan
requirements proposed for inclusion in pending loan recommendations.
(6) Loan contracts and security instruments, except for loans made
by the Administrator.
(c) The following matters concerning outstanding loans:
(1) Telephone loan fund releases.
(2) Telephone loan rescissions.
(3) Loan budget adjustments, except for:
(i) Loans approved by the Administrator.
(ii) Adjustments greater than $2,000,000.
(4) The placement of special controls on the advance of loan funds
when it has been determined that loan security may be affected, except
when the Administrator has further reserved this authority.
(5) Advance of loan funds under ``special conditional agreements''
and special controls when the conditions have been met, except when the
Administrator has reserved this authority.
(6) Lien accommodations or subordinations granted to other parties
by REA or the RTB for amounts of less than $7,500,000.
(7) Principal deferments under Section 12 of the RE Act for Rural
Economic Development Investments.
(d) The following matters concerning borrower facilities,
organization, and corporate status:
(1) Increases in salaries and other compensations to be paid to
borrowers' officers, directors and managers when REA approval is
required under the mortgage.
(2) Borrowers' requests to waive competitive bidding procedures.
(3) Award of contracts (bid approval) for construction and central
office equipment.
(4) Selection by telephone borrowers of force account engineering
and construction.
(5) Waiver of specified special defects in title and rights-of-way.
(6) Field trial installations of telephone materials and equipment
involving $250,000 or less, jointly with Director, Telecommunications
Standards Division (TSD).
(7) Waiver of mortgage provisions relating to a borrower's payment
of dividends or other cash distributions when such excess payments or
distributions do not exceed $50,000 in any year.
(8) Approval of the investment in an affiliate of general funds
that is within the allowable distribution level.
(9) Approval of sales or transfers of property and related partial
releases of lien of more than $100,000 up to $500,000.
(10) Contracts for acquisition by telephone borrowers of existing
facilities in place of less than $2,000,000.
(11) Approval of employment contracts with the borrower's general
manager.
(12) Management and operating agreements. When the borrowers
involved are in more than one region, both directors must approve.
(13) Use of materials, equipment, and specifications not yet
accepted by REA.
(14) Letters certifying borrowing eligibility for non-borrower
telephone organizations seeking financing from the Bank for
Cooperatives.
(15) In addition, all authorities conferred upon other persons in
Secs. 1700.146, 1700.147, 1700.148.
Sec. 1700.146 Chiefs, Regional Engineering Branches--Telephone.
The Chiefs, Regional Engineering Branches--Telephone in conformance
with applicable regulations and REA policy are delegated authority to
approve or execute for the telephone program:
(a) The following matters for unpaid and outstanding loans:
(1) Financial Requirement Statements, REA Form 481; and
(2) Construction loan budget adjustments except those involving
change of loan budget purposes or new or revised administrative
findings.
(b) The following matters concerning technical specifications and
borrower facilities and organization:
(1) The selection by a borrower of an engineer or an architect and
contracts for engineering and architecture services;
(2) Final inventory documents and payments to contractors and
engineers;
(3) Statements of final engineering fees;
(4) Borrowers' proposals and cost estimates for force account
engineering and construction;
(5) Plans and specifications for central office equipment, radio,
and microwave equipment, garage and warehouse buildings and for
nonstandard central office equipment buildings;
(6) All major construction contracts. Major construction shall be
defined as any project estimated to cost more than $250,000 in total;
(7) Borrowers' proposals for purchase of additions and
modifications to central office equipment;
(8) Borrowers' Environmental Reports; and
(9) Borrowers' Outside Plant Layouts.
(c) In addition, all authorities conferred upon other persons in
Sec. 1700.148.
Sec. 1700.147 Chiefs, Regional Operations Branches--Telephone.
The Chiefs, Regional Operations Branches--Telephone in conformance
with applicable regulations and REA policy are delegated authority to
approve or execute for the telephone program:
(a) The following matters concerning unpaid and outstanding loans:
(1) Affidavits, certificates, filings, and continuation statements
with respect to the recording, filing or renewing of mortgages and
deeds of trust, including financing statements under the Uniform
Commercial Code of the applicable state after clearance when necessary
by OGC;
(2) Municipal and county franchises obtained by borrowers from the
standpoint of acceptability for REA loans;
(3) State regulatory body orders and approvals from the standpoint
of acceptability for REA loans;
(4) Special legal fees to be paid by borrowers from loan funds; and
(5) Non-construction loan budget adjustment items, except those
involving legal or policy questions or new or revised administrative
findings.
(b) The following matters concerning borrower organization or
corporate or capital structure:
(1) Certificates regarding a borrower's incorporation and Articles
of Incorporation and Bylaws and changes in a borrower's corporate name;
(2) Forms of stock and equity certificates;
(3) Borrowers' cash sales of material and equipment, excluding
property in place, when approval is required and releases of lien and
all other documents relating to such sales;
(4) Borrowers' insurance and fidelity coverage;
(5) Borrowers' lease agreements except for agreements and contracts
between borrowers and affiliates;
(6) Approval, in amounts up to $100,000 of sales of property and
related partial releases of lien; and
(7) Purchase or lease of real estate by borrowers.
(c) In addition, all authorities conferred upon other persons in
Sec. 1700.148.
Sec. 1700.148 General Field Representatives--Telephone.
The General Field Representatives--Telephone in conformance with
applicable regulations and REA policy are delegated authority to
approve or execute for the telephone program:
(a) Plans and specifications for REA standard Form 772, central
office buildings, or borrower specific standardized central office
building plans and specifications, repeaters, standardized lightwave
equipment, subscriber carrier and trunk carrier. Also, outside plant
plans and specifications that conform to an approved design.
(b) Outside plant contracts up to $250,000 and all other
construction and equipment contracts less than $100,000.
(c) Results of the Area Coverage Survey.
Sec. 1700.149 Director--Telecommunications Standards Division.
The Director--Telecommunications Standards Division in conformance
with applicable regulations and REA policy is delegated authority to
approve or execute for the telephone program:
(a) Reports and invoices up to $100,000 submitted under contracts
covering research services performed for REA in connection with the
telephone program.
(b) Field trial installations of telephone materials and equipment
involving $250,000 or less, jointly with the appropriate regional
director.
Sec. 1700.150 Technical Standards Committees ``A'' and ``B''--
Telephone.
The Technical Standards Committees ``A'' and ``B''--Telephone in
conformance with applicable regulations and REA policy are delegated
authority to approve for the telephone program:
(a) Technical Standards Committee ``A''--Telephone accepts or
rejects all proposals of standard specifications, drawings, material
and equipment submitted for acceptance for use on REA financed
telephone systems.
(b) Technical Standards Committee ``B''--Telephone reviews and
makes a final decision on cases referred to it by Committee ``A'' or by
appeal from a sponsor from an adverse decision of Committee ``A''.
Secs. 1700.151-1700.159 [Reserved]
Subpart K--Delegations of Authority; Financial Services
Sec. 1700.160 General.
The following delegations of authority in this subpart are made by
the Administrator to the Financial Services Staff for assigned loan
servicing projects.
Sec. 1700.161 Program Advisor, Financial Services Staff.
The Program Advisor, Financial Services Staff in conformance with
applicable regulations and REA policy is delegated authority to approve
and execute for the Financial Services Staff (FSS):
(a) Approval in amounts of less than $25,000,000 for:
(1) The use of general funds; or
(2) Sales and transfers of property and related releases of lien.
(b) Disapproval of the selection of a manager or attorney by a
borrower.
(c) Power supply contracts and agreements including wholesale
power, fuel, interconnections, wheeling, participation agreements,
lease agreements for facilities or properties, and power sales
agreements with non-RE Act beneficiaries.
(d) Wholesale power rates.
(e) Contracts for the construction and purchase of materials and
equipment.
(f) Retail rate contracts between borrowers and others relating to
large power installations.
(g) Additional authorities, as specifically delegated by the
Administrator, necessary to effectively resolve troubled borrower
situations.
(h) Authority to execute or testify, consistent with USDA
Departmental Regulations, on behalf of REA as follows:
(1) Affidavits and certificates concerning borrowers assigned to
FSS.
(2) Testify on behalf of the Agency before regulatory bodies or
courts on matters pertaining to borrowers assigned to the FSS.
Sec. 1700.162-1700.169 [Reserved]
Subpart L--Delegations of Authority; Financial Operations
Activities
Sec. 1700.170 General.
The following delegations of authority in this subpart are made by
the Administrator to the Financial Operations Division (FOD).
Sec. 1700.171 Deputy Administrator.
The Deputy Administrator in conformance with applicable regulations
and REA policy is delegated authority to approve or execute for FOD all
authorities conferred upon other persons in this subpart.
Sec. 1700.172 Director, Financial Operations Division.
The Director, Financial Operations Division in conformance with
applicable regulations and REA policy is delegated authority to approve
and execute for FOD:
(a) Standard Form 1151, Nonexpendable Transfer Authorization, for
the following activities related to loans made to the Administrator of
REA by the Secretary of Treasury under authority of section 3(a) and
304 of the RE Act:
(1) Advances of principal on notes executed by the Administrator;
and
(2) Payment of principal on loans made by the Administrator.
(b) Letters to the Federal Financing Bank (FFB) granting REA
approval to requests from borrowers, which are concurred in by the
applicable Regional Director in the Electric or Telephone program for:
(1) Extensions of short-term maturity dates of advances on the
specified maturity date;
(2) Prepayment of short-term maturities, including prepayment for
the purpose of extending to long-term prior to the scheduled maturity
date; and
(3) Prepayments of long-term maturities.
(c) Endorsements or assignments on promissory notes or other
collateral pledged by borrowers as security for loans, as may be
necessary in connection with the return of such documents to borrowers,
due to the payment of the obligations in full or in order that the
borrowers may institute legal action thereon or in connection therewith
and the transmittal to the borrowers of such promissory notes or other
collateral pledged by the borrower.
(d) Cancellation or endorsement due to payment on the borrowers'
notes which have been paid in full or which are to be returned to
borrowers by reason of the cancellation of such notes resulting from
the receipt of REA of funding, renewal or substituted notes and
transmittal to the borrower.
(e) Actions concerning borrower loan accounting, computations,
procedures and policies.
(f) Liaison responsibility with the Federal Financing Bank, the
Department of Treasury.
(g) Liaison responsibility with General Accounting Office (GAO).
(h) In addition, all authorities conferred upon other persons in
Sec. 1700.173.
Sec. 1700.173 Chief, Loans Receivable Branch.
The Chief, Loans Receivable Branch in conformance with applicable
regulations and REA policy is delegated authority to approve and
execute for FOD:
(a) Preparation and forwarding of Energy Resource Conservation
(ERC) loan documents to the Office of the General Counsel (OGC).
(b) Preparation and forwarding of basis date agreements to OGC.
Sec. 1700.174--1700.189 [Reserved]
Dated: April 19, 1994.
Bob J. Nash,
Under Secretary, Small Community and Rural Development.
[FR Doc. 94-9967 Filed 4-25-94; 8:45 am]
BILLING CODE 3410-15-P