Memorandum for the Secretary of Agriculture, the Attorney General
This directive sets forth the terms and conditions under which the Department of Agriculture will exercise the authority granted to the Secretary of Agriculture pursuant to section 331(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981). That authority permits the Secretary of Agriculture to contract with private attorneys and use Department of Agriculture attorneys for legal services necessary to prosecute and defend any claims arising under subsection (b)(5) of section 331 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981), concerning farmer program loans made by the Farmers Home Administration.
This directive permits, subject to the conditions set forth below, foreclosure, deficiency judgment, and debt collection litigation by private contract attorneys arising from Farmers Home Administration farmer program loans and loan guarantees made pursuant to the Consolidated Farm and Rural Development Act, 7 U.S.C. 1921 et seq. (hereinafter referred to as "actions"). The Department of Agriculture will refer all other matters arising under the Consolidated Farm and Rural Development Act, including all matters in bankruptcy, claims of fraud, and appellate proceedings to the Department of Justice. The Department of Justice will prosecute such referrals expeditiously, and may, in its discretion, with the Department of Agriculture's concurrence, refer any action back to the Department of Agriculture.
The Department of Agriculture agrees that the decision to contract with private attorneys for prosecution of actions will be made only upon its determination that (a) the private attorney will provide competent and cost-effective legal representation and (b) representation by the private attorney will accelerate or improve the process by which the actions are brought to conclusion.
Thirty days prior to initiating the process to contract with a private attorney for prosecution of actions, the Department of Agriculture will inform the appropriate United States Attorney of the intent to contract and the basis for such decision.
Prior to referral by the Department of Agriculture of any action to a private attorney, or Department of Agriculture attorney, the Department of Agriculture shall notify the Department of Justice. The Department of Agriculture shall require that the private counsel or Department of Agriculture attorney promptly provide to the appropriate United States Attorney copies of all significant pleadings, motions, memoranda, orders, and opinions filed in State or Federal court.
Should any legal or policy issue of general importance to the Government arise that pertains to the conduct of actions under this agreement, the Department of Agriculture will ensure that the private contract attorneys or Department of Agriculture attorneys are made aware of guidance issued by the Department of Justice.
If the Department of Justice determines that the interests of the Government are better served through representation by the Department of Justice because there exist any significant factors, such as counterclaims, claims for equitable relief, multiple Federal agency interests, or significant legal or factual issues, of major importance to the Government, the Department of Agriculture will promptly withdraw the action from private counsel or the Department of Agriculture attorney and refer the action to the Department of Justice, for expeditious disposition. The Department of Agriculture will reserve the right to withdraw any case from the control of a private attorney.
The Department of Agriculture will fulfill its obligations under this directive through its Office of General Counsel. The Department of Justice will fulfill its obligations under this directive through the Civil Division or such other office as the Attorney General may direct.
The Department of Agriculture will provide to the Department of Justice a quarterly report tracking the status of all actions within the scope of this directive being pursued by the Department of Agriculture attorneys and private contract attorneys, including summary statistics to permit evaluation of this directive.
The Department of Justice will provide to the Department of Agriculture a quarterly report tracking the status of all actions within the scope of this directive being pursued by the Department of Justice, including summary statistics to permit evaluation of this directive.
WILLIAM J. CLINTON
NOTE: This memorandum was released by the Office of the Press Secretary on May 12.
William J. Clinton, Memorandum on Use of Private Attorneys by the Department of Agriculture Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/219819