September 4, 1998

INFORMATIONAL MEMORANDUM: R&D-98-043

TO:      All Reinsured Companies
         All Risk Management Offices

FROM:    Tim B. Witt         /s/ Tim B. Witt
         Deputy Administrator

SUBJECT: Issuance of the 1999 Ineligible Tracking System Handbook

The 1999 Ineligible Tracking System (ITS) Handbook has been updated to clarify various issues
and concerns that have developed during the first year of operation for ITS.   These issues and
concerns were identified through inquiries received by the Risk Management Agency (RMA)
during the year and comments to the draft handbook submitted by the reinsured companies,
National Crop Insurance Services, and RMA offices. 

The major changes were:

  1.     Removed the copy of the ITS regulation.

  2.     Added terms and definitions consistent with the regulation.

  3.     Revised definition of "debt" to include administrative fees and revised affected
         procedures, consistent with the regulation.

  4.     Clarified ineligibility determinations related to bankruptcy.

  5.     Provided instructions regarding pending claims and debts arising under a transfer of
         indemnity rights.

  6.     Specified deadlines for submitting "delete" records and emphasized that the most
         important aspect of ITS is the timely certification of ineligible persons by reinsured
         companies to ITS.

  7.     Updated "example letter" and "debt notification time period" exhibits.

Questions concerning ITS or this handbook should be directed to the Product Development
Division at (816) 926-7387.

DISPOSAL: This memorandum is for purpose of transmitting the attached handbook.  The
disposal date for the memorandum is December 31, 1998.  The attached procedures remain
effective until superseded.

Attachment  - Will be mailed under separate cover