7 CFR 1786.31 - Application procedure.

§ 1786.31 Application procedure.
Applications to make a prepayment pursuant to this subpart shall be submitted to RUS on such forms as RUS may prescribe in the following manner:
(a) Application. Each borrower desiring to make a prepayment pursuant to this subpart shall submit an application to RUS. No application from a borrower will be accepted by RUS prior to the commencement of the application period. An application shall not be deemed submitted to RUS until it is received by RUS, and the “Date Received” has been inscribed on the Notice of Intent to Prepay the Federal Financing Bank by an authorized official of RUS. Incomplete applications may be returned to the borrower at the discretion of RUS and thereafter must be resubmitted in order to be processed. To be considered complete, the application should include the following:
(1) “Notice of Intent to Prepay the Federal Financing Bank” in the form specified in § 1786.33 hereof;
(2) A listing of each FFB loan advance to be prepaid by loan designation, RUS note number, RUS account number, advance date, maturity date, original amount, outstanding balance, and interest rate;
(3) Evidence that the borrower meets the qualification provisions of § 1786.28(a) of these regulations;
(4) The certification set forth in part A of the Notice of Intent to Prepay the Federal Financing Bank executed by the chief executive officer of the borrower;
(5) In the event that a borrower submits a prepayment application which proposes to utilize a portion of the financially distressed borrowers' reserve, a certification signed by the chief executive officer of the system to the effect that the borrower is either (i) in default or near default on interest or principal payments due on loans made or guaranteed under the RE Act, and is making a good faith effort to increase rates and reduce costs to avoid or mitigate default; or (ii) participating in a work out or debt restructuring plan with RUS, either as the borrower being restructured or as a borrower providing assistance as part of the work out or restructuring and stating why the borrower is in default or near default.
(b) Election of Method of Prepayment. Prior to requesting RUS to schedule a settlement date, the borrower shall (1) elect whether it will use a private loan, internally generated funds, or a combination of a private loan and internally generated funds to make the prepayment, by completing part C of its Notice of Intent to Prepay the Federal Financing Bank; (2) specify in part C of the Notice of Intent to prepay the Federal Financing Bank a date after which a prepayment closing may be scheduled; (3) if appropriate, execute the certification set forth in part C of the Notice of Intent to Prepay the Federal Financing Bank; and (4) return a completed copy of the Notice of Intent to Prepay the Federal Financing Bank to the RUS area office.
(c) Final Documentation. All documentation in connection with a proposed prepayment made pursuant to this subpart shall have been submitted to RUS in final form, no later than 5 business days prior to the settlement date agreed to by the borrower and RUS. To be considered complete, the final documentation shall include the following material:
(2) In the event that a borrower proposes to utilize a private loan in connection with a prepayment or a portion of a prepayment,
(i) Evidence, in form and substance satisfactory to RUS, that the borrower has an irrevocable commitment from the lender to close the private loan on the settlement date at an interest rate that meets the requirements of § 1786.28(c)(1);
(ii) Evidence that the lender meets the qualification provisions of § 1786.28(b);
(iii) Evidence that the private loan meets the qualification provisions of § 1786.28(c); and
(iv) The final documentation for the private loan;
(3) Estimate of fees, and expenses, including any taxes, in connection with the prepayment transaction;
(4) A certified copy of a resolution of the board of directors of the borrower approving the certification cited above and requesting RUS approval of the prepayment.
(5) In the case of financially distressed borrowers, evidence in form and substance satisfactory to the Administrator that the benefits of prepayment will not be used to reduce rates and that any Federal or state regulatory body having jurisdiction over the borrower's rates has acknowledged its awareness of this requirement;
(6) In the event that borrower is unable to deliver final documentation or the evidence specified in accordance with, § 1786.31(c), RUS may reschedule the settlement date at its discretion.
(Approved by the Office of Management and Budget under control number 0572-0088)

Title 7 published on 2014-01-01

no entries appear in the Federal Register after this date.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.


United States Code
U.S. Code: Title 7 - AGRICULTURE

§ 901 - Short title

§ 902 - General authority of Secretary of Agriculture

§ 903 - Authorization of appropriations

§ 904 - Loans for electrical plants and transmission lines

§ 905 - Fees for certain loan guarantees

§ 906 - Funding for administrative expenses

§ 906a - Use of funds outside the United States or its territories prohibited

§ 907 - Acquisition of property pledged for loans; disposition; sale of pledged property by borrower

§ 908 - Repealed.

§ 909 - Administration on nonpolitical basis; dismissal of officers or employees for violating provision

§ 910 - Repealed.

§ 911 - Acceptance of services of Federal or State officers; application of civil service laws; expenditures for supplies and equipment

§ 911a - Repealed.

§ 912 - Extension of time for repayment of loans

§ 912a - Rescheduling and refinancing of loans

§ 913 - Definitions

§ 914 - Separability

§ 915 - Purchase of financial and credit reports

§ 916 - Criteria for loans

§ 917 - Prohibition on restricting water and waste facility services to electric customers

§ 918 - General prohibitions

§ 918a - Energy generation, transmission, and distribution facilities efficiency grants and loans in rural communities with extremely high energy costs

§ 918b - Acquisition of existing systems in rural communities with high energy costs

§ 918c - Rural and remote communities electrification grants

§ 921 - Congressional declaration of policy

§ 921a - Policy of financing of rural telephone program

§ 921b - Policy of expansion of markets for debentures

§ 922 - Loans for rural telephone service

§ 923 - State regulation of telephone service

§ 924 - Definition of telephone service and rural area

§ 925 - Loan feasibility

§ 926 - Certain rural development investments by qualified telephone borrowers not treated as dividends or distributions

§ 927 - General duties and prohibitions

§ 928 - Prompt processing of telephone loans

§ 930 - Congressional declaration of policy

§ 931 - Rural Electrification and Telephone Revolving Fund

§ 931a - Level of loan programs under Rural Electrification and Telephone Revolving Fund

§ 932 - Liabilities and uses of Rural Electrification and Telephone Revolving Fund

§ 933 - Moneys in the Rural Electrification and Telephone Revolving Fund

§ 934 - Authorized financial transactions; interim notes; purchase of obligations for resale; sale of notes and certificates; liens

§ 935 - Insured loans; interest rates and lending levels

§ 936 - Guaranteed loans; accommodations and subordination of liens; interest rates; assignability of guaranteed loans and related guarantees

§ 936a - Prepayment of loans

§ 936b - Sale or prepayment of direct or insured loans

§ 936c - Refinancing and prepayment of FFB loans

§ 936d - Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodations

§ 936e - Administrative prohibitions applicable to certain electric borrowers

§ 936f - Substantially underserved trust areas

§ 937 - Loans from other credit sources

§ 938 - Full faith and credit of the United States

§ 939 - Loan terms and conditions

§ 940 - Refinancing of rural development loans

§ 940a - Repealed.

§ 940b - Use of funds

§ 940c - Cushion of credit payments program

7 U.S. Code § 801 to 833 - Repealed.

§ 940d - Limitations on authorization of appropriations

§ 940e - Expansion of 911 access

§ 940f - Extension of period of existing guarantee

§ 940g - Electric loans for renewable energy

§ 940h - Bonding requirements

§ 941 - Telephone Bank

§ 942 - General powers

§ 943 - Special provisions governing telephone bank as a Federal agency until conversion of ownership, control, and operation

§ 944 - Governor of telephone bank; functions, powers, and duties

§ 944a - Publication of rural telephone bank policies and regulations

§ 945 - Board of directors

§ 946 - Capitalization

§ 947 - Borrowing power; telephone debentures; issuance; interest rates; terms and conditions; ratio to paid-in capital and retained...transactions of the United States; exclusion of transactions from budget totals

§ 948 - Lending power

§ 949 - Telephone bank receipts; availability for obligations and expenditures

§ 950 - Conversion of ownership, control, and operation of telephone bank

§ 950a - Liquidation or dissolution of telephone bank

§ 950b - Borrower net worth

§ 6941 - Under Secretary of Agriculture for Rural Development

§ 6941a - Coordinator for Chronically Underserved Rural Areas

§ 6942 - Rural Utilities Service

§ 6943 - Rural Housing and Community Development Service

§ 6944 - Rural Business and Cooperative Development Service

§ 6945 - Rural Development Disaster Assistance Fund

Statutes at Large
Public Laws