7 CFR 1786.32 - Settlement procedure.

§ 1786.32 Settlement procedure.
(a) General. Settlements in connection with prepaying FFB loans pursuant to this subpart shall be conducted in accordance with the provisions of this section.
(b) Settlement date. The prepayment will be settled and if a private loan is utilized, the guarantee will be delivered, on a settlement date agreed upon by the borrower and RUS. Prior to scheduling a settlement date for a borrower's prepayment pursuant to this subpart, RUS shall have received the material specified in § 1786.31(b).
(c) Place of settlement. All settlements will take place in Washington, DC, at a location of the borrower's choosing; provided however, if more than one settlement is proposed for the same settlement date, RUS reserves the right to coordinate the date and location of the settlements with borrowers involved.
(d) Repayment of FFB. Prior to 1:00 p.m. prevailing local time in New York, New York, on the settlement date, the borrower shall wire immediately available funds to RUS through the Department of the Treasury account at the Federal Reserve Bank of New York or shall provide for payment to RUS in another manner acceptable to RUS and FFB, in an amount sufficient to pay the outstanding principal of the FFB loan being prepaid plus accrued interest from the last payment date to and including the settlement date.
(e) Documentation. The borrower shall deliver, or cause to be delivered to RUS and FFB, not less than 3 business days prior to the settlement date, written notice of the settlement date and a complete listing of each FFB loan advance to be prepaid or partially prepaid, in the format required by § 1786.31(a)(2). In the event that a private loan is used in connection with the prepayment, the following executed documents, opinions and material shall be delivered at the settlement:
(1) The guaranteed note evidencing the private loan.
(2) The guarantee.
(4) Copy of the private loan agreement between the lender and the borrower.
(5) Evidence that the borrower has received all approvals which are required under Federal or state law, loan agreements, security agreements, existing financing arrangements, or any other agreement to which the borrower is a party.
(6) An amendment in recordable form revising the description of the obligations secured by the mortgage including the obligation of the borrower to reimburse RUS for any amounts that RUS may pay under the guarantee.
(7) An approving opinion of the borrower's legal counsel to the effect that the guaranteed note evidencing the private loan is a valid and legally binding obligation of the borrower which is secured under the mortgage, and the priority of the mortgage, as amended pursuant to paragraph (e)(6) of this section, remains undisturbed.
(8) An approving opinion of the lender's legal counsel to the effect that the loan guarantee agreement is a valid and legally binding obligation of the lender.
(9) Such other opinions of counsel as may be required by the Administrator.
(10) Copies of any other documentation required by the lender.
(11) Copies of any other documentation required by RUS to ensure that the obligations of the borrower to reimburse RUS for any amounts that RUS pays under the guarantee or may advance in connection with the private loan are adequately secured under the mortgage.
(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.

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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