UNITED STATES DEPARTMENT OF AGRICULTURE

Rural Utilities Service

BULLETIN 1780-10a

RD-GD-2000-35

SUBJECT: Letter For Use In Informing Private Lender of Agency's Commitment (Bonds)

EFFECTIVE DATE: March 20, 2000.

OFFICE OF PRIMARY INTEREST: Assistant Administrator, Electric Program.

FILING INSTRUCTIONS: 

PURPOSE: This bulletin is issued to confirm certain understandings on behalf of RUS.

DISCLAIMER: The contents of this guidance document does not have the force and effect of law and is not meant 

to bind the public in any way. This document is intended only to provide clarity to the public regarding existing 

requirements under the law or agency policies.
RUS Bulletin 1780-10a

LETTER FOR USE IN INFORMING

OTHER LENDERS OF RURAL UTILITIES SERVICE'S COMMITMENT

TO: _____________________(NAME AND ADDRESS OF LENDER)___________________

___________________________________________________________________________

SUB: INTERIM FINANCING FOR THE ___(Name of Entity)___

The ___(Name of Entity)___ (the "applicant") proposes to sell ___(type of debt instrument)___ in

order to obtain interim financing for the construction of a ___(description of project)___. The

___(debt instrument)___, in the aggregate principal amount of $__________________, is being

issued pursuant to a certain ___(authorizing document)___ Resolution adopted by the applicant

on ___(Date)___, ____. On the same date the applicant adopted a bond resolution pursuant to

which it will issue bonds for permanent financing.

This letter is to confirm certain understandings on behalf of the Rural Utilities Service.

Final plans and specifications have been prepared and approved, bids have been taken and the

applicant has awarded the construction contract to the qualified low bidders. It has been

determined by the applicant and the Rural Utilities Service that the conditions of a permanent loan

closing can be met. Presently, Rural Utilities Service has no reason to believe that such

conditions will not be met.

Funds have been obligated for the project by the Rural Utilities Service.

It is proposed by the applicant, with the approval of the Rural Utilities Service, that the proceeds

from the purchase of the ___(type of debt instrument)___ will be used to provide for interest on

the ___(type of debt instrument)___ to maturity and to pay for construction and other authorized

and legally eligible expenses incurred by the applicant upon presentation of proper statements or

work estimates approved by the applicant, its authorized representatives, and authorized official of

the Rural Utilities Service.

We have scheduled disbursement of the permanent loan to the applicant for no later than

___(Date)___, _____, in immediately available funds, so that funds will be available to pay the

___(type of debt instrument)___ in full upon their maturity on ___(Date)___, ____. Upon meeting

the loan conditions, at the permanent loan closing the Rural Utilities Service will disburse the

permanent loan by purchasing the applicant's ___(permanent debt instrument)___ issued

pursuant to the Bond Resolution.

We appreciate your assistance to the applicant and look forward to working with you on this

project.

Sincerely yours,

State Program Official

Rural Utilities Service