## INSTRUCTIONS FOR PREPARATION OF RUS FORM 369

This form must be completed and submitted when RUS approval of the sale of property is required.  Please refer to the provisions of §1717.616, Sale, Lease, or Transfer of Capital Assets, and/or your Restated Mortgage and Security Agreement, Article III, Section 3.11, Limitations on Transfers of Property, to determine whether RUS approval of the sale of property is required.

Submit an original and two copies to RUS with Items 1 through 14 completed, together with information regarding the details of the sale, the computation of the selling price, one copy of a certified board resolution, the cut-off date established (in the case of sales by assumption of debt) and any other material necessary for a full disclosure of the proposed transaction and its effect upon the system.  (See RUS Bulletin 115-1.)

SALES FOR CASH.  After approval (Item 15) the original and two copies of Form 369 will be returned to the Seller.  Seller is to complete Item 16, returning the original and one copy to the appropriate regional office at the Rural Utilities Service, 1400 Independence Ave., SW., Washington, DC  20250-1500. One copy of the form should be retained in the Seller’s file.  If the proceeds are to be deposited in the construction funds, no separate accounting is required even if a supplementary lender is involved.  If the proceeds are being used to prepay a note, a wire transfer should be made under normal payment procedures and the note should be speified.

SALES BY ASSUMPTION OF INDEBTEDNESS.  After approval by the RUS Administrator and supplemental lenders, if applicable (Item 15), the original and two copies of the Form 369 will be returned to the Seller with any supplemental instructions necessary.  Seller is to complete Item 16 and return the original and one copy to RUS as per the instructions received from the regional office.  One copy should be sent to the supplemental lender, if applicable, and one copy retained in the Seller’s file.

CONDEMNATIONS.  Submit Form 369 promptly after learning that property will be condemned, giving all known details.  A board resolution need not be submitted for condemnations.  Instead a copy of the petition or complaint in the suit should be submitted as an attachment to this form.  Items 10, 11, and 12 may be completed by referring to the petition or complaint.  Item 14 need not be completed.  Items on the form which cannot be completed may be omitted at that time and submitted later.  Approvals will not be given until negotiations have been completed.  Final processing requires complete information.

RUS Form **369***(Rev. 01-00)*

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB control number.  The valid OMB control number for this information collection is 0572-0020.  The time required to complete this information collection is estimated to average 3 hours per response, including the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

 2.  Closing Date of Sale

 1.  Date of this Request

 3.  Borrower Designation of Seller

 4.  Borrower Designation of 

      Purchaser (if RUS Borrowers)

USDA-RUS

REQUEST FOR APPROVAL TO SELL CAPITAL ASSETS

INSTRUCTIONS – See reverse side of this form.

 5.  Name and Address of Seller

 6.  Name and Address of Purchaser

 7.  Approximate Original Cost

 8.  Condition of Property (check one)

(  New	(  Scrap

(  Used Usable

 9.  Type of Sale (check one)

(  Cash	(  Installment

(  Transfer	(  Transfer	

 10.  Selling Price

 11.	Describe in sufficient detail to identify adequately the property and estimate its present value.  If real estate, include legal description.  Attach forms for 

	partial release of lien, if necessary.

 12.  Reason for Sale (If additional space is needed, attach additional sheets.)

 13.	Disposition of Net Proceeds of Sales (Insert amount in appropriate space.)

	A.	To Cash (Check One)

	( General Fund Account (Only the net proceeds from sale of materials, equipment, and scrap)		$ ______________________

	( Construction Fund – Trustee Account		$ ______________________

To RUS as a Special Payment to be Applied to Note(s) No. ________________

Dated _________________________		$ ______________________

To Supplemental Lender (if applicable) as a Special Payment to be Applied to Notes(s)

No. _________________  Dated __________________________		$ ______________________

	D.	Seller’s Notes to be Assumed  [For sale of property by assumption of indebtedness only.  Designated RUS and/or supplemental lender 

	(if applicable) and appropriate note of each.]

DESIGNATION�

DATE OF NOTE�

AMOUNT OF NOTE(S)�

AMOUNT TO BE ASSUMED�

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E.  Other (Include supplement lenders and amounts if applicable.)

 14.		CERTIFICATION

	I hereby certify that the selling price is not less than the fair market value of the property, the sale is in the best interest of the mortgagee(s) and this organization; the system after the sale will constitute a satisfactory operating unit and will not jeopardize the repayment of the RUS or other loans, if any; and that all necessary approvals have been or will be obtained where required by law or by the articles of incorporation by-laws of this organization.

____________________________________________________________________________________________________________________

SELLER’S CORPORATE NAME

	___________________________________________________	_________________________________________________

	SIGNATURE OF AUTHORIZED OFFICIAL	TITLE OF AUTHORIZED OFFICIAL

 15.  APPROVAL is hereby given to complete the sale and release possession to the above-named purchaser of the property described above for the sum of 

$ _________________________ , contingent upon disposition of the proceeds in the manner stipulated above.

	____________________________________________________	____________________________________________

	SIGNATURE OF AUTHORIZED OFFICIAL	DATE

	____________________________________________________	____________________________________________

	ADMINISTRATOR	DATE

 16.  NOTICE OF FINAL ACTION – When delivery of the property has been made the borrower should notify RUS by completing the certification below.

CERTIFICATION

	I certify that possession of the property indicated above was released on ________________________________ and $ ______________________________

Has been accounted for as approved above.

	____________________________________________________	__________________________________________________

	SIGNATURE OF AUTHORIZED OFFICIAL	TITLE OF AUTHORIZED OFFICIAL

RUS Form 369     (Rev. 01-00)