234

Pt. 1721 7 CFR Ch. XVII (1–1–00 Edition)

lll (2) amortized at a rate that shall

yield a weighted average life that is not

greater than the weighted average life that

would result from level payments of principal and interest throughout the life of the

loan as evidenced by the attached analysis of

said weighted average lives.

(c) The principal of the loan evidenced by

such Notes has a maturity of not less than 5

years.

[Signed] lllllllllllllllllll

[Dated] lllllllllllllllllll

[Name] lllllllllllllllllll

[Title] llllllllllllllllllll

[Name and Address of Borrower] llllll

llllllllllllllllllllllll

llllllllllllllllllllllll

EXHIBIT C–2—MANAGER’S CERTIFICATE REQUIRED UNDER LOAN CONTRACT SECTION 6.14

FOR REFINANCING NOTES

On behalf on llllllllll [Name of

Borrower] llllllllll I hereby certify that the Additional Note or Notes to be

issued under Section [2.02] of the Mortgage

on or about llllllllll [Date Note or

Notes are to be Signed] llllllllll

meet the requirement of Section [6.14] of the

Loan Contract that the weighted average life

of such Notes is not greater than the weighted average remaining life of the Notes being

refinanced, as evidenced by the attached calculation of said weighted average lives.

[Signed] lllllllllllllllllll

[Dated] lllllllllllllllllll

[Name] lllllllllllllllllll

[Title] llllllllllllllllllll

[Name and Address of Borrower] llllll

llllllllllllllllllllllll

llllllllllllllllllllllll

PART 1721—POST-LOAN POLICIES

AND PROCEDURES FOR INSURED

ELECTRIC LOANS

AUTHORITY: 7 U.S.C. 901 et seq.; 1921 et seq.;

and 6941 et seq.

EDITORIAL NOTE: Nomenclature changes to

part 1721 appear at 55 FR 39397, Sept. 27, 1990.

Subpart A—Advance of Funds

§ 1721.1 Advances.

(a) Purpose and amount. With the exception of minor projects, insured loan

funds will be advanced only for projects

which are included in an RUS approved

borrower’s construction work plan

(CWP) or approved amendment and in

an approved loan, as amended. Loan

fund advances can be requested in an

amount representing actual costs incurred.

(b) Minor project. Minor project

means a project costing $100,000 or less.

Such a project qualifies for advance of

loan funds even though it may not

have been included in an RUS-approved

borrower’s CWP, amendment to such

CWP, or approved loan. Total advances

requested shall not exceed the total

loan amount. All projects for which

loan fund advances are requested must

be constructed to achieve purposes permitted by terms of the loan contract

between the borrower and RUS.

(c) Certification. Pursuant to the applicable provisions of the RUS loan

contract, borrowers shall certify with

each request for funds to be approved

for advance that such funds are for

projects in compliance with this section and shall also provide for those

that cost in excess of $100,000, a contract or work order number as applicable and a CWP cross-reference project

coded identification number. For a

minor project not included in an RUS

approved borrower’s CWP, the Borrower shall describe the project and do

one of the following to satisfy RUS’ environmental requirements (see 7 CFR

part 1794).

(1) If applicable, state that the

project is a categorical exclusion of a

type described in §1794.21(b), which normally does not require preparation of

an Environmental Report (ER); or

(2) If applicable, state that the

project is a categorical exclusion of a

type that normally requires an ER and

then:

(i) Submit the ER with the request

for funds to be approved for advance, or

(ii) If applicable, certify that it has

analyzed the minor project with respect to a comprehensive service area

environmental map and data base collected and used in preparing the ER for

its RUS-approved borrower’s CWP, and

that on the basis of that information,

the minor project will not be located in

an environmentally sensitive area or

location.

235

Rural Utilities Service, USDA § 1721.1

1 A copy of these forms and publications

may be obtained by writing the Rural Utilities Service, Washington, DC 20250.

(d) Noncompliance. Where insured

loan funds are found to have been advanced in noncompliance with this section, borrowers will be required to deposit the appropriate amount of the

over-advance in the construction fundtrustee account and pay any accrued

and unpaid interest to RUS. The Administrator will require borrowers, in

order to remedy such noncompliance,

to pay an additional amount equal to

the interest on the funds over-advanced

for the period such funds were outstanding, calculated at a rate equal to

the difference between the RUS loan

interest rate and the most recent rate

at which RUS sold Certificates of Beneficial Ownership (CBO’s). While RUS

will generally permit the amount of

over-advance deposited in the construction fund-trustee account to be

subsequently used by the borrower for

RUS approved projects, nothing in this

section shall be construed to preclude

RUS from exercising any rights or remedies which RUS may have pursuant to

the loan contract.

[64 FR 72489, Dec. 28, 1999]

EFFECTIVE DATE NOTE: At 64 FR 72489, Dec.

28, 1999, §1721.1 was revised, effective Feb. 11,

2000. For the convenience of the user, the superseded text is set forth as follows:

§ 1721.1 Advances.

(a) Purpose and amount. With the exception

of minor construction, insured loan funds

will be advanced only for projects which are

included in an RUS approved Borrower’s construction workplan or approved amendment

and in an approved loan, as amended. Loan

fund advances can be requested in an amount

representing actual costs incurred but not to

exceed 130 percent of the project cost estimate on the approved RUS Form 740c, ‘‘Costs

Estimates and Loan Budget for Electric Borrowers,’’ 1 as amended. Minor construction is

defined as a project costing $25,000 or less.

Such projects qualify for advance of loan

funds even though they may not have been

included in an RUS-approved Borrower’s construction workplan, amendment to such

workplan or approved loan. Total advances

requested shall not exceed the total loan

amount. All projects for which loan fund advances are requested must be constructed to

achieve purposes permitted by terms of the

loan contract between the Borrower and

RUS.

(b) Certification. Pursuant to the applicable

provisions of the RUS loan contract, Borrowers shall certify with each request for

funds to be approved for advance that such

funds are for projects in compliance with

this section and shall also provide for those

that cost in excess of $25,000 a contract or

work order number as applicable and a

workplan cross-reference identification.

For a minor project not included in an

RUS approved Borrower’s construction

workplan, the Borrower shall describe the

project and do one of the following to satisfy

RUS’s environmental requirements (see 7

CFR part 1794).

(1) If applicable, state that the project is a

categorical exclusion of a type described in 7

CFR 1794.31(b) which normally does not require preparation of a Borrower’s Environmental Report (BER); or

(2) If applicable, state that the project is a

categorical exclusion of a type that normally requires a BER and then:

(i) Submit the BER with the request for

funds to be approved for advance, or

(ii) If applicable, certify that it has analyzed the minor project with respect to a

comprehensive service area environmental

map and data base collected and used in preparing the BER for its RUS-approved Borrower’s construction workplan, and that on

the basis of that information the minor

project will not be located in an environmentally sensitive area or location.

(c) Noncompliance. Where insured loan

funds are found to have been advanced in

noncompliance with this rule, Borrowers will

be required to return the appropriate

amount of the over advance together with

any accrued and unpaid interest to RUS. The

Administrator will require Borrowers, in

order to remedy such noncompliance, to pay

an additional amount equal to the interest

on the funds over advanced for the period

such funds were outstanding, calculated at a

rate equal to the difference between the RUS

loan interest rate and the most recent rate

at which RUS sold Certificates of Beneficial

Ownership (CBO’s). While RUS will generally

permit the amount of over advance returned

to be requested subsequently by the Borrower for RUS approved projects, nothing

herein contained shall be construed to preclude RUS from exercising any rights or

remedies which RUS may have pursuant to

the loan contract.

[50 FR 5368, Feb. 8, 1985. Redesignated at 55

FR 39395, Sept. 27, 1990]

Subpart B [Reserved]