136

§§ 1710.402—1710.403 7 CFR Ch. XVII (1–1–00 Edition)

required by paragraph (c)(2) of this section is generally submitted to, and approved by RUS before the application

is submitted.

(2) To facilitate loan review, RUS

urges borrowers to ensure that their

applications contain all of the information required by this section before

submitting the application to RUS.

Borrowers may consult with RUS field

representatives and headquarters staff

as necessary for assistance in preparing

loan applications.

(3) RUS may, in its discretion, return

an application to the borrower if the

application is not materially complete

to the satisfaction of RUS within 10

months of receipt of any of the items

listed in paragraph (a) or (b) of this

section. RUS will generally advise the

borrower in writing at least 2 months

prior to returning the application as to

the elements of the application that

are not complete.

(4) If an application is returned, an

application for the same loan purposes

will be accepted by RUS if satisfactory

evidence is provided that all of the information required by this section will

be submitted to RUS within a reasonable time. An application for loan purposes included in an application previously returned to the borrower will

be treated as an entirely new application.

(e) Complete applications. An application is complete when all information

required by RUS to approve a loan is

materially complete in form and substance satisfactory to RUS.

(f) Change in borrower circumstances. A

borrower shall, after submitting a loan

application, promptly notify RUS of

any changes in its circumstances that

materially affect the information contained in the loan application or in the

primary support documents.

(g) Interest rate category. For pending

loans, RUS will promptly notify the

borrower if its eligibility for an interest rate category changes pursuant to

new information from the Department

of Energy or the Bureau of the Census.

See 7 CFR part 1714.

(Approved by the Office of Management and

Budget under control numbers 0572–0017,

0572–0032 and 0572–1013.)

§§ 1710.402—1710.403 [Reserved]

§ 1710.404 Additional requirements.

Additional requirements for insured

electric loans are set forth in 7 CFR

part 1714.

§ 1710.405 Supplemental financing documents.

(a) The borrower is responsible for

ensuring that the loan documents required for supplemental financing pursuant to §1710.110 are executed in a

timely fashion. These documents are

subject to RUS approval.

(b) Security. Any security offered by

the borrower to a supplemental lender

is subject to RUS approval.

§ 1710.406 Loan approval.

(a) A loan is approved when the Administrator signs the administrative

findings.

(b) If the loan is not approved, RUS

will notify the borrower of the reason.

§ 1710.407 Loan documents.

Following approval of a loan, RUS

will forward the loan documents to the

borrower for execution, delivery, recording, and filing, as directed by RUS.

PART 1714—PRE-LOAN POLICIES

AND PROCEDURES FOR INSURED

ELECTRIC LOANS

Subpart A—General

Sec.

1714.1 [Reserved]

1714.2 Definitions.

1714.3 Applicability of provisions.

1714.4 Interest rates.

1714.5 Determination of interest rates on

municipal rate loans.

1714.6 Interest rate term.

1714.7 Interest rate cap.

1714.8 Hardship rate loans.

1714.9 Prepayment of insured loans.

1714.10—1714.49 [Reserved]

Subpart B—Terms of Insured Loans

1714.50—1714.54 [Reserved]

1714.55 Advance of funds from insured loans.

1714.56 Fund advance period.

1714.57 Sequence of advances.

1714.58 Amortization of principal.

1714.59 Rescission of loans.

137

Rural Utilities Service, USDA § 1714.5

AUTHORITY: 7 U.S.C. 901–950(b); Pub. L. 99–

591, 100 Stat. 3341; Pub. L. 103–354, 108 Stat.

3178 (7 U.S.C. 6941 et seq.).

SOURCE: 58 FR 66260, Dec. 20, 1993, unless

otherwise noted.

Subpart A—General

§ 1714.1 [Reserved]

§ 1714.2 Definitions.

The definitions set forth in 7 CFR

1710.2 are applicable to this part, unless

otherwise stated. References to specific

RUS forms and other RUS documents,

and to specific sections of such forms

and documents, shall include the corresponding forms, documents, sections

and lines in any subsequent revisions

of these forms and documents.

§ 1714.3 Applicability of provisions.

(a) Insured electric loans approved on

or after November 1, 1993. On November

1, 1993, the Rural Electrification Loan

Restructuring Act, Pub. L. 103–129, 107

Stat. 1356, (RELRA) amended the Rural

Electrification Act of 1936, 7 U.S.C. 901

et seq., (RE Act) to establish a new interest rate structure for insured electric loans. Insured electric loans approved on or after this date, are either

municipal rate loans or hardship rate

loans. Borrowers meeting the criteria

set forth in §1714.8 are eligible for 5

percent hardship rate loans. The interest rate on loans to other borrowers is

the municipal interest rate, and borrowers meeting the criteria set forth in

§1714.7 are eligible for the interest rate

cap on their municipal rate loans. Interest rates for the initial interest rate

term and rollover terms (§1714.6) will

be determined pursuant to §1714.4. Provisions for prepayment are set forth in

§1714.9. The provisions of this subpart

apply to loans approved on or after November 1, 1993, unless otherwise stated.

(b) Insured electric loans approved prior

to November 1, 1993. These loans have a

single interest rate applicable to the

entire loan. The rate is generally 5 percent, but, in some cases, may be as low

as 2 percent. These loans have a single

interest rate term and may be prepaid

at face value at any time. Provisions

for discounted prepayment of these

loans are set forth in 7 CFR part 1786.

§ 1714.4 Interest rates.

(a) Municipal rate loans. Each advance

of funds on a municipal rate loan shall

bear interest at a single rate for each

interest rate term. All interest rates

applicable to municipal rate loans will

be increased by one eighth of one percent (0.125 percent), if the borrower

elects to include in the loan agreement

a prepayment option (call provision),

allowing the borrower to prepay all or

a portion of an advance on a date other

than a rollover maturity date. However, no interest rate for any advances

of a loan to a borrower who qualifies

for the interest rate cap may exceed 7

percent.

(b) Hardship rate loans. All advances

of funds on hardship rate loans shall

bear interest at a rate of 5 percent.

(c) Application procedure. The borrower’s board resolution submitted

with the loan application must indicate whether the application is for a

municipal rate loan, with or without

the interest rate cap, or a hardship

rate loan. If the application is for a

municipal rate loan, the board resolution must also indicate whether the

borrower intends to elect the prepayment option.

§ 1714.5 Determination of interest

rates on municipal rate loans.

(a) RUS will publish a schedule of interest rates for municipal rate loans in

the FEDERAL REGISTER at the beginning of each calendar quarter. The

schedule will show the year of maturity and the applicable interest rates in

effect for all funds advanced on municipal rate loans during the calendar

quarter and all interest rate terms beginning in the quarter. All interest

rates will be adjusted to the nearest

one eighth of one percent (0.125 percent).

(b) The rate for interest rate terms of

20 years or longer will be the average of

the 20 year rates published in the Bond

Buyer in the 4 weeks specified in paragraph (d) of this section for the ‘‘11-

Bond GO Index’’ of Aa rated general obligation municipal bonds, or the successor to this index.

(c) The rate for terms of less than 20

years will be the average of the rates

published in the Bond Buyer in the 4

weeks specified in paragraph (d) of this

138

§ 1714.6 7 CFR Ch. XVII (1–1–00 Edition)

section in the table of ‘‘Municipal Market Data—General Obligation Yields’’

for Aa rated bonds, or the successor to

this table, for obligations maturing in

the same year as the interest rate term

selected by the borrower.

(d) The interest rates on municipal

rate loans shall not exceed the interest

rate determined under section

307(a)(3)(A) of the Consolidated Farm

and Rural Development Act (7 U.S.C.

1927(a)(3)(A)) for Water and Waste Disposal loans. The method used to determine this rate is set forth in the regulations of the Farmers Home Administration (FmHA) at 7 CFR 1942.17(f) (1)

and (4). Pursuant to the FmHA rule,

the interest rates are set using as guidance the average of the Bond Buyer

Index for the four weeks prior to the

first Friday of the last month before

the beginning of the quarter. Information about the Bond Buyer is available

by writing Bond Buyer, One State

Street Plaza, New York, NY 10004–1549,

or by calling 1–800–982–0633.

§ 1714.6 Interest rate term.

(a) Municipal rate loans. Selection of

interest rate terms shall be made by

the borrower for each advance of funds.

The minimum interest rate term shall

be one year. RUS will send the borrower written confirmation of each

rollover maturity date and the applicable interest rate.

(1) The initial interest rate term will

begin on the date of the advance. All

rollover interest rate terms will begin

on the first day of a month, and except

for the last interest rate term to final

maturity, shall end on the last day of a

month. All terms except for the initial

interest rate term on an advance, and

the last term to final maturity shall be

in yearly increments.

(2) The following limits apply to the

number of advances of funds that may

be made to the borrower on any municipal rate loan:

(i) If the loan period is 2 years or less,

not more than 6 advances;

(ii) If the loan period is more than 2

years, not more than 8 advances.

(3) For the initial interest rate term

of an advance, a letter from an authorized official of the borrower indicating

the selection of the term shall accompany the request for the advance.

(4) At the end of any interest rate

term, the borrower shall pay all accrued interest and principal balance

then due, and either prepay the remaining principal of the advance at

face value, or roll over the remaining

principal for a new term, provided that

no interest rate term may end later

than the date of the final maturity.

(i) If the borrower elects to prepay all

or part of the remaining principal of

the advance at face value, it must notify the Director of the appropriate Regional Division or the Power Supply

Division in writing not later than 20

days before the rollover maturity date.

(ii) If the borrower wishes to elect a

new interest rate term that is different

from the term previously selected, it

must notify RUS in writing of the new

term not later than 20 days before the

end of the current term. The election

of the new term shall be addressed to

the Director, Financial Operations Division, Rural Utilities Service, Washington, DC 20250–1500.

(iii) If the borrower fails to notify

RUS within the timeframes set out in

this paragraph of its intention to prepay or elect a different interest rate

term, RUS will automatically roll over

the remaining principal for the shorter

of, and at the interest rate applicable

to:

(A) A period equal in length to the

term that is expiring; or

(B) The remaining period to final maturity.

(b) Hardship rate loans. Loans made at

the 5 percent hardship rate are made

for a single term that cannot exceed

the final maturity as set forth in 7 CFR

1710.115. The hardship interest rate applies to the entire amount of the loan.

[58 FR 66260, Dec. 20, 1993, as amended at 60

FR 3734, Jan. 19, 1995]

§ 1714.7 Interest rate cap.

Except as provided in paragraph (c)

of this section, the municipal interest

rate may not exceed 7 percent on a

loan advance to a borrower primarily

engaged in providing retail electric

service if the borrower meets, at the

time of loan approval, either the consumer density test set forth in paragraph (a) of this section, or both the

rate disparity test for the interest rate

139

Rural Utilities Service, USDA § 1714.8

cap and the consumer income test set

forth in paragraph (b) of this section.

(a) Low consumer density test. The borrower meets this test if the average

number of consumers per mile of line

of its total electric system, based on

the most recent data available at the

time of loan approval is less than 5.50.

(b)(1) Rate disparity test for the interest

rate cap. The borrower meets this test

if its average revenue per kWh sold is

more than the average revenue per

kWh sold by all electric utilities in the

state in which the borrower provides

service. To determine whether a borrower meets this test, RUS will compare the borrower’s average total revenue with statewide data in the table

of Average Revenue per Kilowatthour

for Electric Utilities by Sector, Census

Division and State, in the Electric

Power Annual issued by the Energy Information Administration of the Department of Energy (DOE), or the successor to this table. The test will be

based on the most recent calendar year

for which full year DOE data are available at the time of loan approval and

borrower data for the same year.

(2) Consumer income test. The borrower meets this test if either the average per capita income of the residents

receiving electric service from the borrower is less than the average per capita income of residents of the state in

which the borrower provides service or

the median household income of the

households receiving electric service

from the borrower is less than the median household income of the households in the state.

(i) To qualify under the consumer income test, the borrower must include

in its loan application information

about the location of its residential

consumers. The borrower must provide

to RUS, based on the most recent data

available at the time of loan application, either the number of consumers

in each county it serves or the number

of consumers in each census tract it

serves. Using the most recently published decennial census data on income

from the Bureau of the Census, RUS

will compare, on a weighted average

basis, the average per capita and median household income of the counties

or census tracts served by the borrower

with state figures.

(ii) In cases where conditions have

substantially changed so that the decennial census data no longer accurately describes the economic conditions of the borrower’s consumers, the

borrower may provide RUS with more

current income data from a reliable

source such as a State agency. The Administrator has the sole discretion to

determine whether such data submitted by the borrower is sufficient to

determine whether the borrower qualifies under the consumer income test.

(3) Borrowers serving 2 or more states. If

a borrower serves consumers in 2 or

more states, the rate disparity test and

the consumer income test will be determined on a weighted average based

on the percentage of the borrower’s

total consumers that are served in each

state.

(c) High density test. If the average

number of consumers per mile of the

borrower’s total electric system exceeds 17, the interest rate cap will not

apply to funds used for the purpose of

furnishing or improving electric service to consumers located in an area

that is an urban area at the time of

loan approval, notwithstanding that

the area must have been deemed a

rural area for the purpose of qualifying

for a loan under this part. (See the definition of ‘‘rural area’’ in 7 CFR 1710.2.)

If the average number of consumers per

mile of line of the borrower’s total

electric system exceeds 17, the borrower must include, as a note on RUS

Form 740c, Cost Estimates and Loan

Budget for Electric Borrowers, submitted as part of the loan application

for a loan subject to the interest rate

cap, a breakdown of funds included in

the proposed loan to furnish or improve

service to consumers located in such

urban areas. For such borrowers only

funds for those facilities serving consumers located outside an urban area

are eligible for the interest rate cap.

§ 1714.8 Hardship rate loans.

Except as provided in paragraph (d)

of this section, the Administrator shall

make an insured electric loan for eligible purposes at the 5 percent hardship

rate to a borrower primarily engaged

in providing retail electric service if

the borrower meets, at the time of loan

approval, both the rate disparity test

140

§ 1714.8 7 CFR Ch. XVII (1–1–00 Edition)

for hardship and the consumer income

test described in paragraph (a) of this

section; or the extremely high rates

test set forth in paragraph (b) of this

section. A loan at the 5 percent hardship rate may also be made to any borrower pursuant to paragraph (c) of this

section who, in the sole discretion of

the Administrator, has experienced a

severe hardship. The Administrator

may not require a loan from a supplemental source in connection with a

hardship rate loan.

(a)(1) Rate disparity test for hardship.

The borrower meets this test if its average revenue per kWh sold is not less

than 120 percent of the average revenue

per kWh sold by all electric utilities in

the state in which the borrower provides service, and its average residential revenue per kWh is not less than

120 percent of the average residential

revenue per kWh sold by all electric

utilities in the state in which the borrower provides service. To determine

whether a borrower meets this test,

RUS will compare the borrower’s average total revenue and average residential revenue with statewide data in the

table of Average Revenue per

Kilowatthour for Electric Utilities by

Sector, Census Division and State, in

the Electric Power Annual issued by

the Energy Information Administration of the Department of Energy

(DOE), or the successor to this table.

The test will be based on the most recent calendar year for which full year

DOE data are available at the time of

loan approval and borrower data for

the same year.

(2) Consumer income test. The borrower meets this test if either the average per capita income of the residents

receiving electric service from the borrower is less than the average per capita income of the residents of the state

in which the borrower provides service

or the median household income of the

residents receiving electric service

from the borrower is less than the median household income of the households in the state. RUS will determine

whether the borrower qualifies under

this test according to the procedure set

forth in §1714.7(b)(2).

(3) Borrowers serving 2 or more states. If

a borrower serves consumers in 2 or

more states, the rate disparity test and

the consumer income tests will be determined on a weighted average based

on the percentage of the borrower’s

total consumers that are served in each

state.

(b) Extremely high rates test. Except as

provided in this paragraph, the Administrator shall make an insured electric

loan at the 5 percent hardship rate to

any borrower whose residential revenue exceeds 15.0 cents per kWh sold.

Residential revenue shall be calculated

for the most recent full calendar year

for which data are available and shall

include sales to both seasonal and nonseasonal consumers. If, at the time of

loan approval, the area to be served is

an urbanized area (notwithstanding

that the area must be deemed a rural

area to qualify for a loan under this

part (See the definition of ‘‘rural area’’

in 7 CFR 1710.2)), then the borrower

must satisfy the provisions of paragraphs (a) and (d) of this section to

qualify to the 5 percent hardship interest rate. If at the time of loan approval, such area is outside an urbanized area, the loan shall not be subject

to the conditions and limitations set

forth in paragraphs (a) and (d) of this

section.

(c) Administrator’s discretion. The Administrator may make a hardship rate

loan if, in the sole discretion of the Administrator, the borrower has experienced a severe hardship. The Administrator shall consider, among other

matters, whether factors beyond the

control or substantial influence of the

borrower have had severe adverse effect

on the borrower’s ability to provide

service consistent with the purposes of

the RE Act, and which prudent management could not reasonably anticipate and either prevent or insure

against. Among the factors that may

be considered are system damage due

to unusual weather or other natural

disasters or Acts of God, loss of substantial loads, extreme rate disparity

compared to a contiguous utility, and

other factors that cause severe financial hardship. The Administrator will

also consider whether a hardship rate

loan will provide significant relief to

the borrower in dealing with the severe

hardship.

(d) High density test. Except as provided in paragraph (b) of this section, if

141

Rural Utilities Service, USDA § 1714.56

the average number of consumers per

mile of the borrower’s total electric

system exceeds 17, the 5 percent hardship rate will not apply to funds used

for the purpose of furnishing or improving electric service to consumers

located in an area that is an urban area

at the time of loan approval, notwithstanding that the area must have been

deemed a rural area for the purpose of

qualifying for a loan under this part.

(See the definition of ‘‘rural area’’ in 7

CFR 1710.2.) If the average number of

consumers per mile of line of the borrower’s total electric system exceeds

17, the borrower must include, as a

note on RUS Form 740c, Cost Estimates and Loan Budget for Electric

Borrowers, submitted as part of the

loan application for a loan at the 5 percent hardship rate, a breakdown of

funds included in the proposed loan to

furnish or improve service to consumers located in urban areas. For

such borrowers only funds for those facilities serving consumers located outside an urban area are eligible for the

5 percent hardship rate.

(Approved by the Office of Management and

Budget under control number 0572–1013.)

§ 1714.9 Prepayment of insured loans.

This section sets out provisions for

prepayment of insured electric loans at

face value. Provisions for discounted

prepayment of RUS loans are set out in

7 CFR part 1786.

(a) Municipal rate loans. Loan documents for municipal rate loans shall

provide for the following:

(1) Prepayment on a rollover maturity

date. All, or a portion of, the outstanding balance on any advance from

a municipal rate loan may be prepaid

on any rollover maturity date pursuant

to §1714.6(a)(4).

(2) Prepayment on a date other than a

rollover maturity date. A borrower may

elect at the time of loan approval to include a prepayment option (call provision) that will allow the borrower to

prepay all, or a portion of, the outstanding balance on any advance on a

date other than a rollover maturity

date. Interest rates on advances from

loans with a prepayment provision will

be increased as set forth in §1714.4(a).

(b) Hardship rate loans. Loan documents for hardship loans shall provide

that the loan may be prepaid at face

value at any time without penalty.

§§ 1714.10—1714.49 [Reserved]

Subpart B—Terms of Insured Loans

SOURCE: 60 FR 3734, Jan. 19, 1995, unless

otherwise noted.

§§ 1714.50—1714.54 [Reserved]

§ 1714.55 Advance of funds from insured loans.

The borrower shall request advances

of funds as needed. Advances are subject to RUS approval and must be requested in writing on RUS Form 595 or

an RUS approved equivalent. Funds

will not be advanced until the Administrator has received satisfactory evidence that the borrower has met all applicable conditions precedent to the advance of funds, including evidence that

the supplemental financing required

under 7 CFR part 1710 and any concurrent loan guaranteed by RUS are available to the borrower under terms and

conditions satisfactory to RUS.

§ 1714.56 Fund advance period.

(a) For loans approved on or after

February 21, 1995, the fund advance period begins on the date of the loan note

and is one year longer than the loan

period, but not less than 4 years. For

example, the fund advance period for a

loan with a 2-year loan period terminates automatically 4 years after the

date of the loan note; a loan with a 4-

year loan period terminates automatically 5 years after the date of the loan

note. The Administrator may extend

the fund advance period on any loan if

the borrower meets the requirements

of paragraph (c) of this section. As defined in 7 CFR 1710.2, the loan period

begins on the date shown on page 1 of

RUS Form 740c submitted with the

loan application.

(b) For loans approved on or after

June 1, 1984, and before February 21,

1995, the fund advance period begins on

the date of the loan contract, or the

most recent amendment thereto, and

terminates automatically 4 years from

the date of the loan contract, or the

142

§ 1714.57 7 CFR Ch. XVII (1–1–00 Edition)

most recent amendment thereto, except as provided in paragraph (c) of

this section.

(c) The Administrator may agree to

an extension of the fund advance period

for loans approved on or after June 1,

1984, if the borrower demonstrates to

the satisfaction of the Administrator

that the loan funds continue to be

needed for approved loan purposes (i.e.,

facilities included in an RUS approved

construction work plan). Policies for

extension of the fund advance period

following certain mergers, consolidations, and transfers of systems substantially in their entirety are set

forth in 7 CFR 1717.156.

(1) To apply for an extension, the borrower must send to RUS, at least 120

days before the automatic termination

date, the following:

(i) A certified copy of a board resolution requesting an extension of the

Government’s obligation to advance

loan funds;

(ii) Evidence that the unadvanced

loan funds continue to be needed for

approved loan purposes; and

(iii) Notice of the estimated date for

completion of construction.

(2) In the case of financial hardship,

as determined by the Administrator,

RUS may agree to an extension of the

fund advance period even though the

borrower has failed to meet the 120-day

requirement of paragraph (c)(1) of this

section.

(3) If the Administrator approves a

request for an extension, RUS will notify the borrower in writing of the extension and the terms and conditions

thereof. An extension will be effective

only if it is obtained in writing prior to

the automatic termination date.

(d) Advances of funds from loans approved before June 1, 1984, are generally made during the first 6 years of

the note.

(e) RUS will rescind the balance of

any loan funds not advanced to a borrower as of the final date approved for

advancing funds.

[60 FR 3734, Jan. 19, 1995, as amended at 61

FR 66871, Dec. 19, 1996]

§ 1714.57 Sequence of advances.

(a) Except as set forth in paragraph

(b) of this section, concurrent loan

funds will be advanced in the following

order:

(1) 50 percent of the RUS insured loan

funds;

(2) 100 percent of the supplemental

loan funds;

(3) The remaining amount of the RUS

insured loan funds.

(b) At the borrower’s request and

with RUS approval, all or part of the

supplemental loan funds may be advanced before funds in paragraph (a)(1)

of this section.

§ 1714.58 Amortization of principal.

(a) For insured loans approved on or

after February 21, 1995:

(1) Amortization of funds advanced

during the first 2 years after the date

of the note shall begin no later than 2

years from the date of the note. Except

as set forth in paragraph (a)(2) of this

section, amortization of funds advanced 2 years or more after the date

of the note shall begin with the scheduled loan payment billed in the month

following the month of the advance.

(2) For advances made 2 years or

more after the date of the note, the Administrator may authorize deferral of

amortization of principal for a period

of up to 2 years from the date of the advance if the Administrator determines

that failure to authorize such deferral

would adversely affect either the Government’s financial interest or the

achievement of the purposes of the RE

Act.

(b) For insured loans approved before

February 21, 1995, amortization of principal shall begin 2 years after the date

of the note for advances made during

the first and second years of the loan,

and 4 years after the date of the note

for advances made during the third and

fourth years.

§ 1714.59 Rescission of loans.

(a) A borrower may request rescission of a loan with respect to any funds

unadvanced by submitting a certified

copy of a resolution by the borrower’s

board of directors.

(b) RUS may rescind loans pursuant

to §1714.56.

(c) Borrowers who prepay RUS loans

at a discounted present value pursuant

143

Rural Utilities Service, USDA Pt. 1717

to 7 CFR part 1786, subpart F, are required to rescind the unadvanced balance of all outstanding electric notes

pursuant to 7 CFR 1786.158(j).

PART 1717—POST-LOAN POLICIES

AND PROCEDURES COMMON TO

INSURED AND GUARANTEED

ELECTRIC LOANS

Subparts A–C [Reserved]

Subpart D—Mergers and Consolidations of

Electric Borrowers

Sec.

1717.150 General.

1717.151 Definitions.

1717.152 Required documentation for all

mergers.

1717.153 Transitional assistance.

1717.154 Transitional assistance in connection with new loans.

1717.155 Transitional assistance affecting

new and preexisting loans.

1717.156 Transitional assistance affecting

preexisting loans.

1717.157 Requests for transitional assistance.

1717.158 Mergers with borrowers who prepaid RUS loans.

1717.159 Applications for RUS approvals of

mergers.

1717.160 Application contents.

1717.161 Application process.

Subparts E–F [Reserved]

Subpart G—Federal Pre-emption in Rate

Making in Connection With Power

Supply Borrowers

1717.300 Purpose.

1717.301 Policy.

1717.302 Definitions and rules of construction.

1717.303 Requirements of RUS documents.

1717.304 State regulatory authority rate jurisdiction.

1717.305 Pre-emption.

1717.306 RUS required rates.

1717.307 Distribution members’ rates.

1717.308 RUS approval of nonconforming

rates.

1717.309 Additional statutory pre-emption.

1717.310—1717.349 [Reserved]

Subpart H—Federal Pre-emption in Rate

Making in Connection With RUS Electric Borrowers in Bankruptcy

1717.350 Purpose.

1717.351 Policy.

1717.352 Definitions and rules of construction.

1717.353 Requirements of RUS documents.

1717.354 Pre-emption.

1717.355 RUS required rates.

1717.356 Additional statutory pre-emption.

Subparts I–L [Reserved]

Subpart M—Operational Controls

1717.600 General.

1717.601 Applicability.

1717.602 Definitions.

1717.603 RUS approval of extensions and additions.

1717.604 Long-range engineering plans and

construction work plans.

1717.605 Design standards, plans and specifications, construction standards, and

RUS accepted materials.

1717.606 Standard forms of construction

contracts, and engineering and architectural services contracts.

1717.607 Contract bidding requirements.

1717.608 RUS approval of contracts.

1717.609 RUS approval of general manager.

1717.610 RUS approval of compensation of

the board of directors.

1717.611 RUS approval of expenditures for

legal, accounting, engineering, and supervisory services.

1717.612 RUS approval of borrower’s bank or

other depository.

1717.613 RUS approval of data processing

and system control equipment.

1717.614 Notification of rate changes.

1717.615 Consolidations and mergers.

1717.616 Sale, lease, or transfer of capital assets.

1717.617 Limitations on distributions.

Subpart N—Investments, Loans, and

Guarantees by Electric Borrowers

1717.650 Purpose.

1717.651 General.

1717.652 Definitions.

1717.653 Borrowers in default.

1717.654 Transactions below the 15 percent

level.

1717.655 Exclusion of certain investments,

loans, and guarantees.

1717.656 Exemption of certain borrowers

from controls.

1717.657 Investments above the 15 percent

level by certain borrowers not exempt

under §1717.656(a).

1717.658 Records, reports and audits.

1717.659 Effect of this subpart on RUS loan

contract and mortgage.

Subpart O [Reserved]

1717.700—1717.749 [Reserved]

Subpart P [Reserved]

1717.750—1717.799 [Reserved]