Source: https://www.law.cornell.edu/cfr/text/7/1717.657
Timestamp: 2018-03-19 07:26:43
Document Index: 164111013

Matched Legal Cases: ['§ 1717', 'art 1717', '§ 1717', '§ 1717', '§ 1717', '§ 1717', '§ 1717', '§ 1717', '§ 1717']

7 CFR 1717.657 - Investments above the 15 percent level by certain borrowers not exempt under § 1717.656(a). | US Law | LII / Legal Information Institute
CFR › Title 7 › Subtitle B › Chapter XVII › Part 1717 › Subpart N › Section 1717.657
7 CFR 1717.657 - Investments above the 15 percent level by certain borrowers not exempt under § 1717.656(a).
§ 1717.657 Investments above the 15 percent level by certain borrowers not exempt under § 1717.656(a).
(1) This section applies only to borrowers that are in compliance with all provisions of their mortgage, loan contract, and any other agreements with RUS and that do not qualify for an exemption from RUS investment controls under § 1717.656(a).
(b)Distribution borrowers. Distribution borrowers not exempt from RUS investment controls under § 1717.656(a) may not make investments, loans and guarantees in an aggregate amount in excess of 15 percent of total utility plant. Above the 15 percent level, such borrowers will be restricted to excluded investments, loans and guarantees as defined in § 1717.655. (However, they are eligible to ask RUS to exclude a portion of their investments under the conditions set forth in paragraph (d) of this section.)
(c)Power supply borrowers.
(1) Power supply borrowers not exempt from RUS investment controls under § 1717.656(a) may request approval to exceed the 15 percent level if all of the following criteria are met:
(d)Distribution and power supply borrowers. If the aggregate of the investments, loans and guarantees of a distribution or power supply borrower exceeds 15 percent of the borrower's total utility plant as a result of the cumulative profits or margins, net of losses, earned on said transactions over the past 10 calendar years (i.e., the sum of all profits earned during the 10 years on all transactions - including interest earned on cash accounts, loans, and similar transactions - less the sum of all losses experienced on all transactions during the 10 years) then:
7 CFR 1717.656 — Exemption of Certain Borrowers From Controls.
7 CFR 1717.655 — Exclusion of Certain Investments, Loans, and Guarantees.