accordance with section 552 of Title 5, United States Code, and

(2) Furnish a copy of the determination to the Comptroller General of the United States.

(h) A borrower should not wait until the end of the fiscal year to submit a requisition for an advance of loan funds if it wants the advance made in that fiscal year. Borrower requisitions submitted late in the fiscal year may not be processed in that fiscal year because of workload and other factors.

[53 FR 36783, Sept. 22, 1988; 53 FR 39014, Oct. 4, 1988]

§ 1610.11 Interest rate to be considered for purposes of assessing eligibility for loans.

For purposes of determining the creditworthiness of a borrower for a Bank loan pursuant to section 408(b)(4) (i) and (ii) of the Act, the Governor shall assume that the loan, if made, would bear interest at a rate equal to the average yield on the date of determination on outstanding marketable obligations of the United

States having a final maturity comparable to the final maturity of the loan.

(a) The Treasury rate will be used for this determination. The 30-year Treasury rate will be used in all feasibility studies for loans with a final maturity of at least 30 years from the date of the mortgage note between the Bank and the borrower. A straight-line interpolation between other Treasury rates will be used to determine the rate applicable for feasibility studies for loans with final maturities of less than 30 years.

(b) The Treasury rate will be obtained each Tuesday, or as soon as possible thereafter, from the Federal Reserve. The rate for the current week, from the column labeled "This week" in the Federal Reserve statistical release, will be used from that Wednesday through the following Tuesday.

(c) As used in this paragraph, the "date of determination" means the date of the feasibility study used in support of the loan recommendation. [53 FR 36784, Sept. 22, 1988]

Sec.

PART 1700-PROCEDURES

1700.1 Loans pursuant to section 4 of Rural Electrification Act. 1700.2 Loans pursuant to section 5 of Rural Electrification Act. 1700.3 Loans pursuant to section 201 of Rural Electrification Act.

1700.38 CATV loans and guarantees under the Consolidated Farm and Rural Development Act.

1700.3b Insured loans pursuant to section 305 of the Rural Electrification Act, as amended May 11, 1973.

1700.3c Guaranteed loans pursuant to sec

tion 306 of the Rural Electrification Act, as amended May 11, 1973. 1700.3d Loans and grants pursuant to section 313 of the Rural Electrification Act, as amended December 21, 1987. 1700.4 Studies, investigations, and reports. 1700.5 Loan security activities.

1700.6 Issuances implementing procedure.

AUTHORITY: 7 U.S.C. 901-950(b); Title I, Subtitle D, Section 1403, Omnibus Budget Reconciliation Act of 1987, Pub. L. 100-203: Delegation of Authority by the Secretary of Agriculture, 7 CFR 2.23; Delegation of Authority by the Under Secretary for Small Community and Rural Development, 7 CFR 2.72; 7 U.S.C. 1921 et seq., and 44 FR 30313, May 25, 1979.

SOURCE: 28 FR 117, Jan. 4, 1963, unless otherwise noted. Redesignated at 31 FR 16225, Dec. 20, 1966.

§ 1700.1 Loans pursuant to section 4 of Rural Electrification Act.

(a) General. These loans are made to finance the construction and operation of generating plants, electric transmission and distribution lines or systems to provide initial and continued adequate electric service to persons in rural areas. The loans must be self-liquidating within a period of not to exceed thirty-five years, bear interest at the rate of two per centum per annum, and must be reasonably secured in the judgment of the Administrator. They may be made to persons, corporations, public bodies, and to cooperative, non-profit, or limited dividend associations. Preference is to be given to public bodies and to cooperative, non-profit, or limited dividend associations.

(b) Loan applications. Applications for these loans are made on forms prescribed by REA and supported by a

resolution of the applicant's board of directors. Copies of these standard forms are made available by REA on request. Applicants for loans from the Rural Electrification Administration are assisted, as necessary, in perfecting their organization, in the conduct of their surveys and in the preparation of the loan application. After the information provided by the application has been examined, the applicant is notified of any further steps to be taken. If an application is acceptable after legal, engineering, economic, and financial studies, funds are obligated by a loan contract and the borrower gives a note, mortgage and, in some cases, other security.

(c) Construction. Under the loan agreements REA reserves the right to approve the design and construction of the facilities, and to require progress reports on construction and audits of the borrower's records relating to construction.

(d) Advance of loan funds. Loan funds are advanced on the basis of requisitions submitted by borrowers in accordance with the loan contract.

§ 1700.2 Loans pursuant to section 5 of Rural Electrification Act.

(a) General. These loans are made to the borrowers of funds loaned under section 4 of the Rural Electrification Act for financing the wiring of the premises of persons in rural areas and for purchase and installation of electrical and plumbing appliances and equipment, including machinery. The loans are required to be repaid, generally over a period of ten years, and bear interest at two per centum per annum. The funds made available to REA borrowers under these loans are reloaned to their consumers.

(b) Loan applications. There is no standard or prescribed form of application for this type of loan. A letter accompanied by a resolution of the board of directors is submitted in support of the application setting forth the purposes for which the loan is requested and the amounts required for each purpose. Supplemental data is required of the applicant as necessary to complete the particular application. If the Administrator approves a loan

proposal, the applicant is notified and loan documents are forwarded for the signature of the borrower.

(c) Advance of loan funds. Loan funds are advanced on the basis of requisitions submitted by borrowers in accordance with the loan contract.

§ 1700.3 Loans pursuant to section 201 of Rural Electrification Act.

(a) General. These loans are made for the purpose of financing the improvement, expansion, construction, acquisition, and operation of telephone lines, facilities, or systems to furnish or improve telephone service in rural areas. Borrowers may be required to provide a portion of the investment themselves. The loans must be self-liquidating within a period of not to exceed thirty-five years, bear interest at the rate of two per centum per annum and must be reasonably secured in the judgment of the Administrator. The loans may be made to any type of commercial or non-profit corporation now providing or who may hereafter provide telephone service in rural areas. Preference is to be given to persons providing telephone service in rural areas, and to cooperative, nonprofit, limited dividend, or mutual associations.

(b) Loan applications. Applications for these loans are made on forms prescribed by REA, copies of which are made available by REA on request. Applicants for loans from the Rural Electrification Administration are assisted as necessary in perfecting their organization, in the conduct of their surveys and in the preparation of loan applications. After the information provided by the application has been examined, the applicant is notified of any further steps to be taken. If an application is acceptable after legal, engineering, economic, and financial studies, funds are obligated by a loan contract and the borrower gives a note, mortgage, and, in some cases, other security.

(c) Construction. Under the loan agreements, REA reserves the right to approve the design and construction of the facilities, and to require progress reports on construction and audits of the borrower's records relating to construction.

(d) Advance of loan funds. Loan funds are advanced on the basis of requisitions submitted by borrowers in accordance with the loan contract.

§ 1700.3a CATV loans and gurantees under the Consolidated Farm and Rural Development Act.

(a) General. Loans and loan guarantees may be made by the Administrator pursuant to the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) (Development Act) to finance community antenna television (CATV) services or facilities.

(b) Loan applications, construction and advance of loan funds. Section 1700.3(b) will applied with respect to applications for insured loans or loan guarantees under the Development Act for CATV purposes. § 1700.3(c) will be applied with respect to the construction of such facilities, and § 1700.3(d) will applied to the advance of funds on account of such insured loans or loan guarantees.

(c) Community facility loans for CATV purposes. Loans for CATV purposes which qualify as community facility loans may be made and insured by the Administrator under section 306 of the Development Act (7 U.S.C. 1926).

(d) Business and industrial loans for CATV purposes. Business and industrial loans and loan guarantees for CATV purposes may be made by the Administrator under Sec. 310B of the Development Act (7 U.S.C. 1932). The loan guarantee will provide for reimbursement to the lender for not more than 90 percent of the principal and interest. Interest rates of loans to be guaranteed will be at a rate agreed upon by the lender and the borrower.

[14 FR 39372, July 6, 1979]

§ 1700.3b Insured loans pursuant to section 305 of the Rural Electrification Act, as amended May 11, 1973.

(a) General. These loans are made by the Administrator for the purposes authorized by sections 4 and 201 of the Rural Electrification Act (see §§ 1700.1 and 1700.3) and though serviced by the Administrator, are sold with a contract of insurance by the Administrator. The standard interest rate on the