[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1703.16]

[Page 28]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1703--RURAL DEVELOPMENT--Table of Contents
 
      Subpart B--Rural Economic Development Loan and Grant Program
 
Sec. 1703.16  Eligibility.

    Zero-interest loans and grants may be made to any borrower that is 
not delinquent on any outstanding Federal debt or in bankruptcy 
proceedings. However, a zero-interest loan or grant will not be made to 
a borrower during any period in which the Administrator has determined 
that no additional financial assistance of any nature should be provided 
to the borrower pursuant to any provision of the Act. The determination 
to suspend eligibility for assistance under this subpart will be based 
on one or more of the following factors:
    (a) The borrower's demonstrated unwillingness to exercise diligence 
in repaying RUS loans or loan guarantees that results in the 
Administrator being unable to find that a loan, or loan guaranteed by 
RUS, would be repaid within the time agreed;
    (b) The borrower's demonstrated unwillingness to meet requirements 
in RUS's legal documents or regulations; or
    (c) Other actions on the part of the borrower that thwart the 
achievement of the objectives of the RUS program.