[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: 7CFR1703.30]

[Page 40-41]
 
                          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. 1703.30  Approval of agreements.

    (a) The Administrator must approve any agreements between the 
borrower and the owner(s) of the project, those undertaking the project, 
or any intermediary that will re-lend or transfer the proceeds of the 
RUS funds, that the Administrator deems necessary.
    (b) Borrowers must obtain the Administrator's approval of any loan, 
grant or security agreement, mortgage or note between the borrower and 
the owner(s) of the project, those undertaking the project or any 
intermediary that will re-lend or transfer the proceeds of the RUS 
funds, prior to the advance of RUS zero-interest loan or

[[Page 41]]

grant funds to the borrower. The borrower must receive the 
Administrator's approval of the final draft version of the documents 
prior to their execution.
    (c) Borrowers must obtain the Administrator's written approval prior 
to revising or amending any loan, grant or security agreement, mortgage 
or note that has been reviewed and approved by the Administrator 
pursuant to paragraph (b) of this section. Additionally, the borrower 
must obtain the Administrator's written approval prior to executing, 
revising or amending any other agreement, in connection with the 
project, between the borrower and the owner(s) of the project, those 
undertaking the project or any intermediary that will re-lend or 
transfer the proceeds of the RUS funds.
    (d) The borrower and the owner(s) of the project, or those 
undertaking the project, should make agreements and prepare documents in 
accordance with all applicable laws.

(Approved by the Office of Management and Budget under control number 
0572-0090)

[57 FR 44317, Sept. 25, 1992, as amended at 59 FR 11711, Mar. 14, 1994; 
59 FR 38341, July 28, 1994]