[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: 7CFR1724.71]

[Page 244]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1724--ELECTRIC ENGINEERING, ARCHITECTURAL SERVICES AND DESIGN POLICIES AND PROCEDURES--Table of Contents
 
                      Subpart F--RUS Contract Forms
 
Sec. 1724.71  Borrower contractual obligations.

    (a) Loan agreement. As a condition of a loan or loan guarantee under 
the RE Act, borrowers are normally required to enter into RUS loan 
agreements pursuant to which the borrower agrees to use RUS standard 
forms of contracts for construction, procurement, engineering services 
and architectural services financed in whole or in part by the RUS loan. 
Normally, this obligation is contained in section 5.16 of the loan 
contract. To comply with the provisions of the loan agreements as 
implemented by this part, borrowers must use those forms of contract 
(hereinafter sometimes called``listed contract forms'') identified in 
the List of Required Standard Contract Forms contained in 
Sec. 1724.74(c).
    (b) Compliance. If a borrower is required by this part to use a 
listed contract form, the borrower shall use the listed contract form in 
the format available from RUS. The forms shall not be retyped, changed, 
modified, or altered in any manner not specifically authorized in this 
part or approved by RUS in writing. Any modifications approved by RUS 
must be clearly shown so as to indicate the difference from the listed 
contract form. Electronic reproduction is not acceptable.
    (c) Amendment. Where a borrower has entered into a contract in the 
form required by this part, no change may be made in the terms of the 
contract, by amendment, waiver or otherwise, without the prior written 
approval of RUS.
    (d) Waiver. RUS may waive for good cause, on a case by case basis, 
the requirements imposed on a borrower pursuant to this part. Borrowers 
seeking a waiver by RUS must provide RUS with a written request 
explaining the need for the waiver.
    (e) Violations. A failure on the part of the borrower to use listed 
contracts as prescribed in this part is a violation of the terms of its 
loan agreement with RUS and RUS may exercise any and all remedies 
available under the terms of the agreement or otherwise.

[63 FR 58285, Oct. 30, 1998]