[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: 7CFR1726.301]

[Page 267-268]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
                      Subpart I--RUS Standard Forms
 
Sec. 1726.301  Borrower contractual obligations.

    (a) Loan agreement. As a condition of a loan or loan guarantee under 
the Rural Electrification 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 Contract Forms, Sec. 1724.304(c).
    (b) Compliance. If a borrower is required by this part or by the 
loan agreement to use a listed contract form, the borrower shall use the 
listed contracts in the format available from RUS or GPO. 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

[[Page 268]]

is not acceptable except where indicated in Sec. 1726.304(c).
    (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. Waiver requests should be made prior 
to issuing the bid package to bidders.
    (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 58286, Oct. 30, 1998]