[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: 7CFR1735.10]

[Page 305]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1735--GENERAL POLICIES, TYPES OF LOANS, LOAN REQUIREMENTS--TELECOMMUNICATIONS PROGRAM--Table of Contents
 
               Subpart B--Loan Purposes and Basic Policies
 
Sec. 1735.10  General.

    Source: 54 FR 13351, Apr. 3, 1989, unless otherwise noted. 
Redesignated at 55 FR 39395, Sept. 27, 1990.


    (a) The Rural Utilities Service (RUS) makes loans to furnish and 
improve telephone service in rural areas. Loans made or guaranteed by 
the Administrator of RUS will be made in conformance with the Rural 
Electrification Act of 1936 (RE Act), as amended (7 U.S.C. 901 et seq.), 
and 7 CFR chapter XVII. RUS provides borrowers specialized and technical 
accounting, engineering, and other managerial assistance in the 
construction and operation of their facilities when necessary to aid the 
development of rural telephone service and to protect loan security.
    (b) RUS will not make hardship loans, RUS cost-of-money loans, or 
RTB loans for any wireline local exchange service or similar fixed-
station voice service that, in RUS' opinion, is inconsistent with the 
borrower achieving the requirements stated in the State's 
telecommunication modernization plan within the time frame stated in the 
plan (see 7 CFR part 1751, subpart B), unless RUS has determined that 
achieving the requirements as stated in such plan is not technically or 
economically feasible.
    (c) A borrower receiving a loan to provide mobile telecommunications 
services or special telecommunications services shall be considered to 
be participating in the state telecommunications plan (TMP) with respect 
to the particular loan so long as the loan funds are not used in a 
manner that, in RUS' opinion, is inconsistent with the borrower 
achieving the goals set forth in the plan, except that a borrower must 
comply with any portion of a TMP made applicable to the borrower by a 
state commission with jurisdiction.
    (d) RUS will not deny or reduce a loan or an advance of loan funds 
based on a borrower's level of general funds.
    (e) No fees or charges are assessed for any type of loan or 
guarantee provided by RUS or the Rural Telephone Bank (RTB).
    (f) The Administrator may use consultants funded by the borrower for 
financial, legal, engineering, and other technical advice in connection 
with the review of a borrower's loan application.

[58 FR 66253, Dec. 20, 1993, as amended at 59 FR 17464, Apr. 13, 1994; 
65 FR 42619, July 11, 2000; 65 FR 54403, Sept. 8, 2000]