[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: 7CFR1735.18]

[Page 308-309]
 
                          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. 1735.18  Additional equity.

    If determined by the Administrator to be necessary for loan 
security, a borrower applying for an initial loan shall increase its net 
worth as a percentage of assets to the highest level recorded,

[[Page 309]]

not to exceed 40 percent, at the end of any calendar quarter in the 
period beginning 2 years prior to the receipt by RUS of the borrower's 
loan application form (RUS Form 490). This restoration to the higher 
level of net worth shall take place before RUS will determine the 
feasibility of the proposed loan.