[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: 7CFR1735.47]

[Page 317]
 
                          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 D--Terms of Loans
 
Sec. 1735.47  Rescissions of loans.

    (a) Rescission of a loan may be requested by a borrower at any time. 
To rescind a loan, the borrower must demonstrate to RUS that:
    (1) The purposes of the loan being rescinded have been completed;
    (2) Sufficient funds are available from sources other than RUS, RTB 
or FFB to complete the purposes of the loan being rescinded; or
    (3) The purposes of the loan are no longer required to extend or 
improve telephone service in rural areas.
    (b) Borrowers submitting loan applications containing purposes 
previously covered by a loan that has been rescinded shall include in 
the application an explanation, satisfactory to RUS, of the change of 
conditions since the rescission that re-establishes the need for those 
purposes.
    (c) RUS shall not initiate the rescission of a loan unless all of 
the purposes for which telephone loans have been made to the borrower 
under the Act have been accomplished with funds provided under the Act.

[56 FR 26598, June 10, 1991]