[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: 7CFR1735.60]

[Page 318-319]
 
                          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 F--Mortgage Controls on Acquisitions and Mergers
 
Sec. 1735.60  Specific provisions.

    Source: 54 FR 14626, Apr. 12, 1989, unless otherwise noted. 
Redesignated at 55 FR 39395, Sept. 27, 1990.


    (a) The standard form of RUS mortgage contains certain provisions 
concerning mergers and acquisitions:
    (1) Article II, section 4(a) requires the borrower to obtain the 
written approval of the majority noteholders before taking any action to 
reorganize, or to consolidate with or merge into any other corporation.

[[Page 319]]

    (2) Article II, section 4(b), if made applicable, provides certain 
exceptions to the requirements of section 4(a).
    (b) Similar provisions are contained in other forms of documents 
executed by borrowers that have not entered into the standard form of 
mortgage.
    (c) Mortgages and loan contracts may contain other provisions 
concerning mergers and acquisitions.

[54 FR 14626, Apr. 12, 1989. Redesignated at 55 FR 39395, Sept. 27, 
1990, as amended at 62 FR 46871, Sept. 5, 1997]