[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: 7CFR1735.62]

[Page 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. 1735.62  Approval of acquisitions and mergers.

    (a) If a proposal is unsatisfactory to RUS, then RUS shall inform 
the borrower in writing of those features it considers objectionable 
and, as appropriate, recommend corrective action.
    (b) If a proposal is satisfactory to RUS, then RUS shall inform the 
borrower in writing of its approval and any conditions of such approval. 
Among the conditions of approval are the following:
    (1) RUS shall require a compensating benefit in return for any 
relinquishment, impairment, or waiver of its rights or powers.
    (2) If the survivor is an affiliate of another company, RUS shall 
require any investments in, advances to, accounts receivable from, and 
accounts payable to the affiliated company contrary to mortgage 
provisions shall be eliminated in a manner satisfactory to the 
Administrator.
    (3) RUS requires that the borrower agree not to extend credit to, 
perform services for, or receive services from any affiliated company 
unless specifically authorized in writing by the Administrator or 
pursuant to contracts satisfactory in form and substance to the 
Administrator.
    (4) RUS may require the borrower to execute additional mortgages, 
loan agreements, and associated documentation.