[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: 7CFR1735.71]

[Page 320]
 
                          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 G--Acquisitions Involving Loan Funds
 
Sec. 1735.71  Nonrural areas.

    Loan funds may be approved for the acquisition and improvement of 
facilities to serve nonrural subscribers only if the principal purpose 
of the loan is to furnish and improve rural service and only if the use 
of loan funds to serve nonrural subscribers is necessary and incidental 
to the principal purpose of the loan. For example, when the acquisition 
of an existing system located in and serving a nonrural area is 
necessary to serve as the nucleus of an expanded system to furnish area 
coverage service in rural areas, the loan may include funds to finance 
the acquisition. Approval for the use of loan funds in these 
circumstances shall be made only on a case by case basis by the 
Administrator.