[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: 7CFR1735.75]

[Page 321-322]
 
                          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. 1735.75  Interim financing.

    (a) A borrower may submit a written request for RUS approval of 
interim financing if it is necessary to close an acquisition before the 
loan to finance the acquisition is approved. Loan funds shall not be 
used to reimburse acquisition costs unless RUS has granted approval of 
interim financing prior to the closing of the acquisition.
    (b) RUS will approve interim financing of acquisitions only in cases 
where loan funds cannot be made available in time for the closing.
    (c) RUS will not approve interim financing unless the following 
information is acceptable:
    (1) A written request for approval of interim financing, including a 
brief description of the acquisition, an explanation of the urgency of 
proceeding with the acquisition, and the source of funds to be used.
    (2) A completed RUS Form 490, ``Application for Telephone Loan or 
Loan Guarantee.'' See 7 CFR part 1737.
    (3) The portions of the Loan Design that cover the proposed 
acquisition, including cost estimates and information

[[Page 322]]

on any investments in nonrural areas. See 7 CFR 1737.
    (4) The information required in Sec. 1735.74 (a)(1) through (a)(8), 
(a)(14) and (b)(1).
    (5) Any other data deemed necessary by the Administrator to approve 
the interim financing of the acquisition.
    (d) Furthermore, RUS will not approve interim financing if, in RUS's 
judgment, the proposed acquisition will not qualify for RUS financing or 
the proposed interim financing presents unacceptable loan security risks 
to RUS.
    (e) Because RUS approval of interim financing is not a commitment to 
make a loan, RUS will not approve interim financing unless the borrower 
is prepared to assume responsibility for financing all obligations 
incurred.
    (f) If the borrower plans to proceed with the closing after 
receiving RUS approval of interim financing, it must first receive 
preliminary approval from RUS. See Sec. 1735.90
    (g) See 7 CFR part 1737 for regulations on interim financing for 
construction.
    (h) See 7 CFR part 1744, subpart B for conditions under which RUS 
will provide shared first lien and/or a lien accommodation for non-RUS 
lenders.