[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: 7CFR1735.90]

[Page 323]
 
                          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 I--Requirements for All Acquisitions and Mergers
 
Sec. 1735.90  Preliminary approvals.

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


    (a) In cases where the borrower's schedule for completion of the 
proposed action leaves insufficient time for RUS to prepare and process 
the required documentation, including new mortgages and replacement 
notes, the borrower may request RUS to give preliminary approval to the 
acquisition or merger. However, the borrower may not obtain additional 
loan funds until the documentation is completed to RUS's satisfaction.
    (b) Consideration of preliminary approvals generally will not be 
practicable in cases in which compensating benefits are required.
    (c) RUS will not give preliminary approval when the lien of the 
mortgage on after-acquired property may be affected.
    (d) Before RUS will grant preliminary approval, the borrower shall 
submit:
    (1) Merger or acquisition documents required by state law;
    (2) Acquisition agreements covering the transaction;
    (3) Any required franchises, licenses, and permits;
    (4) All required regulatory body approvals;
    (5) All required corporate actions;
    (6) Leases, contracts, and evidence of titles to be assigned to the 
purchaser; and
    (7) The latest audited financial statements for any nonborrowers 
involved.
    (e) If the information in (d) of this section is acceptable to RUS, 
the borrower may proceed with the closing.

(Approved by the Office of Management and Budget under control number 
0572-0084)