[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: 7CFR1735.94]

[Page 324]
 
                          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. 1735.94  Final approval and closing procedure.

    (a) Legal documents relating to the acquisition or merger, including 
copies of required franchises, commission orders, permits, licenses, 
leases, title evidence, corporate proceedings, and contracts to be 
assigned to the purchaser shall be forwarded to the Area Office prior to 
closing.
    (b) The Administrator will not give final approval to any 
acquisition or merger until all RUS requirements relating to the 
transactions are satisfied.
    (c) Following the Administrator's final approval of the proposal, 
the Area Office shall inform the borrower in writing of the necessary 
legal and other actions required for the advance of loan funds to 
finance the acquisition, including the submission, in form and substance 
satisfactory to the Administrator, of (1) all information and documents 
necessary to demonstrate that the transaction has been completed, and 
(2) all loan contracts, notes, mortgages, and related documents and 
materials required by RUS.
    (d) Deeds reflecting the change in ownership, executed bills of 
sale, and opinions of counsel shall be forwarded to the Area Office 
following closing.
    (e) RUS will not advance loan funds to furnish or improve service in 
the acquired or merged areas until the Administrator has given final 
approval and the transaction has been closed. RUS may, however, advance 
funds if it determines that loan security will not be jeopardized.
    (f) At the discretion of RUS, a GFR may be present at the closing to 
assist the borrower and protect the interests of RUS. Under certain 
circumstances the closing may take place prior to RUS granting final 
approval for the transaction and the execution of amended loan security 
documents.