[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: 7CFR1735.95]

[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. 1735.95  Unadvanced loan funds.

    (a) The unadvanced loan funds of a borrower that will not be a 
survivor of an acquisition or merger shall be advanced only to the 
survivor and only under the following circumstances.
    (1) If the funds are to be used for purposes approved in prior 
loans, the funds shall be advanced after the effective date of the 
proposed action only when all loan contract prerequisites have been met 
and documents have been submitted in form and substance satisfactory to 
the Administrator.
    (2) If the funds are to be used for new purposes, then in addition 
to the requirements in (a)(1) of this section, RUS must also approve the 
change in purpose.
    (b) No loan or other money in the construction fund shall be used to 
finance facilities outside areas to be served by projects approved by 
RUS.