[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: 7CFR1737.100]

[Page 340]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1737--PRE-LOAN POLICIES AND PROCEDURES COMMON TO INSURED AND GUARANTEED TELECOMMUNICATIONS LOANS--Table of Contents
 
                  Subpart K--Release of Funds Procedure
 
Sec. 1737.100  Prerequisites to the release and advance of funds.


    (a) Standard prerequisites to the advance of funds, generally 
applied to all loans, are set forth in Article II of the form of loan 
contract attached as appendix A to 7 CFR part 1758. Additional 
prerequisites may be added on a case by case basis to the loan contract.
    (b) Before any loan funds can be advanced, RUS must approve a 
release of funds.
    (c) RUS approves the release of funds only after it determines that 
all prerequisites to the advance of loan funds have been met or funds 
should be advanced even though certain loan contract prerequisites 
remain unsatisfied.
    (d) Following release approval, loan funds and related nonloan funds 
may be advanced in accordance with 7 CFR part 1744.
    (e) The borrower may be required to discharge indebtedness and/or to 
close acquisitions before advances are made for construction purposes. 
In such cases, the borrower shall submit evidence that these actions 
have been completed. If the evidence is satisfactory to RUS, RUS shall 
allow the remaining loan funds to be advanced in accordance with 7 CFR 
part 1744.

(Approved by the Office of Management and Budget under control number 
0572-0085)