[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: 7CFR1737.101]

[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. 1737.101  Amounts spent for preloan activities.

    If the borrower desires to credit amounts spent for preloan 
activities against any equity or general funds required by the loan 
contract, it shall submit an itemized statement of such expenditures to 
the Area Office. These expenditures will be accounted for on RUS Form 
503, ``Release of Telephone Loan Funds,'' if RUS determines that the 
amounts spent are reasonable based on normal industry practice and that 
the procedures set forth in 7 CFR part 1737, subpart D, have been 
complied with. Statements of preloan expenditures will be verified as to 
accuracy by loan fund audits.

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