[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: 7CFR1737.22]

[Page 328-330]
 
                          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 C--The Loan Application
 
Sec. 1737.22  Supplementary information.

    RUS requires additional information in support of the loan 
application form. The information listed in paragraphs (a), (b), and (c) 
of this section must be submitted as part of the loan application as 
specified in 7 CFR 1737.21.
    (a) The following must be submitted by all initial loan applicants. 
Borrowers seeking subsequent loans must submit any changes in these 
items since they were last submitted.
    (1) Name of attorney and manager, and certified copies of board 
resolutions selecting them.
    (2) Certified copy of articles of incorporation showing evidence of 
filing

[[Page 329]]

with the Secretary of State and in county records.
    (3) Certified copies of bylaws and board minutes showing their 
adoption.
    (4) Certified sample stock certificates.
    (5) Amounts of common and preferred stock issued and outstanding.
    (6) Names, addresses, business affiliations, and stockholdings of 
the manager, officers, directors, and other principal stockholders 
(those owning at least 20 percent of borrower's voting stock).
    (7) Certified copies of real estate deeds showing all recording 
information.
    (8) Service agreements, such as for management or system 
maintenance.
    (9) Certified copies of existing leases, except those for vehicles, 
furniture and office equipment, and computer equipment.
    (10) Certified copies of existing franchises.
    (11) Information on any franchises required as a result of the 
proposed loan project.
    (12) Federal Communications Commission (FCC) authorizations.
    (13) Certified copy of a certificate of convenience and necessity 
(or its equivalent), or information demonstrating the nonduplication of 
reasonably adequate facilities, for all areas in the loan project.
    (14) For toll, operator office, traffic, and EAS agreements, the 
names of all parties to the agreement, the type of agreement, and the 
effective and termination dates of the agreement and annexes, and the 
exchanges involved.
    (15) Copies of rate schedules. (A copy of the tariff must be 
available for review by the RUS field representative.)
    (16) Executed copy of RUS Form 291, ``Certification of Nonsegregated 
Facilities''.
    (17) A sketch or map showing the existing and proposed service 
areas.
    (18) Executed assurance that the borrower will comply with the 
Uniform Relocation Assistance and Real Property Acquisitions Policies 
Act of 1970, as amended (see 49 CFR 24.4).
    (19) A certification (which is included on RUS Form 490, 
``Application for Telephone Loan or Guarantee'') that the borrower has 
been informed of the collection options listed below that the Federal 
government may use to collect delinquent debt. RUS and other government 
agencies are authorized to take any or all of the following actions in 
the event that a borrower's loan payments become delinquent or the 
borrower defaults (OMB Circular A-129 defines ``delinquency'' for direct 
or guaranteed loans as debt more than 31 days past due on a scheduled 
payment):
    (i) Report the borrower's delinquent account to a credit bureau.
    (ii) Assess additional interest and penalty charges for the period 
of time that payment is not made.
    (iii) Assess charges to cover additional administrative costs 
incurred by the Government to service the borrower's account.
    (iv) Offset amounts owed to the borrower under other Federal 
programs.
    (v) Refer the borrower's debt to the Internal Revenue Service for 
offset against any amount owed to the borrower as an income tax refund.
    (vi) Refer the borrower's account to a private collection agency to 
collect the amount due.
    (vii) Refer the borrower's account to the Department of Justice for 
litigation in the courts.
    (20) A certification, signed by the president of the borrower, that 
the borrower is participating in the State's telecommunications 
modernization plan (for additional information concerning the plan, see 
7 CFR part 1751, subpart B). This certification is not required if the 
borrower is seeking a guaranteed loan.

All of the actions in paragraph (a)(19) of this section can and will be 
used to recover any debts owed when it is determined to be in the 
interest of the Government to do so. The notification and the required 
form of certification in paragraph (a)(19) of this section are included 
on RUS Form 490, Application for Telephone Loan or Guarantee.
    (b) The following must be submitted by all initial loan applicants 
and borrowers seeking subsequent loans:
    (1) Certified financial statements for the last 3 years.
    (2) Toll settlement statements and related data.
    (3) Present exchange rates and any pending changes.

[[Page 330]]

    (4) Borrower's Environmental Report (BER)--See 7 CFR part 1794.
    (5) A ``Certification Regarding Lobbying'' for loans, or a 
``Statement for Loan Guarantees and Loan Insurance'' for loan 
guarantees, and when required, an executed Standard Form LLL, 
``Disclosure of Lobbying Activities,'' (see section 319, Public Law 101-
121 (31 U.S.C. 1352)).
    (6) Executed copy of Form AD-1047, ``Certification Regarding 
Debarment, Suspension, and Other Responsibility Matters--Primary Covered 
Transactions'' (see appendix A to 7 CFR part 3017).
    (7) Borrower's determination of loan maturity, including information 
noted in Sec. 1735.43(a) of this chapter as required.
    (8) Approved depreciation rates for items under regulatory authority 
jurisdiction.
    (9) A statement that the borrower is or is not delinquent on any 
Federal debt, such as income tax obligations or a loan or loan guarantee 
from another Federal agency. If delinquent, the reasons for the 
delinquency must be explained and RUS will take such explanation into 
consideration in deciding whether to approve the loan. RUS Form 490, 
``Application for Telephone Loan or Guarantee,'' contains a section for 
providing the required statement and any appropriate explanation.
    (10) Any other supporting data required by the Administrator.
    (c) The following must be submitted for all borrowers requesting 
funds for refinancing:
    (1) Copies of all bonds, notes, mortgages, and contracts covering 
outstanding indebtedness proposed to be refinanced.
    (2) For each note or bond, the name of the creditor, original amount 
of debt and amount as of last year-end, purpose of debt, dates incurred 
and due, interest rates, and repayment terms.
    (3) Justification for refinancing and evidence that the use of loan 
funds is necessary and incidental to furnishing or improving rural 
telephone service. See 7 CFR 1735.21.
    (d) Borrowers requesting loan funds for acquisitions should refer to 
RUS bulletins 320-4, 321-2, 325-1, and 326-1 for requirements.

(Approved by the Office of Management and Budget under control number 
0572-0079)

[54 FR 13356, Apr. 3, 1989. Redesignated at 55 FR 39396, Sept. 27, 1990, 
as amended at 56 FR 26599, June 10, 1991, 58 FR 66256, Dec 20, 1993]