[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: 7CFR1737.50]

[Page 335]
 
                          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 F--Review of Application Procedures
 
Sec. 1737.50  Review of completed loan application.


    (a) The completed loan application consists of:
    (1) A completed RUS Form 490, ``Application for Telephone Loan or 
Loan Guarantee;''
    (2) A completed certification Form AD-1047, ``Certification 
Regarding Debarment, Suspension, and Other Responsibility Matters--
Primary Covered Transactions,'' (see appendix A to 7 CFR part 3017);
    (3) A market survey called the Area Coverage Survey (ACS);
    (4) The plan and associated costs for the proposed construction, 
called the Loan Design (LD);
    (5) Evidence that the borrower is participating in a 
telecommunications modernization plan in the state where the proposed 
construction will occur, unless the borrower is seeking a guaranteed 
loan; and
    (6) Various supplementary information.

See 7 CFR part 1737 for additional information.
    (b) RUS shall review the completed loan application, particularly 
noting subscriber data, grades of service, extended area service (EAS), 
connecting company commitments, commercial facilities, system and 
exchange boundaries, and proposed acquisitions. RUS shall review the LD 
to determine that the system design is acceptable to RUS, that the 
design is technically correct, that the cost estimates are reasonable, 
and that the design provides for area coverage service. RUS shall also 
review the population and incorporation status of all communities served 
or to be served by the borrower to determine if any nonrural areas are 
served and if municipal franchises are required. Any RUS lending for 
nonrural areas must be in accordance with 7 CFR part 1735. RUS shall 
also check the ``List of Parties Excluded from Federal Procurement of 
Nonprocurement Programs'', compiled, maintained and distributed by 
General Services Administration, to determine whether the borrower is 
debarred, suspended, ineligible, or voluntarily excluded (see 7 CFR 
3017.505).
    (c) RUS will notify the borrower if RUS recommends major changes in 
subscriber projections, design, cost estimates, or other significant 
matters. RUS will not continue loan processing until RUS and the 
borrower agree on all major changes.

[54 FR 13356, Apr. 3, 1989; 54 FR 16194, Apr. 21, 1989. Redesignated at 
55 FR 39396, Sept. 27, 1990; 58 FR 66256, Dec. 20, 1993]