[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: 7CFR1737.80]

[Page 338-339]
 
                          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 I--Characteristics Letter
 
Sec. 1737.80  Description of characteristics letter.


    (a) After all of the studies and exhibits for the proposed loan have 
been prepared, but before the loan is recommended, RUS shall inform the 
borrower, in writing, of the characteristics of the proposed loan. The 
purpose of the characteristics letter is to inform the borrower and 
obtain its concurrence, before further consideration by RUS of the loan 
approval and the preparation of legal documents relating to the loan, in 
such matters as the amount of the proposed loan, its purposes, rate of 
interest, loan security requirements, and other prerequisites to the 
advance of loan funds. The letter,

[[Page 339]]

whether or not concurred in by the borrower, does not commit RUS to 
approve the loan on these or any other terms.
    (b) The Forecast of Revenues and Expenses and a copy of RUS Form 
493, ``Telephone Loan Budget,'' shall be enclosed with the 
characteristics letter. This copy of the budget shall be subject to 
change by RUS with the borrower's agreement.

[54 FR 13356, Apr. 3, 1989. Redesignated at 55 FR 39396, Sept. 27, 1990, 
as amended at 56 FR 26600, June 10, 1991]