[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: 7CFR1744.20]

[Page 341]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1744--POST-LOAN POLICIES AND PROCEDURES COMMON TO GUARANTEED AND INSURED TELEPHONE LOANS--Table of Contents
 
         Subpart B--Lien Accommodations and Subordination Policy
 
Sec. 1744.20  General.

    Source: 51 FR 32430, Sept. 12, 1986, unless otherwise noted. 
Redesignated at 55 FR 39396, Sept. 27, 1990.


    (a) Recent changes in the telecommunications industry, including 
deregulation and technological developments, have caused Rural Utilities 
Service (RUS) borrowers and other organizations providing 
telecommunications services to consider undertaking projects that 
provide new telecommunications services and other telecommunications 
services not ordinarily financed by RUS. Although some of these services 
may not be eligible for financing under the Rural Electrification Act of 
1936 (RE Act), these services may nevertheless advance RE Act objectives 
where the borrower obtains financing from private lenders. The 
borrower's financial strength and the assurance of repayment of 
outstanding Government debt may be improved as a result of providing 
such telecommunications services.
    (b) To facilitate the financing of new services and other services 
not ordinarily financed by RUS, RUS is willing to consider accommodating 
the Government's lien on telecommunications borrowers' systems or 
accommodating or subordinating the Government's lien on after-acquired 
property of telecommunications borrowers. To expedite this process, 
requests for lien accommodations meeting the requirements of 
Sec. 1744.30 will receive automatic approval from RUS.
    (c) This subpart establishes RUS policy with respect to all requests 
for lien accommodations and subordinations for loans from private 
lenders. For borrowers that do not qualify for automatic lien 
accommodations in accordance with Sec. 1744.30, RUS will consider lien 
accommodations for RE Act purposes under Sec. 1744.40 and non-Act 
purposes under Sec. 1744.50.

[66 FR 41758, Aug. 9, 2001]