[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: 7CFR1744.200]

[Page 363]
 
                          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 E--Borrower Investments
 
Sec. 1744.200  General statement.

    Source: 58 FR 52642, Oct. 12, 1993, unless otherwise noted.


    (a) RUS telephone borrowers are encouraged to utilize their own 
funds to participate in the economic development of rural areas, 
provided that such activity does not impair a borrower's ability to 
provide modern telecommunications services at reasonable rates or to 
repay its indebtedness to RUS and other lenders. When considering loans, 
investments, or guarantees, borrowers are expected to act in accordance 
with prudent business practices and in conformity with the laws of the 
jurisdictions in which they serve.
    (b) This subpart E applies to both RUS and RTB borrowers. For the 
purposes of RTB borrowers, as used in this subpart E, if a borrower has 
received a loan from the RTB, RUS means RTB, and Administrator means 
Governor unless the text indicates otherwise.