[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: 7CFR1744.205]

[Page 366]
 
                          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. 1744.205  Determinations and application of limitations described in Sec. 1744.202.

    (a) RUS will not include qualified investments, including qualified 
investments in affiliated companies, in calculating the amount of 
dividend or capital distributions a borrower may make under its RUS 
mortgage.
    (b) A borrower's investment in its net plant shall not be considered 
a rural development investment for purposes of calculating the maximum 
investment ratio or the minimum total assets ratio.
    (c) The borrower's net worth and total assets shall be determined 
using the balances of the respective accounts of the borrower as of 
December 31 of the last complete calendar year preceding the date on 
which the borrower's maximum investment ratio and minimum total assets 
ratio are calculated.
    (d) All determinations required to be made under 7 U.S.C. 926 or 
this subpart will be made in accordance with the Uniform System of 
Accounts (USoA)(47 CFR part 32). References to specific USoA accounts 
shall include revised or replacement accounts.