[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: 7CFR1744.55]

[Page 349-350]
 
                          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. 1744.55  Application procedures.

    (a) Requests for information regarding applications for lien 
accommodations or subordination under this part should be addressed to 
the Assistant Administrator, Telecommunications Program, Rural Utilities 
Service, Washington, DC 20250-1590.
    (b) An application for a lien accommodation or subordination shall 
include the following supporting information:
    (1) A board Resolution from the applicant requesting the lien 
accommodation or subordination and stating the general purpose for which 
the funds from the private lender will be used, the proposed amount of 
the loan, and the proposed terms and conditions of the loan;
    (2) An opinion from counsel representing the applicant that the 
applicant has the authority under its articles of incorporation, bylaws, 
and under applicable state law to undertake the project;
    (3) Engineering and pertinent studies related to the projects or 
purposes to be financed, when applicable;
    (4) Feasibility studies with pro forma financial statements showing 
the ability to repay the loan and provide an appropriate margin or net 
income;
    (5) Any other information or documentation deemed pertinent by the 
borrower or the Administrator in support of the application.
    (c) When the Administrator makes a determination that an application 
for an accommodation or subordination will not be approved the 
Administrator shall set forth the reasons therefor in writing and 
furnish such determination

[[Page 350]]

and reasons to the borrower within 30 days of the determination.

[51 FR 32430, Sept. 12, 1986 Redesignated at 55 FR 39396, Sept. 27, 
1990. And further redesignated at 66 FR 41760, Aug. 9, 2001 and amended 
at 66 FR 41763, Aug. 9, 2001]