[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: 7CFR1753.11]

[Page 379-380]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1753--TELECOMMUNICATIONS SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
                           Subpart A--General
 
Sec. 1753.11  Contract amendments.

    (a) The borrower must obtain RUS approval before execution of any 
amendment to a contract if
    (1) The amendment alters the terms and conditions of the contract or 
changes the scope of the project covered by the contract regardless of 
the amount of the contract before amendment,
    (2) The amendment increases the amount to be paid under the contract 
by 20% or more, or
    (3) The amendment causes an unbonded contract to require a 
contractor's performance bond. This would occur when a contract that is 
executed in an amount below that requiring a performance bond by 7 CFR 
part 1788, subpart C, is amended to an amount above that amount.
    (b) Advance RUS approval to execute other contract amendments is not 
required. These amendments may be submitted to RUS at any time prior to 
closeout. If a borrower wishes to receive an advance of funds based on 
an amended contract amount (i.e., amendments that increase a contract by 
less than 20%), the borrower may initiate an increase in the amount 
approved for advance by submitting three copies of the amendment to RUS 
for approval.
    (c) For each amendment executed, the borrower shall make certain 
that:

[[Page 380]]

    (1) The contractor's bond covers the additional work to be 
performed. If the amendment by itself (or together with preceding 
amendments) increases the original contract price by 20% or more, a bond 
extension will be required to bring the penal sum of the bond to the 
total amended contract price.
    (2) If an amendment covers construction in a county or state not 
included in the original contract, the borrower and contractor are 
licensed to do business in that location.
    (d) Upon execution of any amendment that causes the amended contract 
amount to exceed the original contract amount by 20% or more, three 
copies of the amendment shall be submitted to RUS for approval.

[54 FR 39267, Sept. 25, 1989. Redesignated at 55 FR 39396, Sept. 27, 
1990, as amended at 64 FR 16605, Apr. 6, 1999]