[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: 7CFR1753.56]

[Page 399-400]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1753--TELECOMMUNICATIONS SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
      Subpart G--Outside Plant Major Construction by Force Account
 
Sec. 1753.56  General.

    Source: 55 FR 3572, Feb. 2, 1990, unless otherwise noted. 
Redesignated at 55 FR 39397, Sept. 27, 1990.


    (a) This subpart implements and explains the provisions of the loan 
documents setting forth the requirements and the procedures to be 
followed by borrowers for outside plant major construction by the force 
account method with RUS loan funds. Terms used in this subpart are 
defined in Sec. 1753.2 and RUS Contract Form 515.
    (b) A borrower shall not use the force account method for 
construction financed with loan funds unless prior RUS approval has been 
obtained.
    (c) Generally, RUS will not approve the force account method for 
major

[[Page 400]]

outside plant construction for the initial loan to a borrower.
    (d) The Force Account Proposals (FAPs) are subject to review and 
approval by RUS.
    (e) The FAP is approved by RUS on the basis of estimated labor and 
material costs. The FAP is closed based on the borrower's actual cost of 
performing the construction. RUS will provide loan funds only up to the 
amount determined by the completed assembly units priced at the unit 
prices in the approved FAP.

(Approved by the Office of Management and Budget under control number 
0572-0062)