[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: 7CFR1777.41]

[Page 1001-1002]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1777--SECTION 306C WWD LOANS AND GRANTS--Table of Contents
 
Sec. 1777.41  Individual loans and grants.

    (a) The amount of loan and grant funds approved by the Agency will 
be based on the need shown in the application and an implementation plan 
submitted by the applicant. The implementation plan will include such 
things as: purpose, how funds will be used, proposed application 
process, construction requirements, control and disbursement of funds, 
etc. The implementation plan will be attached to RUS Bulletin 1777-1.
    (b) RUS Bulletin 1777-1 is a Memorandum of Agreement which sets 
forth the procedures and regulations for making and servicing loans and 
grants made by applicants to individuals. The State Program Official is 
authorized to enter into a Memorandum of Agreement with any applicant 
providing loans and/or grants to individuals. The Memorandum of 
Agreement can be amended to comply with State law and recommendations by 
the Office of General Counsel. It may also be amended to eliminate 
references to loans and/or grants if no loan and/or grant is involved. 
The State Program Official is responsible for:
    (1) Ensuring that all provisions of the Agreement are understood.
    (2) Determining that the applicant has the ability to make and 
service loans and/or grants in the manner outlined in the Agreement.
    (c) Agency funds remaining after providing individual loans and/or 
grants will be returned to the Agency. The funds should be disbursed to 
individuals within 1 year from the date water and/or waste disposal 
service is available to the individuals. The State Program Official can 
make an exception to

[[Page 1002]]

this 1 year requirement if written justification is provided by the 
applicant.