[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: 7CFR1780.81]

[Page 1064-1065]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1780--WATER AND WASTE LOANS AND GRANTS--Table of Contents
 
 Subpart D--Information Pertaining to Preparation of Notes or Bonds and 
          Bond Transcript Documents for Public Body Applicants
 
Sec. 1780.81  Policies related to use of bond counsel.

    The applicant is responsible for preparation of bonds and bond 
transcript documents. The applicant will obtain the services and opinion 
of recognized bond counsel experienced in municipal financing with 
respect to the validity of a bond issue, except for issues of $100,000 
or less. With prior approval of the approval official, the applicant may 
elect not to use bond counsel. Such issues will be closed in accordance 
with the following:
    (a) The applicant must recognize and accept the fact that 
application processing may require additional legal and administrative 
time;

[[Page 1065]]

    (b) It must be established that not using bond counsel will produce 
significant savings in total legal costs;
    (c) The local attorney must be able and experienced in handling this 
type of legal work;
    (d) The applicant must understand that it will likely have to obtain 
an opinion from bond counsel at its expense should the Agency require 
refinancing of the debt;
    (e) Bonds will be prepared in accordance with this regulation and 
conform as closely as possible to the preferred methods of preparation 
stated in Sec. 1780.94; and
    (f) Closing instructions must be issued by OGC.