[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: 7CFR1781.19]

[Page 1085]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1781--RESOURCE CONSERVATION AND DEVELOPMENT (RCD) LOANS AND WATERSHED (WS) LOANS AND ADVANCES--Table of Contents
 
Sec. 1781.19  Approval, closing, and cancellation.

    (a) Approval and closing actions will be taken in accordance with 
the applicable provisions of part 1780 of this chapter and the following 
requirements have been met:
    (1) The WS or RCD plan has been approved for operations by NRCS and 
the applicant is an official sponsoring or cosponsoring local 
organization for the plan as evidenced by being included in the list of 
sponsoring or co-sponsoring local organizations in the plan.
    (2) Closing instructions or a preliminary legal opinion has been 
prepared by the Regional Attorney.
    (3) The governing body of the applicant's sponsoring local 
organization has formally passed and approved the loan resolution.
    (4) The Rural Development State Director and NRCS State 
Conservationist have determined that all planned actions can be carried 
out as proposed in the project plan and the docket.
    (5) The NRCS State Conservationist and Rural Development State 
Director have mutually agreed on the priority to be given the WS loan or 
WS advance, or RCD loan. In making this determination, consideration 
will be given to the relative priority of the WS works of improvement or 
RCD measures to all other such work in the State and the anticipated 
availability of Federal and local funds to assure continuity of action 
and work until the project is completed. When funds are to be provided 
by NRCS for a WS or RCD loan or a WS advance such funds must be 
obligated by NRCS before closing.
    (6) Public bodies will be required to use bond counsel in accordance 
with subpart D of part 1780 of this chapter.
    (b) When favorable action is not taken on a WS loan, WS advance, or 
RCD loan, the Rural Development State Director will notify the NRCS 
State Conservationist and the applicant in writing and, if possible, 
arrange for a meeting of RUS and NRCS representatives with the applicant 
to explain the action. WS loans, WS advances, or RCD loans may be 
canceled before closing.