[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: 7CFR1785.66]

[Page 1087]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1785--LOAN ACCOUNT COMPUTATIONS, PROCEDURES AND POLICIES FOR ELECTRIC AND TELEPHONE BORROWERS--Table of Contents
 
  Subpart B--RUS Cushion of Credit Account Computations and Procedures
 
Sec. 1785.66  General.

    Source: 54 FR 13669, Apr. 5, 1989, unless otherwise noted.


    This subpart B sets forth policies and procedures on the RUS cushion 
of creditpayments program. The cushion of credit payments program will 
be maintained only for insured loans evidenced by obligations of the 
Fund. A subaccount within the Fund is hereby established for purposes of 
promoting rural economic development. It shall be known as the ``Rural 
Economic Development Subaccount.'' The assets of the subaccount shall be 
obtained from crediting (on a monthly basis) a sum determined by 
multiplying the outstanding cushion of credit payments made after 
October 1, 1987, by the difference (converted on a monthly basis) 
between the average weighted interest rate paid on outstanding 
certificates of beneficial ownership issued by the Fund and the 5 
percent rate of interest provided to borrowers on cushion of credit 
payments, repayment of loans made pursuant to Section 313 of the Act, 
and other sources as provided by law. This subaccount shall be used to 
provide grants or zero interest loans to borrowers under the Act for the 
purpose of promoting rural economic development.