[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: 7CFR1785.67]

[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. 1785.67  Definitions.

    Accumulated (deferred) interest means interest allowed to accumulate 
up to, and including, the basis date of RUS notes covering loans 
approved before June 5, 1957. The accumulated interest is payable in 
equal periodic installments over the remaining life of the notes.
    Act means the Rural Electrification Act of 1936, as amended (7 
U.S.C. 901 et. seq.).
    Advance payment means a voluntary unscheduled payment on an RUS 
note, made prior to October 2, 1987, credited to the advance payment 
account of a borrower.
    Cushion of Credit Payment means a voluntary unscheduled payment on 
an RUS note made after October 1, 1987, credited to the cushion of 
credit account of a borrower.
    Current interest means interest payable periodically as it accrues.
    Fund means the Rural Electrification and Telephone Revolving Fund 
established pursuant to the Act.
    Interest credit means interest earned on balances in advance payment 
or cushion of credit accounts. Since the periodic installments are 
established by the terms of the notes, the interest credits cannot serve 
to change the total amount of each installment; therefore, an amount 
equal to the interest credits is added to the principal installment due. 
On receipt of the full installments, amounts equal to the interest 
credits (the principal offsets) are added to the respective advance 
payment accounts.
    Prepayment means a voluntary unscheduled payment which the borrower 
instructs RUS to apply directly and immediately to the principal of an 
RUS note.
    RUS notes means those notes, bonds, or other obligations evidencing 
indebtedness created by loans made by RUS pursuant to titles I, II, or 
III of the Act.
    Subaccount means the Rural Economic Development Subaccount 
established pursuant to the Act as part of the Fund.