[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: 7CFR1786.102]

[Page 1104-1105]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1786--PREPAYMENT OF RUS GUARANTEED AND INSURED LOANS TO ELECTRIC AND TELEPHONE BORROWERS--Table of Contents
 
Subpart E--Discounted Prepayments on RUS Notes in the Event of a Merger 
                    of Certain RUS Electric Borrowers
 
Sec. 1786.102  Prepayment agreement.

    Upon approving an application for prepayment under this subpart, the 
Administrator shall notify the borrower and deliver to the borrower for 
its execution a prepayment agreement which shall set forth and provide:
    (a) The RUS Notes to be prepaid and when the Discounted Present 
Value will be calculated.
    (b) The place, date and conditions for closing.
    (c) Agreement that the unadvanced balance of RUS Notes shall be 
rescinded.
    (d) Agreement that the borrower, or its successors or assigns, shall 
pay to

[[Page 1105]]

the Government, as a condition of receiving additional loans or loan 
guarantees pursuant to titles I and III of the Act, an amount equal to 
the aggregate of the difference with respect to each of the RUS Notes 
between the amount outstanding on the RUS Note and the Discounted 
Present Value of the prepaid RUS Note; with interest accruing quarterly. 
The interest rates shall be the rates provided in the respective RUS 
Notes.
    (e) Assurances that the borrower will meet its obligations to any 
power supplier financed pursuant to the Act.
    (f) Such other terms and conditions as the Administrator deems 
appropriate.