[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: 7CFR1786.105]

[Page 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. 1786.105  Closing.

    (a) The borrower shall be responsible for obtaining all approvals 
necessary to consummate the transaction as required by the prepayment 
agreement, including such approvals as may be required by regulatory 
bodies and other lenders.
    (b) The RUS Notes shall be prepaid at a closing to be held in 
accordance with the prepayment agreement. RUS shall designate the date 
of closing which in no event shall be later than one year after the 
effective date of the merger or consolidation. At closing, in addition 
to paying all current interest due on the date of prepayment, a borrower 
shall prepay the RUS Notes by paying to the Government an amount equal 
to the lesser of the outstanding balance or the Discounted Present Value 
of the RUS Notes. The closing shall otherwise be conducted as prescribed 
in the prepayment agreement.