[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: 7CFR1786.155]

[Page 1110-1111]
 
                          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 F--Discounted Prepayments on RUS Electric Loans
 
Sec. 1786.155  Eligible borrower.

    (a) To be eligible to prepay an electric loan under this subpart, 
the borrower must be in compliance with the following:
    (1) The borrower shall be current on all payment obligations on 
outstanding

[[Page 1111]]

loans made or guaranteed by RUS. For the purpose of determining 
eligibility for prepayment, a default by a power supply borrower from 
which a distribution borrower purchases wholesale power shall not be 
considered a default by the distribution borrower;
    (2) There shall exist no material defaults under the borrower's RUS 
Loan Contract and Mortgage;
    (3) The borrower shall have expended all funds advanced pursuant to 
the RUS Loan Contract for the purposes for which such funds were 
advanced. A borrower will not be eligible to prepay under this subpart 
if it has any funds advanced pursuant to the RUS Loan Contract in its 
Construction Fund Account; and
    (4) The borrower shall be current on all obligations under any 
wholesale power contract with an RUS financed power supply borrower.
    (b) The eligibility of borrowers that have had any indebtedness 
representing loans made or guaranteed by RUS restructured shall be 
determined on a case by case basis considering the terms and conditions 
of the restructuring agreement.