[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: 7CFR1786.29]

[Page 1094-1095]
 
                          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 B--Prepayment of RUS Guaranteed Federal Financing Bank Loans 
                Pursuant to Section 306(A) of the RE Act
 
Sec. 1786.29  Prepayment authority, program allocations, categories of prepayment applications and financially distressed borrowers' reserve.

    (a) Prepayment Authority. So long as the aggregate amount of 
prepayments made after December 22, 1987, including prepayments made 
pursuant to Sec. 1786.28(d) and Sec. 1786.28(e), under section 306(A) of 
the RE Act, does not exceed $2.5 billion, the approval of the Secretary 
of the Treasury is not required in order to make a prepayment pursuant 
to this subpart (such amount of prepayments is hereinafter called 
prepayment authority).
    (b) Program Allocations. In accordance with the provisions of 
section 637 of the 1989 Appropriations Act, $350 million of prepayment 
authority is allocated to RUS-financed electric systems and $150 million 
of prepayment authority is allocated to RUS-financed telephone 
utilities. The amounts of prepayment authority allocated to electric 
program borrowers and telephone program borrowers shall not be 
transferred between programs. Borrowers may not sell, assign, or 
otherwise transfer prepayment authority to another borrower.
    (c) Categories of Prepayment Applications. Applications received by 
RUS from borrowers desiring to prepay pursuant to this subpart will be 
separated into the following two application categories:
    (1) Electric Program Applications. Electric program applications are 
applications to make a prepayment pursuant to this subpart from RUS-
financed electric utilities, that qualify in accordance with 
Sec. 1786.28(a) hereof and which are received by RUS during the 
application period. Electric program applications will be further 
subdivided and classified as being either (i) a financially distressed 
borrower's application, or (ii) a standard electric program application. 
Applications received from borrowers determined by

[[Page 1095]]

the Administrator not to be a financially distressed borrower will be 
classified and processed as a standard electric program application;
    (2) Telephone Program Applications. Telephone program applications 
are applications to make a prepayment pursuant to this subpart from RUS-
financed telephone utilities that qualify in accordance with 
Sec. 1786.28(a) hereof and which are received by RUS during the 
application period;
    (d) Financially distressed borrowers' reserve.The $350 million of 
prepayment authority allocated for RUS-financed electric utilities, is 
initially set aside into a financially distressed borrowers' reserve. 
This reserve of prepayment authority will be available for prepayments 
pursuant to this subpart by financially distressed borrowers who apply 
to make such a prepayment during the application period. In the event 
that a portion of financially distressed borrowers' reserve remains 
unsubscribed at the end of the initial application period, the 
unallocated portion of the financially distressed borrowers' reserve 
will be allocated to other electric borrowers having submitted 
applications during an application period to be announced by RUS. Such 
prepayment applications shall be classified as standard electric program 
applications.

[55 FR 1145, Jan. 11, 1990, as amended at 55 FR 35427, Aug. 30, 1990. 
Redesignated at 55 FR 49250, Nov. 27, 1990]