[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: 7CFR1786.59]

[Page 1101-1102]
 
                          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 C--Special Discounted Prepayments on RUS Direct/Insured Loans
 
Sec. 1786.59  Loan fund audit.

    Within 6 months of closing RUS shall have the right to audit 
transactions involving the RUS construction fund established and 
maintained by the borrower pursuant to the terms of the RUS Loan 
Agreement and to inspect all books, records, accounts and other 
documents and papers of the borrower. Should RUS determine that the 
borrower has made disbursements of funds advanced pursuant to RUS Notes 
which do not comply with the requirements

[[Page 1102]]

of the RUS Loan Agreement, the borrower shall be required to pay to the 
Government an amount equal to the difference between the amount which 
the borrower prepaid on such RUS Notes evidencing RUS loan funds which 
were improperly disbursed and the amount which the borrower would 
otherwise have been required to return to the Government as a result of 
noncompliance if the borrower had not prepaid such RUS Notes. (See 7 CFR 
part 1721)