[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: 7CFR1789.166]

[Page 1127-1128]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1789--USE OF CONSULTANTS FUNDED BY BORROWERS--Table of Contents
 
             Subpart B--Escrow Account Funding and Payments
 
Sec. 1789.166  Terms and conditions of funding agreement.


    Funding Agreements between the Borrower and a Consultant shall be in 
form and substance satisfactory to RUS and provide for, among other 
matters, the following:
    (a) Specific reference by number to the applicable Consulting 
Contract entered into between the government and the Consultant;
    (b) Specific reference by number to the applicable Task Order (where 
applicable);
    (c) A brief description of the Application;
    (d) A requirement that Invoices make specific reference to:
    (1) The applicable contract and Task Order(s); and

[[Page 1128]]

    (2) The Escrow Account from which payment is to be made;
    (e) A requirement that the Final Invoice for a Task Order be clearly 
identified as such;
    (f) A description of the services to be provided by the Consultant 
to RUS and the applicable time frames for the provision of such 
services;
    (g) Agreement that the Borrower shall pay for the Consultant 
services provided to RUS under the applicable contract through an Escrow 
Account established pursuant to an Escrow Agreement, the Consultant 
shall not provide services to RUS under the applicable contract unless 
there are sufficient funds in the Escrow Account to pay for such 
services, the Consultant shall seek compensation for services provided 
under the applicable contract from, and only from, funds made available 
through the Escrow Account, and the Consultant must submit all Invoices 
to the government for approval.
    (h) A form of Escrow Agreement satisfactory to the Borrower, 
Consultant and the designated Third-party Commercial Institution;
    (i) A schedule setting forth when and in what amounts the Borrower 
shall fund the Escrow Account;
    (j) Acknowledgment by the Consultant of the Indemnification 
Agreement provided by the Borrower to the government; and
    (k) The Funding Agreement shall not be effective unless and until 
approved in writing by RUS.