[Code of Federal Regulations]
[Title 7, Volume 15]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR4279.137]

[Page 578]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES 
                   SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 4279_GUARANTEED LOANMAKING--Table of Contents
 
                  Subpart B_Business and Industry Loans
 
Sec. 4279.137  Financial statements.

    (a) The lender will determine the type and frequency of submission 
of financial statements by the borrower. At a minimum, annual financial 
statements prepared by an accountant in accordance with Generally 
Accepted Accounting Principles will be required.
    (b) If specific circumstances warrant and the proposed guaranteed 
loan will exceed $3 million, the Agency may require annual audited 
financial statements. For example, the need for audited financial 
statements will be carefully considered in connection with loans that 
depend heavily on inventory and accounts receivable for collateral.