[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1703.58]

[Page 54]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1703--RURAL DEVELOPMENT--Table of Contents
 
      Subpart B--Rural Economic Development Loan and Grant Program
 
Sec. 1703.58  Post selection period.

    (a) RUS will inform a borrower whether the Administrator has 
selected its application. The advance of RUS funds after the selection 
has occurred is contingent upon the borrower meeting any terms and 
conditions the Administrator determines are necessary. A borrower that 
submitted an application which was not selected will be asked to inform 
RUS whether it desires to be reconsidered at a later date. The borrower 
may modify the application after it has been considered without 
resubmitting all the required material in an application, except if it 
changes the request from a grant to a zero-interest loan it must submit 
information necessary for the Administrator to evaluate a loan proposal 
as set forth in Secs. 1703.35 and 1703.36 and submit a new board 
resolution requesting a loan. If the borrower so desires, the 
Administrator will consider an application for up to one year after the 
date RUS originally received the application. A borrower may submit new 
applications as often as it desires.
    (b) During the period between the selection of the application and 
the execution of RUS's legal documents, the borrower must inform the 
Administrator if the project is no longer viable or the borrower no 
longer desires a zero-interest loan or grant for the project. Upon a 
determination by the Administrator to that effect, the selected 
application will be considered cancelled.
    (c) If an application has been selected and the nature of the 
project changes, as determined by the Administrator, the borrower may be 
required to submit a new application to RUS for consideration. The 
selection may not be transferred to another project, as determined by 
the Administrator. At any time after the selection of an application, 
the Administrator may, upon a request from the borrower and receipt of 
any documentation the Administrator considers necessary, approve changes 
in the method of carrying out the purpose of the project as long as the 
overall purpose of the project remains the same, revise the amount of 
the zero-interest loan and/or grant, revise the loan maturity date and 
principal deferment period and make other adjustments. The Administrator 
may reduce the amount of the RUS loan or grant to reflect reductions in 
the amount of supplemental funds to be provided to the project. For 
substantial reductions in amount of supplemental funds to be provided to 
the project, the Administrator may require the borrower to re-apply for 
the RUS loan or grant funds.
    (d) If state or local governments raise objections to a proposed 
project under the intergovernmental review process that are not resolved 
within three months of the Administrator's selection of the application, 
the Administrator may consider the selection of the application 
cancelled.