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 Code of Federal Regulations (Last Updated: November 8, 2024)
 Title 7 - Agriculture
 Subtitle B - Regulations of the Department of Agriculture
 Chapter XVII - Rural Utilities Service, Department of Agriculture
 Part 1744 - Post-Loan Policies and Procedures Common to Guaranteed and Insured Telephone Loans
 Subpart E - Borrower Investments

  § 1744.201 - Definitions.  

Latest version.

  • § 1744.201 Definitions.

    Cross Reference
    Link to an amendment published at 84 FR 59923, Nov. 7, 2019.

    As used in this subpart:

    Administrator means the Administrator of the Rural Utilities Service (RUS) and, as provided in § 1744. 200(b), the Governor of the Rural Telephone Bank (RTB).

    Advance means any funds provided of which repayment is expected.

    Affiliated company means any organization that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the borrower.

    Borrower means any organization which has an outstanding loan made by RUS or RTB, or guaranteed by RUS, or which is seeking such financing.

    Extension of credit means to make loans or advances.

    Guarantee means to undertake collaterally to answer for the payment of another's debt or the performance of another's duty, liability, or obligation, including, without limitation, the obligations of affiliated companies. Some examples of such guarantees would include:

    (1) Guarantees of payment or collection on a note or other debt instrument;

    (2) Issuing performance bonds or completion bonds; or

    (3) Cosigning leases or other obligations of third parties.

    Maximum investment ratio means that the aggregate of all qualified investments by the borrower including the proposed qualified investment shall not be more than one-third of the net worth of the borrower.

    Minimum total assets ratio means the borrower's net worth is at least twenty percent of its total assets including the proposed qualified investment.

    Net plant means the sum of the balances of the following accounts of the borrower:

    Account Names Number
    (1) Telecommunications plant in service2001
    (2) Property held for future telecommunications use2002
    (3) Telecommunications plant under construction-short term2003
    (4) Telecommunications plant under construction-long term2004
    (5) Telecommunications plant adjustment2005
    (6) Nonoperating plant2006
    (7) Goodwill2007
    (8) Less accumulated depreciation3100 through 3300s
    (9) Less accumulated amortization3400 through 3600s

    Note: All references to account numbers are to the Uniform System of Accounts (47 CFR part 32).

    Net worth means the sum of the balances of the following accounts of the borrower:

    Account Names Number
    (1) Capital stock4510
    (2) Additional paid-in capital4520
    (3) Treasury stock4530
    (4) Other capital4540
    (5) Retained earnings4550

    Note: For nonprofit organizations, owners' equity is shown in subaccounts of 4540 and 4550. All references regarding account numbers are to the Uniform System of Accounts (47 CFR part 32).

    Qualified investment is defined in § 1744.202(b).

    RE Act means the Rural Electrification Act of 1936, as amended (7 U.S.C. 901 et seq.).

    REA means the Rural Electrification Administration formerly an agency of the United States Department of Agriculture and predecessor agency to RUS with respect to administering certain electric and telephone loan programs.

    RTB means the

    Rural

    Telephone Bank, an agency and instrumentality of the United States within the United States Department of Agriculture.

    Rural development investment is defined in § 1744.202(d).

    RUS means the Rural Utilities Service, an agency of the United States Department of Agriculture established pursuant to Section 232 of the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 (Pub. L. 103-354, 108 Stat. 3178), successor to REA with respect to administering certain electric and telephone programs. See 7 CFR 1700.1.

    RUS mortgage means the instrument creating a lien on or security interest in the borrower's assets in connection with a loan made or guaranteed under the RE Act.

    Total assets means the sum of the balances of the following accounts of the borrower:

    Account Names Number
    (1) Current assets1100s through 1300s
    (2) Noncurrent assets1400s through 1500s
    (3) Total telecommunications plant2001 through 2007
    (4) Less accumulated depreciation3100 through 3300s
    (5) Less accumulated amortization3400 through 3600s

    Note: All references regarding account numbers are to the Uniform System of Accounts (47 CFR part 32).

    Uniform System of Accounts means the Federal Communications Commission Uniform System of Accounts for Telecommunications Companies (47 CFR part 32) as supplemented by 7 CFR Part 1770, Accounting Requirements for RUS Telephone Borrowers.

    [58 FR 52642, Oct. 12, 1993, as amended at 59 FR 66440, Dec. 27, 1994; 84 FR 59923, Nov. 7, 2019]