Exclusion of certain investments, loans, and guarantees.

CFR · 2024-01-01 · US · Title 7

(a) In calculating the amount of investments, loans and guarantees permitted under this subpart, there is excluded from the computation any investment, loan or guarantee of the type which by the terms of the borrower's RUS mortgage or RUS loan contract the borrower may make in unlimited amounts without RUS approval. (b) Furthermore, the borrower may make unlimited investments, without prior approval of the Administrator, in: (1) Securities or deposits issued, guaranteed or fully insured as to payment by the United States Government or any agency thereof; (2) Capital term certificates, bank stock, or other similar securities of the supplemental lender which have been purchased as a condition of membership in the supplemental lender, or as a condition of receiving financial assistance from such lender, as well as any other investment made in, or loans made to, the National Rural Utilities Cooperative Finance Corporation, the Saint Paul Bank for Cooperatives, and CoBank, ACB; (3) Patronage capital allocated from an electric power supply cooperative of which the borrower is a member; and (4) Patronage capital allocated from an electric distribution cooperative to a power supply borrower. (c) Without prior approval of the Administrator, the borrower may also: (1) Invest or lend funds derived directly from: (i) Grants which the borrower in not obligated to repay, regardless of the source or purpose of the grant; and (ii) Loans received from or guaranteed by any Federal, State or lo

official document · source cfr-2024 · id 7:§ 1717.655