Investments above the 15 percent level by certain borrowers not exempt under § 1717.656(a).

CFR · 2024-01-01 · US · Title 7

(a) (2) Nothing in this section shall in any way affect the Administrator's authority to exercise approval rights over investments, loans, and guarantees made by a borrower that is not in compliance with all provisions of its mortgage, loan contract and any other agreements with RUS. (b) (c) (i) Satisfactory evidence has been provided that the borrower is in compliance with all provisions of its RUS mortgage, RUS loan contract, and any other agreements with RUS; (ii) The borrower is not in financial workout and has not had its government debt restructured; (iii) The borrower has equity equal to at least 5 percent of its total assets; and (iv) After approval of the investment, loan or guarantee, the aggregate of the borrower's investments, loans and guarantees will not exceed 20 percent of the borrower's total utility plant. (2) Borrower requests for approval to exceed the 15 percent level will be considered on a case by case basis. The requests must be made in writing. (3) In considering borrower requests, the Administrator will take the following factors into consideration: (i) The repayment of all loans secured under the RUS mortgage will continue to be assured, and loan security must continue to be reasonably adequate, even if the entire investment or loan is lost or the borrower is required to perform for the entire amount of the guarantee. These risks will be considered along with all other risks facing the borrower, whether or not related to the investment, loan or guar

official document · source cfr-2024 · id 7:§ 1717.657