Interim financing.

CFR · 2024-01-01 · US · Title 7

(a) A borrower may submit a written request for RUS approval of interim financing if it is necessary to close an acquisition before the loan to finance the acquisition is approved. Loan funds (b) RUS will approve interim financing of acquisitions only in cases where loan funds cannot be made available in time for the closing. (c) RUS will not approve interim financing unless the following information is acceptable: (1) A written request for approval of interim financing, including a brief description of the acquisition, an explanation of the urgency of proceeding with the acquisition, and the source of funds to be used. (2) A completed RUS Form 490, “Application for Telephone Loan or Loan Guarantee.” See 7 CFR part 1737. (3) The portions of the Loan Design that cover the proposed acquisition, including cost estimates and information on any investments in nonrural areas. See 7 CFR 1737. (4) The information required in § 1735.74 (a)(1) through (a)(8), (a)(14) and (b)(1). (5) Any other data deemed necessary by the Administrator to approve the interim financing of the acquisition. (d) Furthermore, RUS will not approve interim financing if, in RUS's judgment, the proposed acquisition will not qualify for RUS financing or the proposed interim financing presents unacceptable loan security risks to RUS. (e) Because RUS approval of interim financing is not a commitment to make a loan, RUS will not approve interim financing unless the borrower is prepared to assume responsibility for f

official document · source cfr-2024 · id 7:§ 1735.75