Loan Design (LD).

CFR · 2024-01-01 · US · Title 7

(a) A loan application requires supporting data collectively called a “Loan Design.” The LD contains a forecast of service requirements and a narrative with supporting exhibits. Most of the items included in the LD are similar for all loan applications. However, as noted below, there are certain additional requirements for initial loans and for any exchange areas not previously financed by RUS, and other additional requirements for subsequent loans for areas previously financed by RUS. The LD must conform to the borrower's state telecommunications modernization plan unless the borrower is seeking a guaranteed loan (for additional information concerning the plan, see 7 CFR part 1751, subpart B). (b) Because of the importance and complexity of the engineering studies necessary for the LD, it should be prepared by a competent experienced telecommunications engineer. While the LD is subject to RUS approval, the borrower's selection of an engineer to perform preloan work is not. Note: The borrower's selection of an engineer to perform postloan work (c) An LD for initial loans or for any exchange areas not previously financed by RUS requires an Outside Plant Design that provides: (1) The most economical and practical design for a telephone system that meets immediate service demands; and (2) The basis for orderly expansion of the system to serve the widest practical number of rural establishments. (d) The LD for a subsequent loan (which only includes areas previously financed by RU

official document · source cfr-2024 · id 7:§ 1737.32