Temporary excess construction funds.

CFR · 2024-01-01 · US · Title 7

(a) When unanticipated events delay the borrower's disbursement of advanced funds, the funds may be used as follows: (1) With RUS loan funds for loans approved prior to November 1, 1993, or hardship loan funds, the borrower may invest the funds in 5 percent Treasury Certificates of Indebtedness—RUS Series. (2) With RUS cost-of-money or FFB loan funds, the following apply: (i) The borrower may invest the funds in short term securities issued by the United States Treasury. (ii) If permitted by state law, the borrower may deposit the funds in savings accounts, including certificates of deposit, of federally insured savings institutions. (3) Funds advanced by a guaranteed lender other than the FFB may, if so permitted by such lender, be invested under the terms and conditions described above for FFB advances. (4) Any security or investment made under this authorization shall identify the borrower by its corporate name followed by the words “Trustee, Rural Utilities Service.” (5) All temporary investments and all income derived from them shall be considered part of the construction fund and be subject to the same controls as cash in that account. (6) Securities and other investments shall have maturity dates or liquidating provisions that ensure the availability of funds as required for the completion of projects and the payment of obligations. (7) Any instrument evidencing a security or other investment herein authorized to be purchased or made, may not be sold, discounted, or pl

official document · source cfr-2024 · id 7:§ 1744.67