Eligibility criteria.

CFR · 2024-01-01 · US · Title 7

To be eligible to prepay RUS Notes at the Discounted Present Value, a borrower must comply with the following criteria: (a) The borrower must be current on all payments due on its outstanding RUS Notes and all other payment obligations owed to RUS; (b) The borrower must agree to prepay all of its outstanding RUS Notes; (c) The borrower must identify the source of financing that will be used directly or indirectly to refinance its outstanding RUS Notes. The borrower must certify in writing whether such financing will be tax exempt and, if so, shall furnish all information on the financing as RUS may request to enable RUS to adjust the discount to the equivalent to fully taxable financing; (d) The borrower must have expended all funds advanced on account of the RUS Notes for the purposes for which such funds were advanced or repaid RUS for all unexpended funds; (e) The borrower must agree to a rescission of the unadvanced balance of any RUS Notes outstanding as of the date of its application for prepayment; (f) The borrower must agree that the borrower, its successors and assigns, shall pay to the Government, as a condition of receiving additional loans or loan guarantees pursuant to titles I and III of the Act, an amount equal to the aggregate of the difference with respect to each of the RUS Notes between the amount outstanding on the RUS Note and the Discounted Present Value of the RUS Note upon prepayment with interest accruing quarterly; the interest rates shall be the rat

official document · source cfr-2024 · id 7:§ 1786.99