Water and waste disposal systems which have become part of an urban area.

CFR · 2024-01-01 · US · Title 7

A water and/or waste disposal system serving an area which was formerly a rural area as defined in § 1942.17(b)(2)(iii) and (iv) of subpart A of part 1942 of this chapter, but which has become in its entirety part of an urban area, will be serviced in accordance with this section. (a) (b) (2) The urban community or another entity may accept a transfer of the Rural Development debt on an ineligible applicant basis. (3) When a grant is involved, the entity will agree in writing to assume all rights and obligations of the original grantee. See § 1951.215 for additional guidance on grant agreements. (c) (1) The urban community will: (i) Assume responsibility for operation and maintenance of the facility, subject to nondiscrimination and all other requirements which are applicable to the borrower, which are to be specified in the agreement between the parties; and (ii) Pay the association annually an amount sufficient to enable it to meet all its obligations, including reserve account requirements. (2) The Rural Development borrower will: (i) Meet its debt service and reserve account requirements to Rural Development; (ii) Retain its corporate existence until Rural Development has been paid in full; and (iii) If agreed upon by both parties, convey title to the facility to the urban community when the Rural Development debt has been paid in full. (d) (2) Transfer and assumption of a borrower's assets and indebtedness will be handled in accordance with § 1951.230 of this subpart. (3

official document · source cfr-2024 · id 7:§ 1951.232