TITLE 7 - AGRICULTURE

SUBTITLE B - REGULATIONS OF THE DEPARTMENT OF AGRICULTURE

CHAPTER XVII - RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE

PART 1735 - GENERAL POLICIES, TYPES OF LOANS, LOAN REQUIREMENTS - TELECOMMUNICATIONS PROGRAM

subpart f - MORTGAGE CONTROLS ON ACQUISITIONS AND MERGERS

1735.61 - Approval criteria.

  (a) If a borrower is required by the terms of its mortgage or loan contract to obtain RUS approval of a merger or acquisition, the borrower shall request RUS approval and shall provide RUS with such data as RUS may request.

  (b) If loan funds are requested, the borrower shall comply with subpart G of this part. If no additional loan funds are involved, the borrower shall comply with subpart H of this part.

  (c) In considering whether to approve the request, RUS will take into account, among other matters: (1) Whether the operation, management, and the economic and loan-repayment feasibility characteristics of the proposed system are satisfactory; (2) Whether the merger or acquisition may result in any relinquishment, impairment, or waiver of a right or power of the Government; (3) Whether the proposed merger or acquisition is in the best interests of the Government as note holder; and (4) Whether the proposed purchase price and terms of an acquisition are reasonable, regardless of the source of funds used to pay for the purchase. RUS will consider the purchase price unreasonable if, in RUS's opinion, it will endanger financial feasibility.