conversion of data from source documents and the preparation of statements, reports, analyses, and other information, and provides training and assistance to users; and

(3) Collects and analyzes financial, operating, and other statistical data obtained from borrowers and other sources, and prepares reports on the progress and status of the programs of RUS and the RTB.

(e) The Financial Operations Division administers the fiscal accounting program of the agency and the RTB. The division:

(1) Develops, recommends and implements accounting policies, systems, and procedures regarding the Agency's and RTB's operations;

(2) Maintains accounts to provide control over and accountability for all funds, assets, liabilities, income and expenses of the Agency and the RTB; and prepares reports required by RUS, RTB, the U.S. Department of Agriculture, and other government agencies;

(3) Examines and certifies for payment, vouchers and invoices covering administrative expenses and loan fund advances of the Agency and the RTB;

(4) Reviews, examines and processes monthly billings and debt service payments for RUS and RTB loans;

(5) Reviews, examines and processes loan fund advances, billings, debt service payments and all other accounting related activities connected with Federal Financial Bank loans to RUS borrowers; and

(6) Maintains custody of the original copies of notes and mortgages and certain loan collateral.

§ 1700.9 Information, legislation, policy and management analysis.

The Deputy Administrator-Management and Policy Support, directs two separate staffs of the Agency dealing with public information and legislation, and policy and management analysis.

(a) The Legislative and Public Affairs Staff performs the following functions:

(1) Analyzes the policy, programs and procedural implications of Federal and State legislation affecting RUS programs; prepares special reports for the Administrator on legislative affairs;

and responds to inquiries from Congress and others concerning RUS programs;

(2) Maintains liaison with the Department's legislative staff and with congressional offices;

(3) Manages the information activities of the Agency to provide borrowers and the public with timely information concerning the operations, status, progress and accomplishments of the rural electrification, rural telephone and rural development programs;

(4) Evaluates the public information activities of the Agency and advises on actions that will improve public understanding and acceptance of Agency functions; and

(5) Administers the public information provisions of 5 U.S.C. 551 et seq., the Administrative Procedure Act.

(b) The Policy and Management Analysis Staff performs the following functions:

(1) Coordinates the development and monitors the implementation of the Agency's long-term program and management plans, ensuring that these plans are up to date at all times;

(2) Ensures that these long-term plans include quality-improvement, efficiency, and cost saving initiatives;

(3) Ensures that audit resolutions are incorporated in the Agency's strategic planning and other processes for establishing goals and objectives; and

(4) Initiates and coordinates management productivity programs of the Agency.

§§ 1700.10-1700.19 [Reserved]

Subpart B-Programs

§ 1700.20 Insured electric loans pursuant to section 305 of the Rural Electrification Act, as amended.

(a) General. These loans are made from the Rural Electrification and Telephone Revolving Fund for purposes authorized by section 4 of the RE Act. The standard interest rate on these loans is 5 percent, but a rate as low as 2 percent is authorized by section 305(b) of the RE Act if a borrower:

(1) Has experienced extreme financial hardship; or

(2) Cannot, in accordance with generally accepted management and accounting principles and without charging rates to its customers or subscribers so high as to create a substantial disparity between such rates and the rates charged for similar service in the same or nearby areas by other suppliers, provide service consistent with the objectives of the RE Act.

(b) These loans are made to finance the construction and operation of electric facilities and systems to provide initial and continued adequate electric service to persons in rural areas not receiving central station service at the time of the initial RUS loan. The loans, approval of which rests solely within the discretion of the Administrator, must be self-liquidating within a period not to exceed 35 years, and must be reasonably secured in the judgment of the Administrator. Under the RE Act, they may be made to persons, corporations, public bodies, and cooperative, non-profit, or limited dividend associations. Preference is given to public bodies and cooperative, nonprofit, or limited dividend associations.

(c) Loan applications. Applications for these loans are made on forms prescribed by RUS and supported by a resolution of the applicant's board of directors. Copies of these standard forms are made available by RUS on request. Loan applicants are assisted, as necessary, in preparing the loan application and supporting data. If an application is acceptable after legal, engineering, economic, and financial studies, funds are obligated by a loan contract and the borrower gives a note, mortgage and, in some cases, other security.

(d) Construction. Under the loan agreements, RUS reserves the right to approve the design and construction of the facilities, and to require progress reports on construction and audits of the borrower's records relating to construction.

(e) Advance of loan funds. Loan funds are advanced on the basis of requisitions submitted by borrowers in accordance with the loan contract and RUS regulations.

§ 1700.21 Insured telephone loans pursuant to section 305 of the Rural Electrification Act, as amended.

(a) General. (1) These loans are made from the Rural Electrification and Telephone Revolving Fund for purposes authorized by section 201 of the RE Act. The standard interest rate on these loans is 5 percent, but a rate as low as 2 percent is authorized by section 305(b) of the RE Act under the same conditions as specified in §1700.20(a) of this part.

(2) These loans are made for the purpose of improvement, expansion, construction, acquisition and operation of telephone lines, facilities, or systems to furnish or improve telephone service in rural areas. Borrowers may be required to provide a portion of the investment themselves. The loans, approval of which rests solely within the discretion of the Administrator, must be repaid within a period, not to exceed 35 years, that approximates the expected useful life of the facilities financed and must be reasonably secured in the judgment of the Administrator. The loans may be made to any type of commercial or nonprofit corporation now providing or who may hereafter provide telephone service in rural areas. Preference is given to persons already providing telephone service in rural areas and to cooperative, nonprofit, limited dividend or mutual associations.

(b) Loan applications. Applications for these loans are made on forms prescribed by RUS, copies of which are available from RUS on request. Loan applicants are assisted, as necessary, in conducting area coverage surveys and in preparing loan applications. If an application is acceptable after legal, engineering, economic and financial studies, funds are obligated by a loan contract and the borrower gives a note, mortgage and, in some cases, other security.

(c) Construction. Under the loan agreements, RUS reserves the right to approve the design and construction of facilities and to require progress reports on construction and audits of the borrower's records relating to construction.

(d) Advance of loan funds. Loan funds are advanced on the basis of requisitions submitted by borrowers in accordance with the loan contract and 7 CFR part 1744.

[55 FR 39596, Sept. 28, 1990; 55 FR 42807, Oct. 23, 1990]

§ 1700.22 Rural Telephone Bank loans pursuant to section 408 of the Rural Electrification Act, as amended.

These loans are made for the purposes authorized by section 201 of the Act. The loans, approval of which rests solely within the discretion of the Governor, bear interest at a rate equal to the cost of funds to the Bank; must be repaid within a period, up to a maximum of 35 years, that approximates the expected useful life of the facilities financed; and must be reasonably secured in the judgement of the Administrator. These loans are administered by RUS staff as part of the rural telephone program pursuant to the policies and procedures set forth in 7 CFR part 1610.

§ 1700.23 Guaranteed loans pursuant to section 306 of the Rural Electrification Act, as amended.

These loans are made by any legally organized lending agency and guaranteed in the full amount thereof by the Administrator for purposes provided in the RE Act, including without limitation, distribution, sub-transmission, bulk transmission and generation facilities. The loans guaranteed under this section are serviced by the lender except that loans made by the Federal Financing Bank are serviced by RUS. The interest rate on these loans is as agreed upon by the borrower and the lender.

[56 FR 2671, Jan. 24, 1991]

§ 1700.24 Loans and grants pursuant to section 313 of the RE Act.

These zero-interest loans and grants are made to borrowers under the RE Act for the purpose of promoting rural economic development and rural job creation projects. Selection and approval of applications for zero-interest loans and grants rests solely within the

discretion of the Administrator. (See 7 CFR part 1703.)

[57 FR 6290, Feb. 24, 1992]

§ 1700.25 Other loan authorities.

(a) The Administrator has authority under section 314 of the RE Act to guarantee 90 percent of the principal and interest of loans made by qualified private lenders to finance electric and telephone facilities in rural areas. (See 7 CFR parts 1712 and 1739.) The Administrator also has authority under section 502 of the RE Act to make grants and reduced interest loans to promote business incubator programs or for the creation or operation of business incubators in rural areas. Authority is also granted to the Administrator by the Rural Economic Development Act of 1990 (7 U.S.C. 950aaa et seq.) to provide financial assistance for distance learning and medical link programs.

(b) The Administrator has authority under section 5 of the RE Act to make loans to electric borrowers for the purpose of financing the wiring of the premises of persons in rural areas and for the purchase and installation of electrical and plumbing appliances and equipment, including machinery. The Administrator also has authority under the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) to finance community antenna television (CATV) services and facilities. Funds have not been appropriated for these purposes since 1969 in the case of section 5 loans and not since 1981 in the case of CATV loans.

[57 FR 6290, Feb. 24, 1992]

§ 1700.26 Studies, investigations, and reports.

Pursuant to section 2 of the RE Act, the Agency may make, or cause to be made, studies, investigations, and reports concerning the condition and progress of electrification and telephony in rural areas in the several States and territories and may publish and disseminate information with respect thereto.

§ 1700.27 Loan security activities.

In carrying out its program, and in the interest of loan security, the Agency requires periodic reports of borrowers on operations, annual audits, etc., and provides specialized and technical accounting, engineering, and other managerial assistance to borrowers with respect to the construction and operation of their facilities, to help them establish efficient and economical service in rural areas.

§ 1700.28 Issuances implementing procedure.

There are available from RUS, upon request:

(a) Basic forms of loan agreements; and

(b) Rules and bulletins issued from time to time which implement the loan agreements and the Agency's policies and procedures.

§ 1700.29 [Reserved]

Subpart C-Public Information

§ 1700.30 Availability of Agency publications and other information, and collection of public comments to proposed rules.

(a) 5 U.S.C. 552(a)(2) requires that certain materials be made available for public inspection and copying.

(b) The Rural Utilities Service (RUS) issues from time to time notices and regulations in the FEDERAL REGISTER as well as bulletins, informational publications, and staff instructions in order to:

(1) Implement the provisions of the RE Act and the loan and security instruments;

(2) Establish Agency procedures; and (3) Assist electric and telephone borrowers in the design, operation, and maintenance of their systems.

(c) Information about availability and costs of Agency publications and other Agency materials is available from Publications and Directives Management Branch, Administrative Services Division, Rural Utilities Service, Room 0180, South Building, U.S. Department of Agriculture, Washington, DC 20250-1500.

(d) RUS will provide for the distribution of indexes of publications in con

formance with the Freedom of Information Act, 5 U.S.C. 552(a)(2). Single copies of individual bulletins, informational publications, staff instructions, and forms, including forms of basic loan and security instruments, are available to borrowers and other members of the public either directly from RUS, from the Superintendent of Documents, U.S. Government Printing Office, Washington DC 20402, or from another source to be established by RUS. Costs for these publications are established in conformance with 7 CFR part 1. Initial copies of Bulletins directed to RUS borrowers are provided at no cost to those borrowers.

(e) RUS requires that all persons submitting comments to a proposed rule published by the Agency submit a signed original and three copies of their comments to the address shown in the preamble to the proposed rule. Copies of comments submitted are available to the public in conformance with 7 CFR part 1.

[56 FR 25349, June 4, 1991]

5 U.S.C. 552(a)(2) requires that each agency publish or otherwise make available a current index of all materials required to be made available for public inspection and copying. RUS will maintain and publish current indexes and quarterly supplements thereto, providing identifying information for all RUS Bulletins and for staff manuals and instructions made available pursuant to §1700.30. Requests for copies should be addressed, in person or by mail, to the Office of the Director, Administrative Services Division, Room 0168-South Building, U.S. Department of Agriculture, Washington, DC 20250-1500.

§ 1700.32 Requests for records.

Requests for records under 5 U.S.C. 552(a)(3) shall be made in accordance with 7 CFR 1.6(a) and addressed to Office of the Director, Legislative and Public Affairs Staff, Rural Utilities Service, room 4043, South Building, U.S. Department of Agriculture, Washington, DC 20250-1500. A request shall describe the records sought as set forth in 7 CFR 1.6(b). A charge may be made

to cover the costs of fulfilling the request. Requests may be submitted in person or by mail.

[55 FR 53487, Dec. 31, 1990]

§ 1700.33 Appeals.

Any person whose request under § 1700.32 is denied shall have the right to appeal such denial. This appeal shall be submitted in accordance with 7 CFR 1.3(e) and addressed to the Administrator, Rural Utilities Service, Room 4051, South Building, U.S. Department of Agriculture, Washington, DC 202501500.

Subpart D-Delegations of Authority; General

SOURCE: 59 FR 21624, Apr. 26, 1994, unless otherwise noted.

§ 1700.40 Exercise of delegated authority.

(a) Unless specifically reserved, or otherwise delegated, the delegations of authority contained in subparts D through L of this part include the authority to take any action or execute any document deemed necessary and proper to the discharge of such responsibilities. In the exercise of authority delegated in subparts D through L of this part, all applicable RUS policies, regulations, and procedures should be followed. All delegations previously made are superseded.

(b) No delegation of authority by the Administrator or other person shall preclude the Administrator or other person from exercising any of the authority so delegated.

§ 1700.41 Persons serving in acting capacities.

Incumbents delegated authority in subparts D through L of this part are authorized to designate a person to act for them as necessary, except that a Regional Director or the Director, Power Supply Division may not redelegate authority to approve loans, loan guarantees or lien accommodations, and related actions as set forth in §§ 1700.124(a), 1700.127(a) and 1700.145(a). If an incumbent of a position to whom delegations are made in subparts D through L of this part is absent or is

unable to carry out such delegations, the person designated authority to act for the incumbent shall exercise the authority conferred by such delegations. Such designations shall be in accordance with any instruction issued by the incumbent's supervisor.

[59 FR 21624, Apr. 26, 1994, as amended at 59 FR 46723, Sept. 12, 1994]

§ 1700.42 Persons serving as acting Ad

ministrator.

The following persons are authorized, in descending order, to act for the Administrator only in his or her absence, sickness, resignation, or death: Deputy Administrator, Assistant Administrator-Electric, Assistant Administrator-Telephone, Assistant Administrator-Economic Development and Technical Services. That is, if the first person on the list is also absent, sick, has resigned, or is dead, the second person on the list is authorized to act for the Administrator and so on down the list. Persons on this list may not redelegate the authority to act for the Administrator. The Administrator may in his/her discretion in writing, on a case-by-case basis, delegate authority to act as Administrator in his/her absence outside of this specified order.

§ 1700.43 Persons serving as acting Assistant Administrator.

(a) Electric and telephone programs. The Deputy Assistant Administrator in each program is authorized to act for the respective Assistant Administrator in the absence, sickness, resignation or death of that Assistant Administrator. The Deputy Assistant Administrators may not redelegate this authority.

(b) Assistant Administrator-Economic Development and Technical Services. (1) The Directors of the Rural Development Assistance Staff, Borrower Accounting Division and the Program Support Staff are authorized to act for the Assistant Administrator-Economic Development and Technical Services in his or her absence according to the following schedule: