§1717.151. Definitions.
7 C.F.R. § 1717.151
The definitions set forth in 7 CFR 1710.2 are applicable to this subpart unless otherwise stated. In addition, for the purpose of this subpart, the following terms shall have the following meanings:
Active borrower means an electric borrower that has, on the effective date, an outstanding insured or guaranteed loan from RUS for rural electrification, and whose eligibility for future RUS financing is not restricted pursuant to 7 CFR part 1786.
Active distribution borrower means an electric distribution borrower that has, on the effective date, an outstanding insured or guaranteed loan from RUS for rural electrification, and whose eligibility for future RUS financing is not restricted pursuant to 7 CFR part 1786.
Consolidation. See Merger.
Coverage ratios means collectively TIER, OTIER, DSC and ODSC, as these terms are defined in 7 CFR 1710.2.
Effective date means the date a merger is effective pursuant to applicable state law.
Former distribution borrower means any organization that
Sells or intends to sell electric power and energy at retail;
At one time had an outstanding loan made or guaranteed by RUS, or its predecessor the Rural Electrification Administration (REA) for rural electrification; and
Either repaid such loans at face value or prepaid pursuant to 7 CFR part 1786. Loan documents means the mortgage (or other security instrument acceptable to RUS), the loan contract, and the promissory note(s) entered into between the borrower and RUS.
Merger means:
A consolidation where two or more companies are extinguished and a new successor is created, acquiring the assets, liabilities, franchises and powers of those passing out of existence;
A merger where one company is absorbed by another, the former ceasing to exist as a separate business entity, and the latter retaining its own identity and acquiring the assets, liabilities, franchises and powers of the former; or
A transfer of mortgaged property by one company to another where the transferee acquires substantially as an entirety the assets, liabilities, franchises, and powers of the transferor.
New loan means a loan to a successor approved by RUS on or after the effective date.
Preexisting loan means a loan to a borrower approved by RUS prior to, and outstanding on the effective date.
Successor means the entity that continues as the surviving business entity as of the effective date, and acquires all the assets, liabilities, franchises, and powers of the entity or entities ceasing to exist as of the effective date.
Transitional assistance means financial relief provided to borrowers by RUS during a limited period of time following a merger.
Notes, amendments, and revision history
Source
Source: 61 FR 66871, Dec. 19, 1996, unless otherwise noted.
Authority
Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.
Source
Source: 55 FR 38646, Sept. 19, 1990, unless otherwise noted.