---
kind: "section"
citation: "7 C.F.R. § 1735.47"
title: "7"
number: "1735.47"
heading: "Rescissions of loans."
url: "https://uscodex.org/cfr/7/1735.47"
---

# §1735.47. Rescissions of loans.

- (a) Rescission of a loan may be requested by a borrower at any time. To rescind a loan, the borrower must demonstrate to RUS that:
  - (1) The purposes of the loan being rescinded have been completed;
  - (2) Sufficient funds are available from sources other than RUS or FFB to complete the purposes of the loan being rescinded; or
  - (3) **The purposes of the loan are no longer required to extend or improve telephone service in rural areas.**
- (b) Borrowers submitting loan applications containing purposes previously covered by a loan that has been rescinded shall include in the application an explanation, satisfactory to RUS, of the change of conditions since the rescission that re-establishes the need for those purposes.
- (c) RUS shall not initiate the rescission of a loan unless all of the purposes for which telephone loans have been made to the borrower under the Act have been accomplished with funds provided under the Act.

## Notes

### Amendments

[56 FR 26598, June 10, 1991, as amended at 84 FR 59922, Nov. 7, 2019]

### Source

Source: 54 FR 13351, Apr. 3, 1989, unless otherwise noted. Redesignated at 55 FR 39395, Sept. 27, 1990.

### Authority

Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.

### Source

Source: 54 FR 13352, Apr. 3, 1989, unless otherwise noted. Redesignated at 55 FR 39395, Sept. 27, 1990.

### Amendments

[56 FR 26598, June 10, 1991, as amended at 84 FR 59922, Nov. 7, 2019]