---
kind: "section"
citation: "7 C.F.R. § 1786.155"
title: "7"
number: "1786.155"
heading: "Eligible borrower."
url: "https://uscodex.org/cfr/7/1786.155"
---

# §1786.155. Eligible borrower.

- (a) To be eligible to prepay an electric loan under this subpart, the borrower must be in compliance with the following:
  - (1) The borrower shall be current on all payment obligations on outstanding loans made or guaranteed by RUS. For the purpose of determining eligibility for prepayment, a default by a power supply borrower from which a distribution borrower purchases wholesale power shall not be considered a default by the distribution borrower;
  - (2) There shall exist no material defaults under the borrower's RUS Loan Contract and Mortgage;
  - (3) The borrower shall have expended all funds advanced pursuant to the RUS Loan Contract for the purposes for which such funds were advanced. A borrower will not be eligible to prepay under this subpart if it has any funds advanced pursuant to the RUS Loan Contract in its Construction Fund Account; and
  - (4) The borrower shall be current on all obligations under any wholesale power contract with an RUS financed power supply borrower.
- (b) The eligibility of borrowers that have had any indebtedness representing loans made or guaranteed by RUS restructured shall be determined on a case by case basis considering the terms and conditions of the restructuring agreement.

## Notes

### Authority

Authority: 7 U.S.C. 901 et seq.; Pub. L. 103-354, 108 Stat. 3178 (7 U.S.C. 6941 et seq. ).

### Source

Source: 59 FR 13620, Mar. 22, 1994, unless otherwise noted.

### Authority

Authority: 7 U.S.C. 901-950b; Title I, subtitle B, Pub. L. 99-509; Pub. L. 101-624, 104 Stat. 4051; Pub. L. 103-354, 108 Stat. 3178, (7 U.S.C. 6941 et seq. ), unless otherwise noted.

### Source

Source: 55 FR 1145, Jan. 11, 1990, unless otherwise noted.