---
kind: "section"
citation: "7 C.F.R. § 1980.481"
title: "7"
number: "1980.481"
heading: "Insured loans."
url: "https://uscodex.org/cfr/7/1980.481"
---

# §1980.481. Insured loans.


Applications from private parties for whom Rural Development and such borrowers agree that a guarantee lender is not available and from public bodies shall be processed as insured loans in accordance with the applicable provisions of this subpart and [subpart A of part 1942](/cfr/7/part1942-subpartA.md) of this chapter, including the credit elsewhere requirement, except as provided in [§ 1980.488](/cfr/7/1980.488.md) of this subpart which provides for the guarantee of taxable bond issues of public bodies. Loans to public bodies will be used only to finance:

- (a) Community facilities as defined in [§ 1980.402](/cfr/7/1980.402.md) of this subpart, and
- (b) Constructing and equipping industrial plants for lease to private businesses (not including loans for operating such businesses) when the requesting loan is not available under [subpart A of part 1942](/cfr/7/part1942-subpartA.md) of this chapter.

## Notes

### Amendments

[52 FR 6501, Mar. 4, 1987, as amended at 53 FR 40403, Oct. 17, 1988]

### Source

Source: 52 FR 6501, Mar. 4, 1987, unless otherwise noted.

### Authority

Authority: 5 U.S.C. 301; 7 U.S.C. 1989. Subpart E also issued under 7 U.S.C. 1932(a).

### Amendments

[52 FR 6501, Mar. 4, 1987, as amended at 53 FR 40403, Oct. 17, 1988]