Rd instruction 1942-a table of Contents




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17


(2-6-85, PN 856) (Revision 2)

RD Instruction 1942-A


§ 1942.12 Loan cancellation.


Loans which have been approved and obligations which have been established may be cancelled before closing as follows:
(a) Form RD 1940-10, "Cancellation of U.S. Treasury Check and/or Obligation." The Rural Development Manager or State Director may prepare and execute Form RD 1940-10 in accordance with the Forms Manual Insert (FMI). If the disbursement has been received or is subsequently received in the Area Office, the Rural Development Manager will return it as prescribed in RD Instruction 2018-D. (Revised 05-18-05, PN 386.)
(b) Notice of Cancellation. If the docket has been forwarded to OGC, that office will be notified of the cancellation by copy of Form RD 1940-10. Any application for title insurance, if ordered, will be cancelled. The borrower's attorney and engineer/architect, if any, should be notified of the cancellation. The Rural Development Manager may provide the borrower's attorney and engineer/architect with a copy of the notification to the applicant. The State Director will notify the Director of Legislative Affairs and Public Information by telephone or electronic mail and give the reason for such cancellation. (Revised 05-18-05, PN 386.)
§ 1942.13 Loan servicing.
Loans will be serviced under Subpart E of Part 1951 of this chapter.
§ 1942.14 Subsequent loans.
Subsequent loans will be processed under this subpart.
§ 1942.15 Delegation and redelegation of authority.
The State Director is responsible for implementing the authorities in this subpart and for issuing State supplements redelegating authorities. Loan and grant approval authority is in Subpart A of Part 1901 of this chapter. Except for loan and grant approval authority, Rural Development Manager may redelegate their duties to qualified staff members. (Revised 05-18-05,
PN 386.)
§ 1942.16 State supplements and guides.
State Directors will obtain National Office clearance for all State supplements and guides under RD Instruction 2006-B, (available in any Rural Development office).


17A

(Revision 4)


(2-6-85) PN 956

RD Instruction 1942-A

§ 1942.16 (Con.)

(a) State supplements. State Directors may supplement this subpart to meet State and local laws and regulations and to provide for orderly application processing and efficient service to applicants. State supplements shall not contain any requirements pertaining to bids, contract awards, and materials more restrictive than those in § 1942.18 of this subpart.


(b) State guides. State Directors may develop guides for use by applicants if the guides to this subpart are not adequate. State Director may prepare guides for items needed for the application, items necessary for the docket, and items required prior to loan closing or start of construction.

17B

(Revision 4)


RD Instruction 1942-A

Table of Contents



Sec. Page
1942.17 - Community Facilities 21
(a) General. 21

(b) Eligibility. 21

(1) Applicant. 21

(2) Facility. 22

(3) Credit elsewhere. 22

(4) Legal authority and responsibility. 22A

(5) Refinancing debt. 22A

(6) Expanded eligibility for timber dependent

communities in Pacific Northwest. 22
(c) Priorities. 23
(1) Truly rural areas. 23

(2) Project selection process. 23


(d) Eligible loan purposes. 28

(e) Facilities for public use. 32

(f) Rates and terms. 34
(1) General. 34

(2) Poverty line rate. 34

(3) Intermediate rate. 35

(4) Market rate. 35

(5) Prime farmland. 35

(6) Income determination. 35

(7) Repayment terms. 36
(g) Security. 36A
(1) Joint financing security. 37

(2) Public bodies. 38

(3) Other-than-public bodies. 41
(h) Economic feasibility requirements. 44
(1) Financial feasibility reports. 44

(2) Applicants for loans for utility-type

facilities. 44

(3) Utility-type facilities for new developing

communities or areas. 47


18

(Revision 4)


(2-6-85) PN 956

RD Instruction 1942-A

Table of Contents (Con.)
Sec. Page
1942.17 (Con.)
(i) Reserve requirements. 48

(1) General obligation or special assessment bonds. 48

(2) Other than general obligation or special

assessment bonds. 48


(j) General requirements. 48
(1) Membership authorization. 48

(2) Planning, bidding, contracting, constructing. 49

(3) Insurance and fidelity bonds. 49

(4) Acquisition of land, easements, water rights,

and existing facilities. 50B

(5) Lease agreements. 53

(6) Notes and bonds. 54

(7) Environmental requirements. 54

(8) Health care facilities. 54

(9) Public information. 54

(10) Service through individual installation. 55

(11) Funds from other sources. 55


(k) Other Federal, State, and local requirements. 56
(1) Compliance with special laws and regulations. 56

(2) Compliance exceptions. 56

(3) State Pollution Control or Environmental Protection Agency Standards. 56 (4) Consistency with other development plans. 56

(5) State agency regulating water rights. 56

(6) Civil Rights Act of 1964. 57

(7) Title IX of the Education Amendments of 1972. 57

(8) Section 504 of the Rehabilitation Act of 1973. 57

(9) Age Discrimination Act of 1975. 57

19

(Revision 4)



RD Instruction 1942-A

Table of Contents (Con.)


Sec. Page
1942.17 (Con.)
(l) Professional services and contracts related to the

facility. 58


(1) Professional services. 58

(2) Bond counsel. 58

(3) Contracts for other services. 58

(4) Fees. 58


(m) Applying for loans. 58
(1) Preapplication. 58

(2) Preapplication review. 58

(3) Incurring obligations. 59

(4) Results of preapplication review. 59

(5) Application conference. 59

(6) Application completion and assembling. 59

(7) Review of decision. 59

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