{"data":{"id":"us/7-cfr-1744.201","jurisdiction":"us","citation":"7 CFR 1744.201","heading":"Definitions.","body":"As used in this subpart:\nAdministrator means the Administrator of the Rural Utilities Service (RUS).\nAdvance means any funds provided of which repayment is expected.\nAffiliated company means any organization that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the borrower.\nBorrower means any organization which has an outstanding loan made by RUS or guaranteed by RUS, or which is seeking such financing.\nExtension of credit means to make loans or advances.\nGuarantee means to undertake collaterally to answer for the payment of another's debt or the performance of another's duty, liability, or obligation, including, without limitation, the obligations of affiliated companies. Some examples of such guarantees would include:\n(1) Guarantees of payment or collection on a note or other debt instrument;\n(2) Issuing performance bonds or completion bonds; or\n(3) Cosigning leases or other obligations of third parties.\nMaximum investment ratio means that the aggregate of all qualified investments by the borrower including the proposed qualified investment shall not be more than one-third of the net worth of the borrower.\nMinimum total assets ratio means the borrower's net worth is at least twenty percent of its total assets including the proposed qualified investment.\nNet plant means the sum of the balances of the following accounts of the borrower:\nAccount Names Number\n(1) Telecommunications plant in service 2001\n(2) Property held for future telecommunications use 2002\n(3) Telecommunications plant under construction-short term 2003\n(4) Telecommunications plant under construction-long term 2004\n(5) Telecommunications plant adjustment 2005\n(6) Nonoperating plant 2006\n(7) Goodwill 2007\n(8) Less accumulated depreciation 3100 through 3300s\n(9) Less accumulated amortization 3400 through 3600s\nNote: All references to account numbers are to the Uniform System of Accounts (47 CFR part 32).\nNet worth means the sum of the balances of the following accounts of the borrower:\nAccount Names Number\n(1) Capital stock 4510\n(2) Additional paid-in capital 4520\n(3) Treasury stock 4530\n(4) Other capital 4540\n(5) Retained earnings 4550\nNote: For nonprofit organizations, owners' equity is shown in subaccounts of 4540 and 4550. All references regarding account numbers are to the Uniform System of Accounts (47 CFR part 32).\nQualified investment is defined in § 1744.202(b).\nRE Act means the Rural Electrification Act of 1936, as amended (7 U.S.C. 901 et seq.).\nREA means the Rural Electrification Administration formerly an agency of the United States Department of Agriculture and predecessor agency to RUS with respect to administering certain electric and telephone loan programs.\nRural development investment is defined in § 1744.202(d).\nRUS means the Rural Utilities Service, an agency of the United States Department of Agriculture established pursuant to Section 232 of the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 (Pub. L. 103-354, 108 Stat. 3178), successor to REA with respect to administering certain electric and telephone programs. See 7 CFR 1700.1.\nRUS mortgage means the instrument creating a lien on or security interest in the borrower's assets in connection with a loan made or guaranteed under the RE Act.\nTotal assets means the sum of the balances of the following accounts of the borrower:\nAccount Names Number\n(1) Current assets 1100s through 1300s\n(2) Noncurrent assets 1400s through 1500s\n(3) Total telecommunications plant 2001 through 2007\n(4) Less accumulated depreciation 3100 through 3300s\n(5) Less accumulated amortization 3400 through 3600s\nNote: All references regarding account numbers are to the Uniform System of Accounts (47 CFR part 32).\nUniform System of Accounts means the Federal Communications Commission Uniform System of Accounts for Telecommunications Companies (47 CFR part 32) as supplemented by 7 CFR Part 1770, Accounting Requirements for RUS Telephone Borrowers.","path":["Title 7—Agriculture","Subtitle B—Regulations of the Department of Agriculture","CHAPTER XVII—RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE","PART 1744—POST-LOAN POLICIES AND PROCEDURES COMMON TO GUARANTEED AND INSURED TELEPHONE LOANS","Subpart E—Borrower Investments"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-7.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:01Z","sha256":"34c8eb063f6701198f77bb61d95feda358c353e4886101ebd56d5fb24f4e4cea","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-1744.200","next":"us/7-cfr-1744.202"},"notice":"GroundRules: Original legal text. Not legal advice."}