7 C.F.R. § 1744.201
As used in this subpart:
Administrator means the Administrator of the Rural Utilities Service (RUS).
Advance means any funds provided of which repayment is expected.
Affiliated 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.
Borrower means any organization which has an outstanding loan made by RUS or guaranteed by RUS, or which is seeking such financing.
Extension of credit means to make loans or advances.
Guarantee 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:
Maximum 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.
Minimum total assets ratio means the borrower's net worth is at least twenty percent of its total assets including the proposed qualified investment.
Net plant means the sum of the balances of the following accounts of the borrower:
| Account Names | Number |
| (1) Telecommunications plant in service | 2001 |
| (2) Property held for future telecommunications use | 2002 |
| (3) Telecommunications plant under construction-short term | 2003 |
| (4) Telecommunications plant under construction-long term | 2004 |
| (5) Telecommunications plant adjustment | 2005 |
| (6) Nonoperating plant | 2006 |
| (7) Goodwill | 2007 |
| (8) Less accumulated depreciation | 3100 through 3300s |
| (9) Less accumulated amortization | 3400 through 3600s |
NOTE: All references to account numbers are to the Uniform System of Accounts ( 47 CFR part 32 ).
Net worth means the sum of the balances of the following accounts of the borrower:
| Account Names | Number |
| (1) Capital stock | 4510 |
| (2) Additional paid-in capital | 4520 |
| (3) Treasury stock | 4530 |
| (4) Other capital | 4540 |
| (5) Retained earnings | 4550 |
NOTE: 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).
Qualified investment is defined in § 1744.202(b) .
RE Act means the Rural Electrification Act of 1936, as amended (7 U.S.C. 901 et seq.).
REA 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.
Rural development investment is defined in § 1744.202(d) .
RUS 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 .
RUS 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.
Total assets means the sum of the balances of the following accounts of the borrower:
| Account Names | Number |
| (1) Current assets | 1100s through 1300s |
| (2) Noncurrent assets | 1400s through 1500s |
| (3) Total telecommunications plant | 2001 through 2007 |
| (4) Less accumulated depreciation | 3100 through 3300s |
| (5) Less accumulated amortization | 3400 through 3600s |
NOTE: All references regarding account numbers are to the Uniform System of Accounts ( 47 CFR part 32 ).
Uniform 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.
7 C.F.R. §1744.201