Code of Federal Regulations Title 7. Agriculture § 7.1752.3 Definitions

The terms and conditions provided in this section are applicable to this part only. All financial terms not defined in this section shall have the commonly-accepted meaning under Generally Accepted Accounting Principles.

Acceleration. A written notice informing the Borrower that the total unpaid principal and interest is due and payable immediately.

Administrator. Administrator of the Rural Utilities Service.

Agency. The Rural Utilities Service, an agency of the United States Department of Agriculture's Rural Development mission area.

Assumption of debt. Agreement by one party to legally bind itself to repay the debt of the RUS borrower.

Borrower. Recipient of loan funding under a RUS Telecommunications Program.

Broadband system. The telecommunications or broadband network financed with RUS loan and/or grant funding or maintained by the Borrower and contained as part of the collateral to the loan.

Cancellation. Final discharge of debt with a release of liability.

Charge-off. Write-off of a debt and termination of servicing activity without release of liability. A charge-off is a decision by the Agency to remove debt from Agency receivables, however, future payments may be received.

Collateral. Means the assets, equipment and/or revenues pledged as security for the loan as defined in the loan documents.

Disposition of facility. Relinquishing control of a facility to another entity.

Loan Documents. All associated loan agreements, loan and security agreements, loan/grant agreements, mortgages, and promissory notes, as applicable.

Liquidation. Satisfaction of a debt through the sale of a Borrower's assets and cancellation of liabilities.

Parity lien. A lien having an equal lien position to another lender's lien on a Borrower's asset.

Rural Utilities Service (RUS). An agency of the United States Department of Agriculture's Rural Development mission area.

Settlement. Compromise, adjustment, cancellation, or charge-off of a debt owed to the Agency. The term “settlement” is used to refer to any of these actions, whether individually or collectively.

Unliquidated obligations. Obligated loan funds that have not been advanced.

Voluntary conveyance. A method by which title to security is voluntarily transferred to the Federal Government.