Rescissions of loans.

(a) Rescission of a loan may be requested by a borrower at any time. To rescind a loan, the borrower must demonstrate to RUS that: (1) The purposes of the loan being rescinded have been completed; (2) Sufficient funds are available from sources other than RUS or FFB to complete the purposes of the loan being rescinded; or (3) The purposes of the loan are no longer required to extend or improve telephone service in rural areas. (b) Borrowers submitting loan applications containing purposes previously covered by a loan that has been rescinded shall include in the application an explanation, satisfactory to RUS, of the change of conditions since the rescission that re-establishes the need for those purposes. (c) RUS shall not initiate the rescission of a loan unless all of the purposes for which telephone loans have been made to the borrower under the Act have been accomplished with funds provided under the Act. [56 FR 26598, June 10, 1991, as amended at 84 FR 59922, Nov. 7, 2019]