1738.2—Definitions.
As used in this part:
Acquisition means the purchase of operating broadband facilities or another broadband system whether by acquiring broadband facilities or equipment, or majority stock interest of one or more organizations.
Administrator means the Administrator of the Rural Utilities Service, or his or her designee.
Affiliate means an organization that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the applicant.
Applicant means an eligible entity requesting approval of a loan or loan guarantee under this part.
Borrower means any organization that has an outstanding loan made or guaranteed by RUS.
Broadband pilot program means that program implemented through Notices of Funds Availability, published in the Federal Register at 65 FR 75920 and at 67 FR 3140.
Broadband service means any technology identified by the Administrator as having the capacity to transmit data to enable a subscriber to the service to originate and receive high-quality voice, data, graphics, and video. To qualify as broadband, the project must offer data transmission services, and may provide voice, graphics, video, and other services. At the beginning of each fiscal year, RUS will publish a notice in the Federal Register defining the minimum rate-of-data transmission criteria to qualify as broadband service during that fiscal year's funding period.
Composite economic life means the weighted (by dollar amount of each class of facility in the loan) average economic life of all classes of facilities in the loan.
Economic life means the estimated useful service life of an asset as determined by RUS.
Eligible rural community is defined in the RE Act as any area of the United States that is not contained in an incorporated city or town with a population in excess of 20,000 inhabitants. For purposes of this part, RUS interprets:
(1)
“United States” to include its territories and insular possessions (including the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau);
(2)
“Area” to mean any identifiable place that has no more than 20,000 inhabitants based on the most recent available information of the Bureau of the Census; and
(3)
“An incorporated city or town with a population in excess of 20,000 inhabitants” to mean any incorporated city or town with a population in excess of 20,000 inhabitants based on the most recent available information of the Bureau of the Census.
Feasibility study means the pro forma financial analysis prepared by the applicant, and acceptable to RUS, to determine the economic feasibility of a loan.
Fiscal year means the fiscal year of the federal government.
Forecast period means the time period beginning on the date (base date) of the applicant's balance sheet used in preparing the feasibility study and ending on a date equal to the base date plus the number of years estimated in the feasibility study for completion of the construction covered by the loan. Feasibility projections are usually for 5 years.
Initial loan means the first loan made under section 601 of the RE Act to each eligible entity.
Interim construction means the construction, improvement, or acquisition of facilities and equipment prior to loan approval and release of funds.
Interim financing means funding for a project that RUS has acknowledged could be included in a loan prior to approving the loan.
Loan means any loan made or guaranteed under this part by RUS, unless otherwise noted.
Loan contract means the loan agreement between RUS and the borrower, including all amendments thereto.
Loan documents means the loan contract, note, and security instrument between the borrower and RUS and any associated document pertaining to a loan.
Loan funds means funds provided pursuant to a loan made or guaranteed under this part by RUS.
Mortgage means the security document between the borrower, as debtor, and RUS, as creditor, including any amendments and supplements thereto.
Private loan guarantee means a loan made by a non-Federal lender and guaranteed by RUS.
RE Act means the Rural Electrification Act of 1936, as amended (7 U.S.C. 901
et seq. ).
Release of funds means a determination by RUS that an applicant has complied with all of the conditions prerequisite to the advance of funds as set forth in the loan contract.
RUS means the Rural Utilities Service, an agency of the United States Department of Agriculture, and successor to the Rural Electrification Administration.
RUS telecommunications borrower means any organization that has an outstanding telecommunications loan made or guaranteed by RUS under Titles II, III, or IV of the RE Act.
Service area means the geographical area within which the applicant proposes to make broadband service available with a loan provided under this part.
Telecommunications means the transmission and reception of voice, data, sounds, signals, pictures, writings, or signs of all kinds, by wire, fiber, radio, light, or other visual or electromagnetic means.
TIER means Times Interest Earned Ratio. TIER is the ratio of an applicant's net income (after taxes) plus interest expense, all divided by interest expense. For the purpose of this calculation, all amounts will be annual figures and interest expense will include only interest on debt with a maturity greater than one year.