DISCLAIMER: The contents of this guidance document does … - auto financing guaranteed approval

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• (1) 100% guaranteed auto financing
• (2) 100% guaranteed approval car loans
• (3) Guaranteed approval car dealerships
• (4) Car dealerships with guaranteed financing
• (5) Auto dealers with guaranteed financing

DISCLAIMER: The contents of this guidance document does not have the force and effect of law and is not
meant to bind the public in any way. This document is intended only to provide clarity to the public
regarding existing requirements under the law or agency policies.
UNITED STATES DEPARTMENT OF AGRICULTURE
Rural Utilities Service
BULLETIN 1710B-1
RD-GD-1998-27
SUBJECT: Guide to Federal Financing Bank Loans Guaranteed by RUS
TO: RUS Electric and Telecommunications Borrowers
EFFECTIVE DATE: Date of Approval
OFFICE OF PRIMARY INTEREST: Assistant Administrator, Electric Program
PREVIOUS INSTRUCTIONS: This is a new bulletin.
FILING INSTRUCTIONS: Electric Borrowers should file this bulletin with 7 CFR Part 1710, General
and Pre-loan Policies and Procedures Common to Insured and Guaranteed Electric Loans.
Telecommunications borrowers should file this bulletin with 7 CFR Part 1735, General Policies, Types of
Loans, Loan Requirements -- Telephone Program.
This bulletin is available on the RUS Home Page. The address is:
http://www.usda.gov/rus/home/home.htm
PURPOSE: This bulletin is a guide to assist electric and telecommunications borrowers in understanding
the terms, conditions, and options of RUS guaranteed loans made by the Federal Financing Bank (FFB).
These terms, conditions, and options are established in the FFB Future Advance Promissory Note
evidencing such a loan, and in RUS regulations at 7 CFR Chapter XVII.
RUS has made every effort to ensure the accuracy of the information in this guide. However, in case of
discrepancies, the Future Advance Promissory Note and RUS rules are the authoritative sources. RUS can
offer information about FFB interest rates and the terms and conditions of loans. However, the borrower is
ultimately responsible for final selection of options.
___BLAINE D. STOCKTON, JR.__________ ______2/24/98____________
Assistant Administrator Date
Electric Program
____KEN B. CHANDLER_________________ ______2/24/98____________
Assistant Administrator Date
Telecommunications Program
Bulletin 1710B-1
Page 2
TABLE OF CONTENTS
1. General
2. Interest rates and fees
3. Loan applications and servicing
4. Advance of funds
5. Requests for advances
6. Advance date
7. Maturity date
8. Principal repayment method
9. Prepayment/refinancing options
10. Exercising prepayment/refinancing options
11. Maturity extension
EXHIBIT
Annex A to Future Advance Promissory Note -- Form of Advance Request (RUS Approval Required)
INDEX:
Electric loan
Federal Financing Bank
Loan guarantee
Telecommunications loan
ABBREVIATIONS
FFB Federal Financing Bank
RTB Rural Telephone Bank
RUS Rural Utilities Service
USDA United States Department of Agriculture
DEFINITIONS
Annex means a form attached to the Future Advance Promissory Note evidencing an FFB loan. These
annexes are completed by the borrower and submitted to RUS and/or FFB when the borrower wishes to
receive fund advances from an FFB loan, or to extend maturity, prepay, or refinance such advances.
Borrower means any organization that has an outstanding loan made or guaranteed by RUS or RTB for
rural electrification or telecommunications, or which is seeking such financing.
Note means the Future Advance Promissory Note evidencing an FFB loan.
RE Act means the Rural Electrification Act of 1936, as amended, (7 U.S.C. 901 et seq.).
Treasury means the United States Department of the Treasury.
Bulletin 1710B-1
Page 3
1. GENERAL
1.1 Background: The Federal Financing Bank (FFB) is an instrumentality of the United States
Department of the Treasury. Section 306 of the RE Act authorizes RUS to offer 100 percent guarantees of
loans made by FFB to qualified electric and telecommunications borrowers.
1.2 Eligibility for FFB loans: Generally, electric and telecommunications borrowers eligible for loans
under section 305 of the RE Act, and telecommunications borrowers eligible for loans under section 408 of
the RE Act also qualify for RUS guarantees of FFB loans, if the borrower so elects.
Electric borrowers: Some electric borrowers are not eligible for insured loans under section 305
because they prepaid RUS loans under 7 CFR 1786 subpart F. These borrowers may be eligible
for RUS guarantees of FFB loans.
( ( Telecommunications borrowers: Some loan purposes are not eligible for RUS hardship, RUS
cost-of-money loans, or RTB loans. See RUS rules at CFR 1735.10(b), 1735.17, and 1735.21(a).
These purposes may be eligible for RUS guarantees of FFB loans.
1.3 For further information:
Electric borrowers: Basic loan eligibility requirements are in RUS rules at 7 CFR Part 1710.
For additional information, distribution borrowers should contact their RUS general field
representative or the Director of the Regional Division that serves as primary contact for the
borrower. Power supply borrowers should contact the Director, Power Supply Division.
( Telecommunications borrowers: Basic loan eligibility requirements are in RUS rules at 7 CFR
Parts 1735 and 1737. Specific information about guaranteed loans is in 7 CFR 1735.32. For
additional information, telecommunications borrowers should contact their RUS general field
representative or the Director of the Area Division that serves as primary contact for the borrower.
1.4 Financing options: FFB offers a wide range of financing options, including long- and short-term
maturities and prepayment and refinancing privileges. The borrower selects these options at the time loan
funds are advanced, and different options may be selected for each advance.
1.5 The Note: The vehicle for these financing options is the Future Advance Promissory Note evidencing
an RUS guaranteed FFB loan. A new form of Note, issued in 1997, is the result of a comprehensive effort
on the part of FFB and RUS to modernize and streamline loan procedures, and to provide a flexible debt
instrument that meets the needs of borrowers and lenders. This bulletin is intended to be a plain English
guide to the terms of the Note. In case of discrepancies, the Note and RUS rules are the authoritative
sources.
1.6 Electing financing options: RUS can offer information about loan eligibility, FFB interest rates, and
the terms and conditions of FFB loans. However, the borrower is ultimately responsible for the selection of
options.


What does guaranteed car financing mean? What you’ll need to qualify for guaranteed car finance include: A minimum income of $1,500 to $2,000 a month pre taxes (depending on the dealership) Recent pay stub Down payment (usually around $1,000 or 10% of the car’s selling price) Proof of residency (a utility bill should suffice) You may also be asked for a list of personal references

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