- (a) The borrower must obtain RUS approval of the force account method of construction of buildings in advance in order to obtain RUS financing.
- (b) The borrower shall prepare the P&S in accordance with § 1753.26.
(c) Prior to any construction activity or the purchase of materials or equipment, the borrower shall submit the FAP in duplicate to RUS, accompanied by a resolution indicating approval of the board of directors of the borrower or a letter signed by an authorized corporate official. The proposal shall include:
- (1) A Copy of the P&S.
- (2) An itemized list of all items of materials required for construction.
- (3) A construction schedule showing the estimated construction period for each major construction item.
- (4) An estimate of the material and labor and other costs for any construction item not provided for in the approved loan.
- (d) Force Account construction to be financed with loan funds shall not be started until RUS approval has been received by the borrower.
[54 FR 39267, Sept. 25, 1989. Redesignated at 55 FR 39396, Sept. 27, 1990, as amended at 59 FR 43717, Aug. 25, 1994]