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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations
Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.

1735.12

Subpart AGeneral 2. Amend 1735.1 by adding paragraph d to read as follows:

1735.1

General statement.

d Entities applying for a loan under this part may be eligible to receive a grant under 7 CFR 1738.101, for a portion of the project providing retail broadband service.
3. Amend 1735.2 by adding, in alphabetical order, the definition of Retail broadband service to read as follows:
1735.2

Definitions.

Retail broadband service means any technology identified by the Administrator as having the capacity to provide transmission facilities that enable the subscriber to receive a minimum level of service equal to at least a downstream transmission capacity of 25 megabits per second Mbps and an upstream transmission capacity of 3 Mbps. The agency may change the minimum transmission capacity by way of notice in the Federal Register. The minimum transmission capacity may be higher than 25 Mbps downstream and 3 Mbps upstream but cannot be lower.

Subpart BLoan Purposes and Basic Policies 4. Amend 1735.10 by:
a. Revising paragraph a2ii;
b. Removing paragraph e; and c. Redesignating paragraphs f and g as paragraphs e and f, respectively.
The revision reads as follows:

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1735.10

General.

a
2
ii Integrated interoperable emergency communications, including multiuse networks that provide critical transportation-related information services in addition to emergency communications services;

5. Amend 1735.12 by:
a. Revising paragraph a and b;
b. Removing paragraphs c2 and 3;
c. Redesignating paragraphs c4
through 12 as paragraphs c2
through 10, respectively; and d. Revising newly redesignated paragraph c5.
The revisions read as follows:

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Nonduplication.

a A loan will not be made unless the Administrator determines that no duplication of lines, facilities, or systems already providing reasonably adequate services shall result from such a loan.
b Existing borrowers that apply to upgrade existing facilities in their existing service area are exempt from the non-duplication requirement in paragraph a of this section.
c
5 The LECs network is capable of providing retail broadband service as defined in 1735.2 to any subscriber location.

6. Revise 1735.21 to read as follows:
1735.21

Refinancing loans.

a Any new direct or guaranteed loan authority provided under the RE Act may be used to refinance an outstanding obligation of the applicant on another loan made under Titles II and VI of the RE Act, or on a non-RUS loan if that loan would have been for eligible telecommunications purposes under the RE Act provided that:
1 The applicant is current with its payments on the RUS loans to be refinanced; and 2 The amortization period for that portion of the loan request that will be needed for refinancing will not exceed the remaining amortization period for the loans to be refinanced. If multiple notes are being refinanced, an average remaining amortization period will be calculated based on the weighted dollar average of the notes being refinanced.
b The amount that can be refinanced will be included in the funding opportunity announcement that will open a funding window based on the funds authorized for any given fiscal year.
7. Amend 1735.22 by revising paragraphs f, g, and i to read as follows:
1735.22

Loan security.

f RUS makes loans only if the borrowers entire system, including the facilities to be constructed with the proceeds of the loan, is economically feasible, as determined by RUS.
g For purposes of determining compliance with TIER requirements, unless a borrower whose existing mortgage contains TIER maintenance requirements notifies RUS in writing differently, RUS will apply the requirements described in paragraph h of this section to the borrower regardless
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of the provisions of the borrowers existing mortgage.

i Nothing in this section shall affect any rights of supplemental lenders under the RUS mortgage, or other creditors of the borrower, to limit a borrowers TIER requirement to a level above that established in paragraph h of this section.

8. Add 1735.23 to read as follows:
1735.23

Public notice.

a Applications for funding request in which the applicant will provide retail broadband service, the Agencys mapping tool will include the following information from each application, and will be displayed for the public:
1 The identity of the applicant;
2 A description of the project that can deliver retail broadband service;
3 A map of the areas to be served, the proposed funded service area PFSA, including identification of the associated census blocks;
4 The amount and type of funding requested;
5 The status of the application; and 6 The estimated number and proportion of households and businesses in the proposed funded service area without fixed retail broadband service, whether terrestrial or wireless, excluding mobile and satellite service.
b For funding requests outside an area where the applicant receives Federal universal service support, the public notice filing referenced under paragraph a of this section will accept public notice responses from existing service providers with respect to retail broadband service already being provided in the PFSA for 45 calendar days on the Agencys web page. Existing service providers are requested to submit the following information through the Agencys mapping tool:
1 The number of residential and business customers within the PFSA
currently purchasing broadband at the minimum threshold, the rates of data transmission being offered, and the cost of each level of broadband service charged by the existing service provider;
2 The number of residential and business customers within the applicants service area receiving voice and video services and the associated rates for these other services;
3 A map showing where the existing service providers services coincide with the applicants service area using the Agencys mapping tool; and 4 Test results for the service area in question for a minimum of at least the
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