# Reduction in Minimum TIER Requirements
> **Rural Utilities Service** · Final rule. · Published 2000-08-25 · Effective 2000-09-25 · 65 FR 51747
## Document
- **Document number:** 00-21772
- **Category:** rural-development
- **Sub-agency:** Rural Utilities Service
- **Federal Register citation:** 65 FR 51747
- **CFR reference:** 7 CFR 1710
- **Publication date:** 2000-08-25
- **Effective date:** 2000-09-25
## Abstract

The Rural Utilities Service (RUS) hereby reduces the minimum TIER (Times Interest Earned Ratio) requirement to be met by Distribution Borrowers from 1.50 to 1.25. Reducing TIER to 1.25, while retaining the existing Debt Service Coverage (DSC), Operating Times Interest Earned Ratio (OTIER) and Operating Debt Service Coverage (ODSC) standards, will provide the borrowers with the flexibility to develop new and unique rate structures in an increasingly competitive retail marketplace, yet not jeopardize loan security. Conforming amendments relating to exemptions of RUS operational controls under section 306E of the Rural Electrification Act; consolidations and mergers; sale, lease or transfer of capital assets; advance approval-- 100 percent private financing of distribution, subtransmission and headquarters facilities, and certain other community infrastructure, and mortgage and loan agreements, are also contained herein.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2000/08/25/00-21772/reduction-in-minimum-tier-requirements)
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