(a) A private nonprofit organization is a corporation which: is owned and controlled by private persons; is organized and operated for purposes other than making gains or profits for the corporation or members; and, is legally precluded from distributing to its members any gains or profits.

(b) A public nonprofit organization is a nonprofit corporation other than a private nonprofit corporation, including a municipal corporation or other corporate agency of a State or local government.

(c) Rural area is open country or rural places as defined in 7 CFR part 3550, subpart A.

(d) Development cost means the cost of purchasing and developing the sites including engineering and legal fees, streets, roads, utilities, minimum essential administrative costs, necessary equipment and estimated interest which the borrower cannot pay from other sources.

(e) RHS section 523 loan means a loan to an organization which will provide sites for housing to be built by the self-help method.

(f) RHS section 524 loan means a loan to an organization which will provide sites for housing to be built with no limitation as to the method of construction that will be used.

(g) OGC means the Office of the General Counsel, including the regional attorney or attorney in charge serving the State in which the RHS project is located.