Collapse to view only § 927. General duties and prohibitions
- § 921. Congressional declaration of policy
- §§ 921a, 921b. Repealed.
- § 922. Loans for telephone service
- § 923. State regulation of telephone service
- § 924. Definition of telephone service and rural area
- § 925. Loan feasibility
- § 926. Certain rural development investments by qualified telephone borrowers not treated as dividends or distributions
- § 927. General duties and prohibitions
- § 928. Prompt processing of telephone loans
§ 921. Congressional declaration of policy
It is declared to be the policy of the Congress that adequate telephone service be made generally available in rural areas through the improvement and expansion of existing telephone facilities and the construction and operation of such additional facilities as are required to assure the availability of adequate telephone service to the widest practicable number of rural users of such service.
(Oct. 28, 1949, ch. 776, § 1, 63 Stat. 948.)
§§ 921a, 921b. Repealed. Pub. L. 115–334, title VI, § 6602(b)(13), (14), Dec. 20, 2018, 132 Stat. 4777
§ 922. Loans for telephone service
From such sums as are from time to time made available by the Congress to the Secretary for such purpose, pursuant to section 903 of this title, the Secretary is authorized and empowered to make loans to persons now providing or who may hereafter provide telephone service in rural areas, to public bodies now providing telephone service in rural areas and to cooperative, nonprofit, limited dividend, or mutual associations. Except as otherwise provided by this subchapter, such loans shall be made under the same terms and conditions as are provided in section 904 of this title
(May 20, 1936, ch. 432, title II, § 201, as added Oct. 28, 1949, ch. 776, § 5, 63 Stat. 948; amended Pub. L. 92–12, § 3(b), May 7, 1971, 85 Stat. 37; Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 115–334, title VI, §§ 6211, 6502, 6702, Dec. 20, 2018, 132 Stat. 4744, 4772, 4779.)
§ 923. State regulation of telephone service
Nothing contained in this chapter shall be construed to deprive any State commission, board, or other agency of jurisdiction, under any State law, now or hereafter effective, to regulate telephone service which is not subject to regulation by the Federal Communications Commission, under the Communications Act of 1934 [47 U.S.C. 151 et seq.], including the rates for such service.
(May 20, 1936, ch. 432, title II, § 202, as added Oct. 28, 1949, ch. 776, § 5, 63 Stat. 948.)
§ 924. Definition of telephone service and rural area
(a) As used in this subchapter, the term “telephone service” shall be deemed to mean any communication service for the transmission or reception of voice, data, sounds, signals, pictures, writing, or signs of all kinds by wire, fiber, radio, light, or other visual or electromagnetic means, and shall include all telephone lines, facilities, or systems used in the rendition of such service; but shall not be deemed to mean message telegram service or community antenna television system services or facilities other than those intended exclusively for educational purposes, or radio broadcasting services or facilities within the meaning of section 153(o) 1
1 See References in Text note below.
of title 47.(b) As used in this subchapter, the term “rural area” shall be deemed to mean any area of the United States not included within the boundaries of any incorporated or unincorporated city, village, or borough having a population in excess of 5,000 inhabitants.
(May 20, 1936, ch. 432, title II, § 203, as added Oct. 28, 1949, ch. 776, § 5, 63 Stat. 948; amended Pub. L. 87–862, Oct. 23, 1962, 76 Stat. 1140; Pub. L. 101–624, title XXIII, § 2354, Nov. 28, 1990, 104 Stat. 4039; Pub. L. 103–129, § 2(c)(5), Nov. 1, 1993, 107 Stat. 1364.)
§ 925. Loan feasibilityThe Secretary may not, as a condition of making a telephone loan to an applicant therefor, require the applicant to—
(1) increase the rates charged to the applicant’s customers or subscribers; or
(2) increase the applicant’s ratio of—
(A) net income or margins before interest; to
(B) the interest requirements on all of the applicant’s outstanding and proposed loans.
(May 20, 1936, ch. 432, title II, § 204, as added Pub. L. 101–624, title XXIII, § 2355, Nov. 28, 1990, 104 Stat. 4039; amended Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 115–334, title VI, § 6602(b)(2), Dec. 20, 2018, 132 Stat. 4776.)
§ 926. Certain rural development investments by qualified telephone borrowers not treated as dividends or distributions
(a) In general
The Secretary shall not—
(1) treat any amount invested by any qualified telephone borrower for any purpose described in section 2204b(c)(2) of this title (including any investment in, or extension of credit, guarantee, or advance made to, an affiliated company of the borrower, that is used by such company for such a purpose) as a dividend or distribution of capital to the extent that, immediately after such investment, the aggregate of such investments does not exceed ⅓ of the net worth of the borrower; or
(2) require a qualified telephone borrower to obtain the approval of the Secretary in order to make an investment described in paragraph (1).
(b) “Qualified telephone borrower” defined
As used in subsection (a), the term “qualified telephone borrower” means a person—
(1) to whom a telephone loan has been made or guaranteed under this chapter; and
(2) whose net worth is at least 20 percent of the total assets of such person.
(May 20, 1936, ch. 432, title II, § 205, as added Pub. L. 101–624, title XXIII, § 2356, Nov. 28, 1990, 104 Stat. 4039; amended Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 115–334, title VI, § 6602(b)(3), Dec. 20, 2018, 132 Stat. 4776.)
§ 927. General duties and prohibitions
(a) DutiesThe Secretary shall—
(1) in evaluating the feasibility of a telephone loan to be made to a borrower for telephone services, use—
(A) with respect to items for which the regulatory authority with jurisdiction over the provision of such services has approved the depreciation rates used by the borrower, such approved rates; and
(B) with respect to other items, the average of the depreciation rates used by borrowers of telephone loans made under this chapter;
(2) annually determine and publish the average described in paragraph (2)(B); and
(3) make loans for all purposes for which telephone loans are authorized under section 922 of this title, to the extent of qualifying applications therefor.
(b) ProhibitionsThe Secretary shall not—
(1) rescind an insured telephone loan made under this chapter without the consent of the borrower, unless all of the purposes for which telephone loans have been made to the borrower under this chapter have been accomplished with funds provided under this chapter;
(2) regulate the order or sequence of advances of funds under telephone loans made under this chapter to any borrower who has received any combination of telephone loans from the Secretary or the Federal Financing Bank; or
(3) deny a loan or advance to, or take any other adverse action against, an applicant for, or a borrower of, a telephone loan under this chapter for any reason that is not based on a rule, regulation, bulletin, or other written policy standard that has not been published pursuant to section 553 of title 5.
(May 20, 1936, ch. 432, title II, § 206, as added Pub. L. 101–624, title XXIII, § 2357, Nov. 28, 1990, 104 Stat. 4040; amended Pub. L. 103–354, title II, § 235(a)(7), (13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 115–334, title VI, § 6602(b)(4), (5), Dec. 20, 2018, 132 Stat. 4776.)
§ 928. Prompt processing of telephone loans
Within ten days after the end of the second and fourth calendar quarters of each year, the Secretary shall submit to the Committee on Agriculture and the Committee on Appropriations of the House of Representatives, and to the Committee on Agriculture, Nutrition, and Forestry and the Committee on Appropriations of the Senate, a report—
(1) identifying each completed application for a telephone loan under section 935 of this title or a guarantee of a telephone loan under section 936 of this title that has not been finally acted upon within ninety days after the date the completed application is submitted; and
(2) stating the reasons for the failure to finally act upon the completed applications within such ninety-day period.
(May 20, 1936, ch. 432, title II, § 207, as added Pub. L. 101–624, title XXIII, § 2358, Nov. 28, 1990, 104 Stat. 4041; amended Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 115–334, title VI, § 6602(b)(6), Dec. 20, 2018, 132 Stat. 4776.)