
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 47USC614]

 
          TITLE 47--TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS
 
                 CHAPTER 5--WIRE OR RADIO COMMUNICATION
 
                 SUBCHAPTER VI--MISCELLANEOUS PROVISIONS
 
Sec. 614. Telecommunications Development Fund


(a) Purpose of section

    It is the purpose of this section--
        (1) to promote access to capital for small businesses in order 
    to enhance competition in the telecommunications industry;
        (2) to stimulate new technology development, and promote 
    employment and training; and
        (3) to support universal service and promote delivery of 
    telecommunications services to underserved rural and urban areas.

(b) Establishment of Fund

    There is hereby established a body corporate to be known as the 
Telecommunications Development Fund, which shall have succession until 
dissolved. The Fund shall maintain its principal office in the District 
of Columbia and shall be deemed, for purposes of venue and jurisdiction 
in civil actions, to be a resident and citizen thereof.

(c) Board of Directors

                 (1) Composition of Board; Chairman

        The Fund shall have a Board of Directors which shall consist of 
    7 persons appointed by the Chairman of the Commission. Four of such 
    directors shall be representative of the private sector and three of 
    such directors shall be representative of the Commission, the Small 
    Business Administration, and the Department of the Treasury, 
    respectively. The Chairman of the Commission shall appoint one of 
    the representatives of the private sector to serve as chairman of 
    the Fund within 30 days after February 8, 1996, in order to 
    facilitate rapid creation and implementation of the Fund. The 
    directors shall include members with experience in a number of the 
    following areas: finance, investment banking, government banking, 
    communications law and administrative practice, and public policy.

             (2) Terms of appointed and elected members

        The directors shall be eligible to serve for terms of 5 years, 
    except of the initial members, as designated at the time of their 
    appointment--
            (A) 1 shall be eligible to service for a term of 1 year;
            (B) 1 shall be eligible to service for a term of 2 years;
            (C) 1 shall be eligible to service for a term of 3 years;
            (D) 2 shall be eligible to service for a term of 4 years; 
        and
            (E) 2 shall be eligible to service for a term of 5 years (1 
        of whom shall be the Chairman).

    Directors may continue to serve until their successors have been 
    appointed and have qualified.

               (3) Meetings and functions of the Board

        The Board of Directors shall meet at the call of its Chairman, 
    but at least quarterly. The Board shall determine the general 
    policies which shall govern the operations of the Fund. The Chairman 
    of the Board shall, with the approval of the Board, select, appoint, 
    and compensate qualified persons to fill the offices as may be 
    provided for in the bylaws, with such functions, powers, and duties 
    as may be prescribed by the bylaws or by the Board of Directors, and 
    such persons shall be the officers of the Fund and shall discharge 
    all such functions, powers, and duties.

(d) Accounts of Fund

    The Fund shall maintain its accounts at a financial institution 
designated for purposes of this section by the Chairman of the Board 
(after consultation with the Commission and the Secretary of the 
Treasury). The accounts of the Fund shall consist of--
        (1) interest transferred pursuant to section 309(j)(8)(C) of 
    this title;
        (2) such sums as may be appropriated to the Commission for 
    advances to the Fund;
        (3) any contributions or donations to the Fund that are accepted 
    by the Fund; and
        (4) any repayment of, or other payment made with respect to, 
    loans, equity, or other extensions of credit made from the Fund.

(e) Use of Fund

    All moneys deposited into the accounts of the Fund shall be used 
solely for--
        (1) the making of loans, investments, or other extensions of 
    credits to eligible small businesses in accordance with subsection 
    (f) of this section;
        (2) the provision of financial advice to eligible small 
    businesses;
        (3) expenses for the administration and management of the Fund 
    (including salaries, expenses, and the rental or purchase of office 
    space for the fund); \1\
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    \1\ So in original. Probably should be ``Fund);''.
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        (4) preparation of research, studies, or financial analyses; and
        (5) other services consistent with the purposes of this section.

(f) Lending and credit operations

    Loans or other extensions of credit from the Fund shall be made 
available in accordance with the requirements of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661 et seq.) and any other applicable law 
to an eligible small business on the basis of--
        (1) the analysis of the business plan of the eligible small 
    business;
        (2) the reasonable availability of collateral to secure the loan 
    or credit extension;
        (3) the extent to which the loan or credit extension promotes 
    the purposes of this section; and
        (4) other lending policies as defined by the Board.

(g) Return of advances

    Any advances appropriated pursuant to subsection (d)(2) of this 
section shall be disbursed upon such terms and conditions (including 
conditions relating to the time or times of repayment) as are specified 
in any appropriations Act providing such advances.

(h) General corporate powers

    The Fund shall have power--
        (1) to sue and be sued, complain and defend, in its corporate 
    name and through its own counsel;
        (2) to adopt, alter, and use the corporate seal, which shall be 
    judicially noticed;
        (3) to adopt, amend, and repeal by its Board of Directors, 
    bylaws, rules, and regulations as may be necessary for the conduct 
    of its business;
        (4) to conduct its business, carry on its operations, and have 
    officers and exercise the power granted by this section in any State 
    without regard to any qualification or similar statute in any State;
        (5) to lease, purchase, or otherwise acquire, own, hold, 
    improve, use, or otherwise deal in and with any property, real, 
    personal, or mixed, or any interest therein, wherever situated, for 
    the purposes of the Fund;
        (6) to accept gifts or donations of services, or of property, 
    real, personal, or mixed, tangible or intangible, in aid of any of 
    the purposes of the Fund;
        (7) to sell, convey, mortgage, pledge, lease, exchange, and 
    otherwise dispose of its property and assets;
        (8) to appoint such officers, attorneys, employees, and agents 
    as may be required, to determine their qualifications, to define 
    their duties, to fix their salaries, require bonds for them, and fix 
    the penalty thereof; and
        (9) to enter into contracts, to execute instruments, to incur 
    liabilities, to make loans and equity investment, and to do all 
    things as are necessary or incidental to the proper management of 
    its affairs and the proper conduct of its business.

(i) Accounting, auditing, and reporting

    The accounts of the Fund shall be audited annually. Such audits 
shall be conducted in accordance with generally accepted auditing 
standards by independent certified public accountants. A report of each 
such audit shall be furnished to the Secretary of the Treasury and the 
Commission. The representatives of the Secretary and the Commission 
shall have access to all books, accounts, financial records, reports, 
files, and all other papers, things, or property belonging to or in use 
by the Fund and necessary to facilitate the audit.

(j) Report on audits by Treasury

    A report of each such audit for a fiscal year shall be made by the 
Secretary of the Treasury to the President and to the Congress not later 
than 6 months following the close of such fiscal year. The report shall 
set forth the scope of the audit and shall include a statement of assets 
and liabilities, capital and surplus or deficit; a statement of surplus 
or deficit analysis; a statement of income and expense; a statement of 
sources and application of funds; and such comments and information as 
may be deemed necessary to keep the President and the Congress informed 
of the operations and financial condition of the Fund, together with 
such recommendations with respect thereto as the Secretary may deem 
advisable.

(k) Definitions

    As used in this section:

                     (1) Eligible small business

        The term ``eligible small business'' means business enterprises 
    engaged in the telecommunications industry that have $50,000,000 or 
    less in annual revenues, on average over the past 3 years prior to 
    submitting the application under this section.

                              (2) Fund

        The term ``Fund'' means the Telecommunications Development Fund 
    established pursuant to this section.

                   (3) Telecommunications industry

        The term ``telecommunications industry'' means communications 
    businesses using regulated or unregulated facilities or services and 
    includes broadcasting, telecommunications, cable, computer, data 
    transmission, software, programming, advanced messaging, and 
    electronics businesses.

(June 19, 1934, ch. 652, title VII, Sec. 714, as added Pub. L. 104-104, 
title VII, Sec. 707(b), Feb. 8, 1996, 110 Stat. 154.)

                       References in Text

    The Federal Credit Reform Act of 1990, referred to in subsec. (f), 
is title V of Pub. L. 93-344 as added by Pub. L. 101-508, title XIII, 
Sec. 13201(a), Nov. 5, 1990, 104 Stat. 1388-609, which is classified 
generally to subchapter III (Sec. 661 et seq.) of chapter 17A of Title 
2, The Congress. For complete classification of this Act to the Code, 
see Short Title note set out under section 621 of Title 2 and Tables.

                  Section Referred to in Other Sections

    This section is referred to in section 309 of this title.
