
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC926]

 
                          TITLE 7--AGRICULTURE
 
         CHAPTER 31--RURAL ELECTRIFICATION AND TELEPHONE SERVICE
 
                 SUBCHAPTER II--RURAL TELEPHONE SERVICE
 
Sec. 926. Certain rural development investments by qualified 
        telephone borrowers not treated as dividends or distributions
        

(a) In general

    The Secretary and the Governor of the telephone bank 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 \1/3\ of the net worth of the borrower; or
        (2) require a qualified telephone borrower to obtain the 
    approval of the Secretary or the Governor of the telephone bank in 
    order to make an investment described in paragraph (1).

(b) ``Qualified telephone borrower'' defined

    As used in subsection (a) of this section, 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, Sec. 205, as added Pub. L. 101-624, 
title XXIII, Sec. 2356, Nov. 28, 1990, 104 Stat. 4039; amended Pub. L. 
103-354, title II, Sec. 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.)


                               Amendments

    1994--Subsec. (a). Pub. L. 103-354 substituted ``Secretary'' for 
``Administrator'' in two places.
