§ 922. — Loans for rural telephone service.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC922]
TITLE 7--AGRICULTURE
CHAPTER 31--RURAL ELECTRIFICATION AND TELEPHONE SERVICE
SUBCHAPTER II--RURAL TELEPHONE SERVICE
Sec. 922. Loans for rural 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, for the purpose of financing the
improvement, expansion, construction, acquisition, and operation of
telephone lines, facilities, or systems to furnish and improve telephone
service in rural areas: Provided, however, That the Secretary, in making
such loans, shall give preference to persons providing telephone service
in rural areas, to public bodies now providing telephone service in
rural areas, and to cooperative, nonprofit, limited, dividend, or mutual
associations: And provided further, That for a period of one year from
and after October 28, 1949, applications for loans received by the
Secretary from persons who on October 28, 1949, are engaged in the
operation of existing telephone service in rural areas shall be
considered and acted upon before action is taken upon any application
received from any other person for any loan to finance the furnishing or
improvement of telephone service to substantially the same subscribers.
The Secretary in making such loans shall, insofar as possible, obtain
assurance that the telephone service to be furnished or improved thereby
will be made available to the widest practical number of rural users.
When it is determined by the Secretary to be necessary in order to
furnish or improve telephone service in rural areas, such loans may be
made for the improvement, expansion, construction, acquisition, and
operation of telephone lines, facilities, or systems without regard to
their geographical location. The Secretary is further authorized and
empowered to make loans for the purpose of refinancing outstanding
indebtedness of persons furnishing telephone service in rural areas:
Provided, That such refinancing shall be determined by the Secretary to
be necessary in order to furnish and improve telephone service in rural
areas: And provided further, That such refinancing shall constitute not
more than 40 per centum of any loan made under this subchapter. Loans
under this section shall not be made unless the Secretary finds and
certifies that in his judgment the security therefor is reasonably
adequate and such loan will be repaid within the time agreed, nor shall
such loan be made in any State which now has or may hereafter have a
State regulatory body having authority to regulate telephone service and
to require certificates of convenience and necessity to the applicant
unless such certificate from such agency is first obtained. In a State
in which there is no such agency or regulatory body legally authorized
to issue such certificates to the applicant, no loan shall be made under
this section unless the Secretary shall determine (and set forth his
reasons therefor in writing) that no duplication of lines, facilities,
or systems, providing reasonably adequate services will result
therefrom.
(May 20, 1936, ch. 432, title II, Sec. 201, as added Oct. 28, 1949, ch.
776, Sec. 5, 63 Stat. 948; amended Pub. L. 92-12, Sec. 3(b), May 7,
1971, 85 Stat. 37; Pub. L. 103-354, title II, Sec. 235(a)(13), Oct. 13,
1994, 108 Stat. 3221.)
Amendments
1994--Pub. L. 103-354 substituted ``Secretary'' for
``Administrator'' wherever appearing.
1971--Pub. L. 92-12 inserted ``, to public bodies now providing
telephone service in rural areas'' after ``areas'' in first sentence and
after ``areas'' in first proviso of second sentence.
Effective Date of 1971 Amendment
Amendment by Pub. L. 92-12 effective May 7, 1971, see section 7 of
Pub. L. 92-12, set out as an Effective Date note under section 921a of
this title.
Section Referred to in Other Sections
This section is referred to in sections 907, 912, 927, 931, 932,
940c-1, 946, 948, 950b of this title.
