§ 926. — Certain rural development investments by qualified telephone borrowers not treated as dividends or distributions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 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.
