§ 932. — Liabilities and uses of Rural Electrification and Telephone Revolving Fund.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC932]
TITLE 7--AGRICULTURE
CHAPTER 31--RURAL ELECTRIFICATION AND TELEPHONE SERVICE
SUBCHAPTER III--RURAL ELECTRIC AND TELEPHONE DIRECT LOAN PROGRAMS
Sec. 932. Liabilities and uses of Rural Electrification and
Telephone Revolving Fund
(a) Liabilities and obligations of fund
The notes of the Secretary to the Secretary of the Treasury to
obtain funds for loans under sections 904, 905,\1\ and 922 of this
title, and all other liabilities against the appropriations or assets in
the fund in connection with electrification and telephone loan
operations shall be liabilities of the fund, and all other obligations
against such appropriations or assets in the fund arising out of
electrification and telephone loan operations shall be obligations of
the fund.
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\1\ See References in Text note below.
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(b) Uses of fund assets
The assets of the fund shall be available only for the following
purposes:
(1) loans which could be insured under this subchapter, and for
advances in connection with such loans and loans previously made, as
of May 11, 1973, under sections 904, 905,\1\ and 922 of this title;
(2) payment of principal when due (without interest) on
outstanding loans to the Secretary from the Secretary of the
Treasury for electrification and telephone purposes and payment of
principal and interest when due on loans to the Secretary from the
Secretary of the Treasury pursuant to section 934(a) of this title;
(3) payment of amounts to which the holder of notes is entitled
on insured loans: Provided, That payments other than final payments
need not be remitted to the holder until due or until the next
agreed annual, semiannual, or quarterly remittance date;
(4) payment to the holder of insured notes of any defaulted
installment or, upon assignment of the note of the Secretary at his
request, the entire balance due on the note;
(5) purchase of notes in accordance with contracts of insurance
entered into by the Secretary;
(6) payment in compliance with contracts of guarantee;
(7) payment of taxes, insurance, prior liens, expenses necessary
to make fiscal adjustments in connection with the application, and
transmittal of collections or necessary to obtain credit reports on
applicants or borrowers, expenses for necessary services, including
construction, inspections, commercial appraisals, loan servicing,
consulting business advisory or other commercial and technical
services, and other program services, and other expenses and
advances authorized in section 907 of this title in connection with
insured loans. Such items may be paid in connection with guaranteed
loans after or in connection with the acquisition of such loans or
security thereof after default, to the extent determined to be
necessary to protect the interest of the Government, or in
connection with any other activity authorized in this chapter;
(8) payment of the purchase price and any costs and expenses
incurred in connection with the purchase, acquisition, or operation
of property pursuant to section 907 of this title.
(c) Separate electric and telephone accounts
(1) The Secretary shall maintain two separate accounts within the
fund, which shall be known as the electric account and the telephone
account, respectively.
(2)(A) The Secretary shall account for the assets, liabilities,
income, expenses, and equity of the fund attributable to electrification
loan operations in the electric account.
(B) The Secretary shall account for the assets, liabilities, income,
expenses, and equity of the fund attributable to telephone loan
operations in the telephone account.
(3)(A) The assets accounted for in the electric account shall be
available solely for electrification loan operations under this chapter.
(B) The assets accounted for in the telephone account shall be
available solely for telephone loan operations under this chapter (other
than under subchapter IV of this chapter).
(May 20, 1936, ch. 432, title III, Sec. 302, as added Pub. L. 92-12,
Sec. 2, May 7, 1971, 85 Stat. 30; amended Pub. L. 93-32, Sec. 2, May 11,
1973, 87 Stat. 66; Pub. L. 101-624, title XXIII, Sec. 2359, Nov. 28,
1990, 104 Stat. 4041; Pub. L. 103-354, title II, Sec. 235(a)(13), Oct.
13, 1994, 108 Stat. 3221; Pub. L. 104-127, title VII, Sec. 772(b)(2),
Apr. 4, 1996, 110 Stat. 1149.)
References in Text
Section 905 of this title, referred to in subsecs. (a) and (b)(1),
was repealed by Pub. L. 104-127, title VII, Sec. 774(a), Apr. 4, 1996,
110 Stat. 1150.
Amendments
1996--Subsec. (b)(2). Pub. L. 104-127 struck out ``pursuant to
section 903(a) of this title'' after ``purposes''.
1994--Subsecs. (a), (b)(2), (4), (5), (c)(1), (2). Pub. L. 103-354
substituted ``Secretary'' for ``Administrator'' wherever appearing.
1990--Subsec. (c). Pub. L. 101-624 added subsec. (c).
1973--Pub. L. 93-32 substituted provisions setting out the
liabilities of the Rural Electrification and Telephone Revolving Fund
and the allowable purposes for which fund assets shall be available, for
provisions, that the monies in the rural telephone account should remain
on deposit in the Treasury of the United States until disbursed.
Effective Date of 1973 Amendment
Amendment by Pub. L. 93-32 effective May 11, 1973, see section 12 of
Pub. L. 93-32, set out as an Effective Date note under section 930 of
this title.
Effective Date
Section effective May 7, 1971, see section 7 of Pub. L. 92-12, set
out as a note under section 921a of this title.
