§ 942. — General powers.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC942]
TITLE 7--AGRICULTURE
CHAPTER 31--RURAL ELECTRIFICATION AND TELEPHONE SERVICE
SUBCHAPTER IV--RURAL TELEPHONE BANK
Sec. 942. General powers
To carry out the specific powers herein authorized, the telephone
bank shall have power to (a) adopt, alter, and use a corporate seal; (b)
sue and be sued in its corporate name; (c) make contracts, leases, and
cooperative agreements, or enter into other transactions as may be
necessary in the conduct of its business, and on such terms as it may
deem appropriate; (d) acquire, in any lawful manner, hold, maintain,
use, and dispose of property: Provided, That the telephone bank may only
acquire property needed in the conduct of its banking operations or
pledged or mortgaged to secure loans made hereunder or in temporary
operation or maintenance thereof: Provided further, That any such
pledged or mortgaged property so acquired shall be disposed of as
promptly as is consistent with prudent liquidation practices, but in no
event later than five years after such acquisition; (e) accept gifts or
donations of services or of property in aid of any of the purposes
herein authorized; (f) appoint such officers, attorneys, agents, and
employees, vest them with such powers and duties, fix and pay such
compensation to them for their services as the telephone bank may
determine; (g) determine the character of and the necessity for its
obligations and expenditures, and the manner in which they shall be
incurred, allowed, and paid; (h) execute, in accordance with its bylaws,
all instruments necessary or appropriate in the exercise of any of its
powers; (i) collect or compromise all obligations assigned to or held by
it and all legal or equitable rights accruing to it in connection with
the payment of such obligations until such time as such obligations may
be referred to the Attorney General for suit or collection; and (j)
exercise all such other powers as shall be necessary or incidental to
carrying out its functions under this subchapter.
(May 20, 1936, ch. 432, title IV, Sec. 402, as added Pub. L. 92-12,
Sec. 2, May 7, 1971, 85 Stat. 30.)
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.
