§ 950. — Conversion of ownership, control, and operation of telephone bank.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC950]
TITLE 7--AGRICULTURE
CHAPTER 31--RURAL ELECTRIFICATION AND TELEPHONE SERVICE
SUBCHAPTER IV--RURAL TELEPHONE BANK
Sec. 950. Conversion of ownership, control, and operation of
telephone bank
(a) Transfer of powers and authority from Secretary of Agriculture to
Telephone Bank Board; cessation of Presidential appointees as
Board members and reduction in number of Board members; status
of telephone bank
Whenever fifty-one per centum of the maximum amount of class A stock
issued to the United States and outstanding at any time after September
30, 1985, has been fully redeemed and retired pursuant to section 946(c)
of this title--
(1) the powers and authority of the Governor of the telephone
bank granted to the Secretary by this subchapter shall vest in the
Telephone Bank Board, and may be exercised and performed through the
Governor of the telephone bank, to be selected by the Telephone Bank
Board, and through such other employees as the Telephone Bank Board
shall designate;
(2) the five members of the Telephone Bank Board designated by
the President pursuant to section 945(b)(1)(A) of this title shall
cease to be members, and the number of Board members shall be
accordingly reduced to eight unless other provision is thereafter
made in the bylaws of the telephone bank;
(3) the telephone bank shall cease to be an agency of the United
States, but shall continue in existence in perpetuity as an
instrumentality of the United States and as a banking corporation
with all of the powers and limitations conferred or imposed by this
subchapter except such as shall have lapsed pursuant to the
provisions of this subchapter.
(b) Restrictions of section 948(a)(2) of this title inapplicable to
loans upon redemption and retirement of class A stock
When all class A stock has been fully redeemed and retired, loans
made by the telephone bank shall not continue to be subject to the
restrictions prescribed in the provisos to section 948(a)(2) of this
title.
(c) Congressional review
Congress reserves the right to review the continued operations of
the telephone bank after all class A stock has been fully redeemed and
retired.
(May 20, 1936, ch. 432, title IV, Sec. 410, as added Pub. L. 92-12,
Sec. 2, May 7, 1971, 85 Stat. 36; amended Pub. L. 94-273, Sec. 2(2),
Apr. 21, 1976, 90 Stat. 375; Pub. L. 101-624, title XXIII,
Sec. 2363(b)(2), Nov. 28, 1990, 104 Stat. 4043; Pub. L. 103-354, title
II, Sec. 235(a)(11), Oct. 13, 1994, 108 Stat. 3221.)
Amendments
1994--Subsec. (a)(1). Pub. L. 103-354 substituted ``Secretary'' for
``Administrator of the Rural Electrification Administration''.
1990--Subsec. (a)(2). Pub. L. 101-624 substituted ``section
945(b)(1)(A) of this title'' for ``section 945(b) of this title''.
1976--Subsec. (a). Pub. L. 94-273 substituted ``September'' for
``June''.
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.
Section Referred to in Other Sections
This section is referred to in sections 943, 944 of this title;
title 31 sections 9101, 9108.
