7 U.S.C. § 928 — Prompt processing of telephone loans

Page 531 TITLE 7—AGRICULTURE § 928 credit, guarantee, or advance made to, an af- filiated company of the borrower, that is used by such company for such a purpose) as a divi- dend 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 in order to make an investment described in paragraph (1). (b) ‘‘Qualified telephone borrower’’ defined As used in subsection (a), 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, § 205, as added Pub. L. 101–624, title XXIII, § 2356, Nov. 28, 1990, 104 Stat. 4039; amended Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 115–334, title VI, § 6602(b)(3), Dec. 20, 2018, 132 Stat. 4776.) Editorial Notes AMENDMENTS 2018—Subsec. (a). Pub. L. 115–334, § 6602(b)(3)(A), struck out ‘‘and the Governor of the telephone bank’’ after ‘‘The Secretary’’ in introductory provisions. Subsec. (a)(2). Pub. L. 115–334, § 6602(b)(3)(B), struck out ‘‘or the Governor of the telephone bank’’ after ‘‘the Secretary’’. 1994—Subsec. (a). Pub. L. 103–354 substituted ‘‘Sec- retary’’ for ‘‘Administrator’’ in two places. § 927. General duties and prohibitions (a) Duties The Secretary shall— (1) in evaluating the feasibility of a tele- phone loan to be made to a borrower for tele- phone services, use— (A) with respect to items for which the regulatory authority with jurisdiction over the provision of such services has approved the depreciation rates used by the borrower, such approved rates; and (B) with respect to other items, the aver- age of the depreciation rates used by bor- rowers of telephone loans made under this chapter; (2) annually determine and publish the aver- age described in paragraph (2)(B); and (3) make loans for all purposes for which telephone loans are authorized under section 922 of this title, to the extent of qualifying ap- plications therefor. (b) Prohibitions The Secretary shall not— (1) rescind an insured telephone loan made under this chapter without the consent of the borrower, unless all of the purposes for which telephone loans have been made to the bor- rower under this chapter have been accom- plished with funds provided under this chap- ter; (2) regulate the order or sequence of ad- vances of funds under telephone loans made under this chapter to any borrower who has received any combination of telephone loans from the Secretary or the Federal Financing Bank; or (3) deny a loan or advance to, or take any other adverse action against, an applicant for, or a borrower of, a telephone loan under this chapter for any reason that is not based on a rule, regulation, bulletin, or other written pol- icy standard that has not been published pur- suant to section 553 of title 5. (May 20, 1936, ch. 432, title II, § 206, as added Pub. L. 101–624, title XXIII, § 2357, Nov. 28, 1990, 104 Stat. 4040; amended Pub. L. 103–354, title II, § 235(a)(7), (13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 115–334, title VI, § 6602(b)(4), (5), Dec. 20, 2018, 132 Stat. 4776.) Editorial Notes AMENDMENTS 2018—Subsec. (a). Pub. L. 115–334, § 6602(b)(4)(A), struck out ‘‘and the Governor of the telephone bank’’ after ‘‘The Secretary’’ in introductory provisions. Subsec. (a)(1), (2). Pub. L. 115–334, § 602(b)(4)(B), (D), redesignated pars. (2) and (3) as (1) and (2), respectively, and struck out par. (1) which read as follows: ‘‘notwith- standing section 553(a)(2) of title 5, cause to be pub- lished in the Federal Register, in accordance with sub- sections (b) through (e) of section 553 of such title, all rules, regulations, bulletins, and other written policy standards governing the operations of the telephone loan and loan guarantee programs administered under this chapter other than those relating to agency man- agement and personnel;’’. Subsec. (a)(3), (4). Pub. L. 115–334, § 6602(b)(4)(C), (D), redesignated par. (4) as (3) and struck out ‘‘or 948’’ after ‘‘section 922’’. Former par. (3) redesignated (2). Subsec. (b). Pub. L. 115–334, § 6602(b)(5)(A), struck out ‘‘and the Governor of the telephone bank’’ after ‘‘The Secretary’’ in introductory provisions. Subsec. (b)(1). Pub. L. 115–334, § 6602(b)(5)(B), struck out ‘‘, or a Rural Telephone Bank loan,’’ after ‘‘an in- sured telephone loan’’. Subsec. (b)(2). Pub. L. 115–334, § 6602(b)(5)(C), struck out ‘‘, the Rural Telephone Bank,’’ after ‘‘from the Secretary’’. 1994—Pub. L. 103–354 substituted ‘‘Secretary’’ for ‘‘Ad- ministrator’’ in subsecs. (a) and (b) and ‘‘Secretary’’ for ‘‘Rural Electrification Administration’’ in subsec. (b)(2). § 928. Prompt processing of telephone loans Within ten days after the end of the second and fourth calendar quarters of each year, the Secretary shall submit to the Committee on Ag- riculture and the Committee on Appropriations of the House of Representatives, and to the Committee on Agriculture, Nutrition, and For- estry and the Committee on Appropriations of the Senate, a report— (1) identifying each completed application for a telephone loan under section 935 of this title or a guarantee of a telephone loan under section 936 of this title that has not been fi- nally acted upon within ninety days after the date the completed application is submitted; and (2) stating the reasons for the failure to fi- nally act upon the completed applications within such ninety-day period. (May 20, 1936, ch. 432, title II, § 207, as added Pub. L. 101–624, title XXIII, § 2358, Nov. 28, 1990, 104 Page 532 TITLE 7—AGRICULTURE § 930 1 See References in Text note below. Stat. 4041; amended Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 115–334, title VI, § 6602(b)(6), Dec. 20, 2018, 132 Stat. 4776.) Editorial Notes AMENDMENTS 2018—Par. (1). Pub. L. 115–334 substituted ‘‘935 of this title or’’ for ‘‘935 of this title,’’ and struck out ‘‘, or a loan under section 948 of this title,’’ after ‘‘a telephone loan under section 936 of this title’’. 1994—Pub. L. 103–354 substituted ‘‘Secretary’’ for ‘‘Ad- ministrator’’. SUBCHAPTER III—RURAL ELECTRIC AND TELEPHONE DIRECT LOAN PROGRAMS § 930. Congressional declaration of policy It is hereby declared to be the policy of the Congress that adequate funds should be made available to rural electric and telephone sys- tems through direct, insured and guaranteed loans at interest rates which will allow them to achieve the objectives of the Rural Electrifica- tion Act of 1936, as amended [7 U.S.C. 901 et seq.], and that such rural electric and telephone systems should be encouraged and assisted to develop their resources and ability to achieve the financial strength needed to enable them to satisfy their credit needs from their own finan- cial organizations and other sources at reason- able rates and terms consistent with the loan applicant’s ability to pay and achievement of the Act’s objectives. (Pub. L. 93–32, § 1, May 11, 1973, 87 Stat. 65.) Editorial Notes REFERENCES IN TEXT The Rural Electrification Act of 1936 and the Act, re- ferred to in text, are act May 20, 1936, ch. 432, 49 Stat. 1363, which is classified generally to this chapter. For complete classification of this Act to the Code, see sec- tion 901 of this title and Tables. CODIFICATION Section is comprised of the first sentence of section 1 of Pub. L. 93–32. The last sentence of section 1 of Pub. L. 93–32 provided that: ‘‘The Rural Electrification Act of 1936, as amended (7 U.S.C. 901–950(b)), is therefore further amended as hereinafter provided.’’ Section was not enacted as part of the Rural Elec- trification Act of 1936 which comprises this chapter. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 93–32, § 12, May 14, 1973, 87 Stat. 71, provided that: ‘‘This Act [enacting sections 906a, 930, and 933 to 940 of this title, amending sections 903, 931, 932, 945, 946, 947, and 948 of this title, and enacting provisions set out as notes under this section] shall take effect upon en- actment [May 11, 1973].’’ RESERVATION OF RIGHT TO REPEAL, ALTER, OR AMEND PUB. L. 93–32 Pub. L. 93–32, § 11, May 14, 1973, 87 Stat. 71, provided that: ‘‘The right to repeal, alter, or amend, this Act [enacting sections 906a, 930, and 933 to 940 of this title, amending sections 903, 931, 932, 945, 946, 947, and 948 of this title, and enacting provisions set out as notes under this section] is expressly reserved.’’ § 931. Rural Electrification and Telephone Re- volving Fund There is hereby established in the Treasury of the United States a fund, to be known as the Rural Electrification and Telephone Revolving Fund (hereinafter referred to as the ‘‘fund’’), consisting of: (1) all notes, bonds, obligations, liens, mort- gages, and property delivered or assigned to the Secretary pursuant to loans heretofore or hereafter made under sections 904, 905,1 and 922 of this title and under this subchapter, as of May 11, 1973, and all proceeds from the sales hereunder of such notes, bonds, obligations, liens, mortgages, and property, which shall be transferred to and be assets of the funds; (2) undisbursed balances of electric and tele- phone loans made under sections 904, 905,1 and 922 of this title, which as of May 11, 1973, shall be transferred to and be assets of the fund; (3) all collections of principal and interest received on and after July 1, 1972, on notes, bonds, judgments, or other obligations made or held under subchapters I and II of this chap- ter and under this subchapter, which shall be paid into and be assets of the fund; (4) all appropriations for interest subsidies and losses required under this subchapter which may hereafter be made by the Congress and the unobligated balances of any funds made available for loans under the item ‘‘Rural Electrification Administration’’ in the Department of Agriculture and Agriculture- Environmental and Consumer Protection Ap- propriations Acts; or (5) moneys borrowed from the Secretary of the Treasury pursuant to section 934(a) of this title. (May 20, 1936, ch. 432, title III, § 301, as added Pub. L. 92–12, § 2, May 7, 1971, 85 Stat. 29; amend- ed Pub. L. 93–32, § 2, May 11, 1973, 87 Stat. 66; Pub. L. 94–570, § 2, Oct. 20, 1976, 90 Stat. 2701; Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 104–127, title VII, § 772(b)(1), Apr. 4, 1996, 110 Stat. 1149; Pub. L. 115–334, title VI, § 6602(b)(7), Dec. 20, 2018, 132 Stat. 4776.) Editorial Notes REFERENCES IN TEXT Section 905 of this title, referred to in pars. (1) and (2), was repealed by Pub. L. 104–127, title VII, § 774(a), Apr. 4, 1996, 110 Stat. 1150. AMENDMENTS 2018—Par. (3). Pub. L. 115–334, § 6602(b)(7)(A), struck out ‘‘except for net collection proceeds previously ap- propriated for the purchase of class A stock in the Rural Telephone Bank,’’ after ‘‘under this sub- chapter,’’. Par. (6). Pub. L. 115–334, § 6602(b)(7)(B)–(D), struck out par. (6) which read as follows: ‘‘shares of the capital stock of the Rural Telephone Bank purchased by the United States pursuant to section 946(a) of this title and moneys received from said bank upon retirement of said shares of stock in accordance with the provisions of subchapter IV of this chapter, which said shares and moneys shall be assets of the fund.’’ 1996—Pub. L. 104–127 struck out ‘‘(a)’’ before ‘‘There is hereby’’ in introductory provisions and struck out