7 U.S.C. § 931 — Rural Electrification and Telephone Re-

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 Page 533 TITLE 7—AGRICULTURE § 932 1 See References in Text note below. ‘‘notwithstanding section 903(a) of this title,’’ before ‘‘all collections’’ in par. (3). 1994—Subsec. (a)(1). Pub. L. 103–354 substituted ‘‘Sec- retary’’ for ‘‘Administrator’’. 1976—Subsec. (a)(4). Pub. L. 94–570 provided for inclu- sion in the fund the unobligated balances of any funds made available for loans under item ‘‘Rural Electrifica- tion Administration’’ in the Department of Agriculture and Agriculture-Environmental and Consumer Protec- tion Appropriation Acts. 1973—Pub. L. 93–32 substituted provisions establishing the Rural Electrification and Telephone Revolving Fund and enumerating its constituent parts, for provi- sions establishing a rural telephone account in the United States Treasury. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–570 effective Oct. 20, 1976, see section 4 of Pub. L. 94–570, set out as a note under section 935 of this title. 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 Pub. L. 92–12, § 7, May 14, 1971, 85 Stat. 37, provided that: ‘‘This Act [enacting this section and sections 921a, 932, and 941 to 950b of this title, amending sections 903 and 922 of this title and sections 856 and 868 of former Title 31, and enacting provisions set out as notes under sections 856 and 868 of former Title 31] shall take effect upon enactment [May 7, 1971].’’ RESERVATION OF RIGHT TO REPEAL, ALTER, OR AMEND PUB. L. 92–12 Pub. L. 92–12, § 6, May 14, 1971, 85 Stat. 37, provided that: ‘‘The right to repeal, alter, or amend this Act [en- acting this section and sections 921a, 932, and 941 to 950b of this title, amending sections 903 and 922 of this title and sections 856 and 868 of former Title 31, and en- acting provisions set out as notes under sections 856 and 868 of former Title 31] is expressly reserved.’’ § 931a. Level of loan programs under Rural Elec- trification and Telephone Revolving Fund On and after October 28, 1991, no funds in this Act or any other Act shall be available to carry out loan programs under the Rural Electrifica- tion and Telephone Revolving Fund at levels other than those provided for in advance in ap- propriations Acts. (Pub. L. 102–142, title III, Oct. 28, 1991, 105 Stat. 903.) Editorial Notes CODIFICATION Section was enacted as part of the Agriculture, Rural Development, Food and Drug Administration, and Re- lated Agencies Appropriations Act, 1992, and not as part of the Rural Electrification Act of 1936 which com- prises this chapter. § 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 sec- tions 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 oper- ations shall be obligations of the fund. (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 Sec- retary 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 to the Secretary at his request, the entire balance due on the note; (5) purchase of notes in accordance with con- tracts of insurance entered into by the Sec- retary; (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 trans- mittal of collections or necessary to obtain credit reports on applicants or borrowers, ex- penses for necessary services, including con- struction 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 guaran- teed loans after or in connection with the ac- quisition of such loans or security thereof after default, to the extent determined to be necessary to protect the interest of the Gov- ernment, or in connection with any other ac- tivity 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 ac- count, respectively. (2)(A) The Secretary shall account for the as- sets, liabilities, income, expenses, and equity of the fund attributable to electrification loan op- erations in the electric account.