§922 — Title 7 Agriculture | U.S. Code

Summary

The Secretary can make loans from money Congress gives under section 903 to people, public bodies, and cooperative, nonprofit, limited-dividend, or mutual associations that provide telephone service in rural areas. Loans follow the same terms as section 904 unless the subchapter says otherwise. They can pay to improve, expand, build, buy, or operate telephone lines, facilities, or systems to provide or improve rural service. The Secretary must favor existing rural providers and these cooperative or nonprofit groups and try to reach the largest practical number of rural users. Loans may be made even if the facilities are outside a rural area when needed to improve rural service. The Secretary may also refinance existing debt, including other telecom loans under this chapter. Loans are allowed only after the Secretary finds and certifies that the loan has reasonably adequate security, will be repaid on time, and will not cause duplication of lines or systems that already give adequate service.

Title 7, §922

Agriculture — Source: USLM XML via OLRC

From such sums as are from time to time made available by the Congress to the Secretary for such purpose, pursuant to section 903 of this title, the Secretary is authorized and empowered to make loans to persons now providing or who may hereafter provide telephone service in rural areas, to public bodies now providing telephone service in rural areas and to cooperative, nonprofit, limited dividend, or mutual associations. Except as otherwise provided by this subchapter, such loans shall be made under the same terms and conditions as are provided in section 904 of this title, for the purpose of financing the improvement, expansion, construction, acquisition, and operation of telephone lines, facilities, or systems to furnish and improve telephone service in rural areas: Provided, however, That the Secretary, in making such loans, shall give preference to persons providing telephone service in rural areas, to public bodies now providing telephone service in rural areas, and to cooperative, nonprofit, limited dividend, or mutual associations. The Secretary in making such loans shall, insofar as possible, obtain assurance that the telephone service to be furnished or improved thereby will be made available to the widest practical number of rural users. When it is determined by the Secretary to be necessary in order to furnish or improve telephone service in rural areas, such loans may be made for the improvement, expansion, construction, acquisition, and operation of telephone lines, facilities, or systems without regard to their geographical location. The Secretary is further authorized and empowered to make loans for the purpose of refinancing outstanding indebtedness of persons furnishing telephone service in rural areas, including indebtedness of recipients on another telecommunications loan made under this chapter. Loans under this section shall not be made unless the Secretary finds and certifies that in his judgment the security therefor is reasonably adequate and such loan will be repaid within the time agreed and that no duplication of lines, facilities, or systems, providing reasonably adequate services will result therefrom.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2018—Pub. L. 115–334, § 6702(2), which directed substitution of “certifies” for “centifies” in sixth sentence, could not be executed because the word “centifies” did not appear. Pub. L. 115–334, § 6702(1), which directed substitution of “widest” for “wildest” in third sentence, could not be executed because the word “wildest” did not appear. Pub. L. 115–334, § 6502, inserted section catchline and substituted “associations.” for “associations: And provided further, That for a period of one year from and after

October 28, 1949, applications for loans received by the Secretary from persons who on

October 28, 1949, are engaged in the operation of existing telephone service in rural areas shall be considered and acted upon before action is taken upon any application received from any other person for any loan to finance the furnishing or improvement of telephone service to substantially the same subscribers.” in second sentence and “and that no duplication” for “, nor shall such loan be made in any State which now has or may hereafter have a State regulatory body having authority to regulate telephone service and to require certificates of convenience and necessity to the applicant unless such certificate from such agency is first obtained. In a State in which there is no such agency or regulatory body legally authorized to issue such certificates to the applicant, no loan shall be made under this section unless the Secretary shall determine (and set forth his reasons therefor in writing) that no duplication” in last sentence. Pub. L. 115–334, § 6211, substituted “furnishing telephone service in rural areas, including indebtedness of recipients on another telecommunications loan made under this chapter.” for “furnishing telephone service in rural areas: Provided, That such refinancing shall be determined by the Secretary to be necessary in order to furnish and improve telephone service in rural areas: And provided further, That such refinancing shall constitute not more than 40 per centum of any loan made under this subchapter.” 1994—Pub. L. 103–354 substituted “Secretary” for “Administrator” wherever appearing. 1971—Pub. L. 92–12 inserted “, to public bodies now providing telephone service in rural areas” after “areas” in first sentence and after “areas” in first proviso of second sentence.

Statutory Notes and Related Subsidiaries

Effective Date

of 1971 AmendmentAmendment by Pub. L. 92–12 effective May 7, 1971, see section 7 of Pub. L. 92–12, set out as an

Effective Date

note under section 931 of this title.

§922 Loans for Telephone Service

Summary

Title 7, §922

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

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