Title 7, AgricultureRelease 119-102
§925 Loan Feasibility
Title 7 › CHAPTER 31 — RURAL ELECTRIFICATION AND TELEPHONE SERVICE › SUBCHAPTER II — RURAL TELEPHONE SERVICE › § 925
Summary
When making a telephone loan, the Secretary cannot require the borrower to raise the prices they charge customers or subscribers. The Secretary also cannot force the borrower to increase the ratio of their net income (or profit before interest) to the required interest payments on all of their existing and planned loans.
Full Legal Text
Title 7, §925
Agriculture, Source: USLM XML via OLRC
The Secretary may not, as a condition of making a telephone loan to an applicant therefor, require the applicant to—
(1)increase the rates charged to the applicant’s customers or subscribers; or
(2)increase the applicant’s ratio of—
(A)net income or margins before interest; to
(B)the interest requirements on all of the applicant’s outstanding and proposed loans.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2018—Pub. L. 115–334 struck out “and the Governor of the telephone bank” after “The Secretary” in introductory provisions. 1994—Pub. L. 103–354 substituted “Secretary” for “Administrator”.
Reference
Citations & Metadata
Citation
7 U.S.C. § 925
Title 7, Agriculture
Last Updated
Aug 21, 2026
Release point: 119-102