7 U.S.C. § 922 : US Code - Section 922: Loans for rural telephone service

Search 7 U.S.C. § 922 : US Code - Section 922: Loans for rural telephone service

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: 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. 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: 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. 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, 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 of
lines, facilities, or systems, providing reasonably adequate
services will result therefrom.