7 U.S.C. § 932 : US Code - Section 932: Liabilities and uses of Rural Electrification and Telephone Revolving Fund

Search 7 U.S.C. § 932 : US Code - Section 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 sections 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 operations 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 Secretary 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 of the Secretary at
his request, the entire balance due on the note;
(5) purchase of notes in accordance with contracts of insurance
entered into by the Secretary;
(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 transmittal of collections or necessary to
obtain credit reports on applicants or borrowers, expenses for
necessary services, including construction, 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 guaranteed loans after or in
connection with the acquisition of such loans or security thereof
after default, to the extent determined to be necessary to
protect the interest of the Government, or in connection with any
other activity 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 account, respectively.
(2)(A) The Secretary shall account for the assets, liabilities,
income, expenses, and equity of the fund attributable to
electrification loan operations in the electric account.
(B) The Secretary shall account for the assets, liabilities,
income, expenses, and equity of the fund attributable to telephone
loan operations in the telephone account.
(3)(A) The assets accounted for in the electric account shall be
available solely for electrification loan operations under this
chapter.
(B) The assets accounted for in the telephone account shall be
available solely for telephone loan operations under this chapter
(other than under subchapter IV of this chapter).