7 U.S.C. § 947 : US Code - Section 947: Borrowing power; telephone debentures; issuance; interest rates; terms and conditions; ratio to paid-in capital and retained earnings; investments in debentures; debentures as security; purchase and sale of debentures by the Secretary of the Treasury; treatment as public debt transactions of the United States; exclusion of transactions from budget totals

Search 7 U.S.C. § 947 : US Code - Section 947: Borrowing power; telephone debentures; issuance; interest rates; terms and conditions; ratio to paid-in capital and retained earnings; investments in debentures; debentures as security; purchase and sale of debentures by the Secretary of the Treasury; treatment as public debt transactions of the United States; exclusion of transactions from budget totals

(a) The telephone bank is authorized to obtain funds through the
public or private sale of its bonds, debentures, notes, and other
evidences of indebtedness (herein collectively called telephone
debentures). Telephone debentures shall be issued at such times,
bear interest at such rates, and contain such other terms and
conditions as the Telephone Bank Board shall determine: Provided,
however, That the amount of the telephone debentures which may be
outstanding at any one time pursuant to this section shall not
exceed twenty times the paid-in capital and retained earnings of
the telephone bank. Telephone debentures shall not be exempt,
either as to principal or interest, from any taxation now or
hereafter imposed by the United States, by any territory,
dependency, or possession thereof, or by any State or local taxing
authority. Telephone debentures shall be lawful investments and may
be accepted as security for all fiduciary, trust, and public funds,
the investment or deposit of which shall be under the authority and
control of the United States or any officer or officers thereof.
(b) The Telephone Bank is also authorized to issue telephone
debentures to the Secretary of the Treasury, and the Secretary of
the Treasury may in his discretion purchase any such debentures,
and for such purpose the Secretary of the Treasury is authorized to
use as a public debt transaction the proceeds of the sale of any
securities hereafter issued under chapter 31 of title 31, as now or
hereafter in force, and the purposes for which securities may be
issued under chapter 31 of title 31 as now or hereafter in force
are extended to include such purchases. Each purchase of telephone
debentures by the Secretary of the Treasury under this subsection
shall be upon such terms and conditions as to yield a return at a
rate not less than a rate determined by the Secretary of the
Treasury, taking into consideration the current average yield on
outstanding marketable obligations of the United States of
comparable maturity. The Secretary of the Treasury may sell, upon
such terms and conditions and at such price or prices as he shall
determine, any of the telephone debentures acquired by him under
this subsection. All purchases and sales by the Secretary of the
Treasury of such debentures under this subsection shall be treated
as public debt transactions of the United States.
(c) Purchases and resales by the Secretary of the Treasury as
authorized in subsection (b) of this section shall not be included
in the totals of the budget of the United States Government and
shall be exempt from any general limitation imposed by statute on
expenditures and net lending (budget outlays) of the United States.