Page:United States Statutes at Large Volume 104 Part 5.djvu/717

 PUBLIC LAW 101-624—NOV. 28, 1990 104 STAT. 4039 (2) the efficient operation of the Rural Telephone Bank and the Rural Electrification Administration telephone loan programs is essential to the continued development of the telecommunications infrastructure in rural areas in the United States, (b) STATEMENT OF POLICY. — I t is the policy of the Congress that the Rural Telephone Bank and the Rural Electrification Administration make loans that facilitate the development and enhancement of the rural telecommunications infrastructure in order to make modern telecommunications technology and services available at reasonable rates to the greatest practicable number of people in rural areas in the United States. CHAPTER 1—AMENDMENT TO TITLE I OF THE RURAL ELECTRIFICATION ACT OF 1936 SEC. 2353. GENERAL PROHIBITIONS. Title I (7 U.S.C. 901 et seq.) is amended by adding after the section added by section 2343 of this Act the following new section: "SEC. 18. GENERAL PROHIBITIONS. 7 USC 918. "The Administrator and the Grovernor of the telephone bank shall not deny or reduce any loan or loan advance under this Act based on a borrower's level of general funds.". CHAPTER 2—AMENDMENTS RELATING TO TITLE II OF THE RURAL ELECTRIFICATION ACT OF 1936 SEC. 2354. UPDATED DEFINITION OF TELEPHONE SERVICE. Section 203(a) (7 U.S.C. 924(a)) is amended— (1) by inserting "or reception" after "transmission"; (2) by inserting "data," after "voice,"; and (3) by striking "through the use of electricity between the transmitting and receiving apparatus" and inserting "by wire, fiber, radio, light, or other visual or electromagnetic means". SEC. 2355. LOAN FEASIBILITY. Title II (7 U.S.C. 922 et seq.) is amended by adding at the end the following new section: "SEC. 204. LOAN FEASIBILITY. 7 USC 925. "The Administrator and the Governor of the telephone bank 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.". SEC. 2356. ENCOURAGEMENT OF INVESTMENT BY TELEPHONE BORROW- ERS IN RURAL DEVELOPMENT PROJECTS. Title II (7 U.S.C. 922 et seq.) is amended by adding after the section added by section 2355 of this Act the following new section:

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