Page:United States Statutes at Large Volume 104 Part 5.djvu/718

 104 STAT. 4040 PUBLIC LAW 101-624—NOV. 28, 1990 7 USC 926 "SEC. 205. CERTAIN RURAL DEVELOPMENT INVESTMENTS BY QUALIFIED TELEPHONE BORROWERS NOT TREATED AS DIVIDENDS OR DISTRIBUTIONS. "(a) IN GENERAL.—The Administrator and the Governor of the telephone bank shall not— "(1) treat any amount invested by any qualified telephone borrower for any purpose described in section 607(c)(2) of the Rural Development Act of 1972 (including any investment in, or extension of credit, guarantee, or advance made to, an affiliated company of the borrower, that is used by such company for such a purpose) as a dividend or distribution of capital to the extent that, immediately after such investment, the aggregate of such investments does not exceed Vs of the net worth of the borrower; or "(2) require a qualified telephone borrower to obtain the approval of the Administrator or the Governor of the telephone bank in order to make an investment described in paragraph (1). "(b) QUALIFIED TELEPHONE BORROWER DEFINED. —As used in subsection (a), the term 'qualified telephone borrower' means a person— "(1) to whom a telephone loan has been made or guaranteed under this Act; and "(2) whose net worth is at least 20 percent of the total assets of such person.". SEC. 2357. IMPROVEMENTS IN TELEPHONE PROGRAM. Title II (7 U.S.C. 922 et seq.) is amended by adding after the sections added by sections 2355 and 2356 of this Act the following new section: 7 USC 927. "SEC. 206. GENERAL DUTIES AND PROHIBITIONS. "(a) DUTIES.— The Administrator and the Governor of the telephone bank shall— Federal "(1) notwithstanding section 553(a)(2) of title 5, United States Register, C!ode, cause to be published in the Federal Register, in accordpu ica ion. ^j^^g Yfith subsections (b) through (e) of section 553 of such title, all rules, regulations, bulletins, and other written policy standards governing the operations of the telephone loan and loan guarantee programs administered under this Act other than those relating to agency management and personnel; "(2) in evaluating the feasibility of a telephone loan to be made to a borrower for telephone services, use— "(A) with respect to items for which the regulatory authority with jurisdiction over the provision of such services has approved the depreciation rates used by the borrower, such approved rates; and "(B) with respect to other items, the average of the depreciation rates used by borrowers of telephone loans made under this Act; "(3) annually determine and publish the average described in pargigraph (2)(B); and "(4) make loans for all purposes for which telephone loans are authorized under section 201 or 408, to the extent of qualifying applications therefor. "(b) PROHIBITIONS. —The Administrator and the Governor of the telephone bank shall not—

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