Page:United States Statutes at Large Volume 104 Part 5.djvu/720

 104 STAT. 4042 PUBLIC LAW 101-624—NOV. 28, 1990 "(B) The assets accounted for in the telephone account shall be available solely for telephone loan operations under this Act (other than under title IV).". SEC. 2360. BORROWERS TO DETERMINE AMORTIZATION PERIOD FOR IN- SURED TELEPHONE LOANS. 7 USC 939. Section 309 (7 U.S.C. 940) is amended— (1) by striking "SEC. 309. LOAN TERMS AND CONDITIONS.— Loans made from or" and inserting the following: "SEC. 309. LOAN TERMS AND CONDITIONS. "(a) IN GENERAL.— Loans made from or"; and (2) by adding at the end the following new subsection: "(b) TELEPHONE LOANS UNDER THIS TITLE.— The term of any telephone loan made under thi^ title shall be determined by the borrower at the time the loan application is submitted.". SEC. 2361. TIER REQUIREMENT FOR INSURED TELEPHONE LOANS. Section 305 (7 U.S.C. 935) is amended by adding at the end the following new subsection: "(d) The Administrator shall make a telephone loan under this title to an applicant therefor who is otherwise qualified to receive such a loan at the highest interest rate (but not less than the lowest interest rate, nor higher than the highest interest rate, specified in subsection (b)) at which the borrower would be capable of producing net income or margins before interest payments of at least 100 percent (but not more than 150 percent) of the interest requirements on all of the applicant's outstanding and proposed loans.". SEC. 2362. CLARIFICATION OF TELEPHONE LOAN GUARANTEE AU- THORITY. Section 306 (7 U.S.C. 936) is amended by inserting after the first sentence the following new sentence: "The Administrator shall not provide such assistance to any borrower of a telephone loan under this Act unless the borrower specifically applies for such assistance.". CHAPTER 4—AMENDMENTS RELATING TO TITLE IV OF THE RURAL ELECTRIFICATION ACT OF 1936 SEC. 2363. MODIFICATION OF RURAL TELEPHONE BANK BOARD. (a) IN GENERAL. —Section 405 (7 U.S.C. 945) is amended by striking all that precedes subsection (g) and inserting the following: "SEC. 405. BOARD OF DIRECTORS. "(a) IN GENERAL.— The management of the telephone bank, within the limitations prescribed by law, shall be vested in a board of directors (in this title referred to as the 'Telephone Bank Board'). "(b) MEMBERSHIP.—The Telephone Bank Board shall consist of thirteen individuals, as follows: "(1) PRESIDENTIAL APPOINTEES. —The President shall appoint seven individuals to serve on the Telephone Bank Board who shall serve at the pleasure of the President— "(A) five of whom shall be officers or employees of the Department of Agriculture and not officers or employees of the Rural Electrification Administration; and

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