Page:United States Statutes at Large Volume 107 Part 2.djvu/409

 PUBLIC LAW 103-129—NOV. 1, 1993 107 STAT. 1361 "(C) FINALITY OF APPROVAL. — A telecommunications modernization plan approved under subparagraph (A) may not subsequently be disapproved. Notwithstanding paragraphs (IXAXiii) and (2)(A)(iii), and section 408(b)(4)(C), the Administrator and the Governor of the telephone bank may msJce a loan to a borrower serving a State that does not have a telecommimication modernization plan approved by the Administrator if the loan is made less than 1 year after the Administrator has adopted final regulations implementing this paragraph.". (2) RURAL TELEPHONE BANK LOAN PROGRAM.— Section 408 of such Act (7 U.S.C. 948) is amended— (A) in subsection (a), by striking ", (2)" and all that follows through "408 of this Act," and inserting ", (2) for the acquisition, purchase, and installation of telephone lines, svstems, and facilities (other than buildings used primarily for administrative purposes, vehicles not used primarily in construction, and customer premise equipment) related to the furnishing, improvement, or extension of rural telecommunications service,"; (B) in subsection ih)— (i) by striking paragraph (4) and inserting the following new paragraph: "(4) The Governor of the telephone bank may make a loan under this section only to an applicant for the loan who meets the following requirements: "(A) The average number of subscribers per mile of line in the service area of the applicant is not more than 15, or the applicant is capable of producing net income or margins before interest of not less than 100 percent (but not more than 500 percent) of the interest requirements on all of the outstanding and proposed loans of the applicant. "(B) The Administrator has approved, under section 305(d)(3), a telecommunications modernization plan for the State in which the applicant is located and, if the plan was developed by telepnone borrowers under title III, the applicant is a participant in the plan."; (ii) in paragraph (8)— (I) by inserting "(A)" after "(8)"; (II) by striking "if such prepayment is not made later than September 30, 1988" and inserting "except for any prepayment penalty provided for in a loan agreement entered into before the date of enactment of the Rural Electrification Loan Restructuring Act of 1993"; and (III) by adding at the end the following new subparagraph: "(B) If a borrower prepays part or all of a loan made under this section, then, notwithstanding section 407(b), the (jrovemor of the telephone bank shall— "(i) use the full amount of the prepayment to repay obligations of the telephone bank issued pursuant to section 407(b) before October 1, 1991, to the extent any such obligations are outstanding; and "(ii) in repaying the obligations, first repay the advances bearing the greatest rate of interest."; and

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