Page:United States Statutes at Large Volume 63 Part 1.djvu/987

 63 STAT.] 81ST CONG. , IsT SESS.-CH. 776-OCT. 28, 1949 949 areas: Provided, however, That the Administrator, in making such Preference. loans, shall give preference to persons providing telephone service in rural areas, and to cooperative, nonprofit, limited dividend, or mutual associations: And provided further, That for a period of one year Applications for from and after the effective date of this title applications for loans received by the Administrator from persons who on the effective date of this title are engaged in the operation of existing telephone service in rural areas shall be considered and acted upon before action is taken upon any application received from any other person for any loan to finance the furnishing or improvement of telephone service to substan- tially the same subscribers. The Administrator in making such loans shall, insofar as possible, obtain assurance that the telephone service to be furnished or improved thereby will be made available to the widest practical number of rural users. When it is determined by the Admin- istrator to be necessary in order to furnish or improve telephone service in rural areas, such loans may be made for the improvement, expansion, construction, acquisition, and operation of telephone lines, facilities, or systems without regard to their geographical location. The Administrator is further authorized and empowered to make Refinancingindebt- loans for the purpose of refinancing outstanding indebtedness of persons furnishing telephone service in rural areas: Provided, That such refinancing shall be determined by the Administrator to be necessary in order to furnish and improve telephone service in rural areas: And provided further, That such refinancing shall constitute not more than 40 per centum of any loan made under this title. Loans Adequate security. under this section shall not be made unless the Administrator finds and certifies that in his judgment the security therefor is reasonably adequate and such loan will be repaid within the time agreed, nor shall such loan be made in any State which now has or may hereafter have a State regulatory body having authority to regulate telephone service and to require certificates of convenience and necessity to the applicant unless such certificate from such agency is first obtained. In a State in which there is no such agency or regulatory body legally Restriction. authorized to issue such certificates to the applicant, no loan shall be made under this section unless the Administrator shall determine (and set forth his reasons therefor in writing) that no duplication of lines, facilities, or systems, providing reasonably adequate services will result therefrom. "SEC. 202. Nothing contained in this Act shall be construed to deprive any State commission, board, or other agency of jurisdiction, under any State law, now or hereafter effective, to regulate telephone service which is not subject to regulation by the Federal Communica- tions Commission, under the Communications Act of 1934, including 4s stat. 1064. the rates for such service. "SEC. 203. (a) As used in this title, the term 'telephone service' 'tAn p. 1 shall be deemed to mean any communication service whereby voice "Telephone serv- communication through the use of electricity between the trans- mitting and receiving apparatus, is the principal intended use thereof, and shall include all telephone lines, facilities, or systems used in the rendition of such service; but shall not be deemed to mean tele- graph services or facilities, or radio broadcasting services or facilities within the meaning of section 3 (o) of the Communications Act of 4s tat. 1066. 1934, as amended. 47 .S.C. 153 (0). "(b) As used in this title, the term 'rural area' shall be deemed "Rural area." to mean any area of the United States not included within the boundaries of any incorporated or unincorporated city, village, or borough having a population in excess of one thousand five hundred inhabitants." Approved October 28, 1949.
 * eq.: upp. i § 151

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