Page:United States Statutes at Large Volume 85.djvu/60

 30

PUBLIC LAW 92-12-MAY 7, 1971

[85 STAT.

tion proceeds (as defined in section 406(a) of this Act) as may be necessary to provide for investment in the capital stock of the Eural Telephone Bank in accordance with such section 406(a): Provided, That such investment shall be deemed paid in capital of the said bank notwithstanding that funds representing the proceeds from the sale of such stock shall remain in the rural telephone account until required for actual disbursement in cash by the said oank, "SEC. 302. DEPOSIT OF ACCOUNT MONEYS.—Moneys in the rural telehone account shall remain on deposit in the Treasury of the United tates until disbursed.

g

"TITLE IV Rural Telephone Bank

"SEC.

4 0 1. ESTABLISHMENT,

GENERAL

PURPOSES,

AND

STATUS

OF

THE TELEPHONE B A N K. — (a) There is hereby established a body corporate to be known as the Rural Telephone Bank (hereinafter called the telephone bank). "(b) The general purposes of the telephone bank shall be to obtain an adequate supply of supplemental funds to the extent feasible from non-Federal sources, to utilize said funds in the making of loans under secti(m 408 of this title, and to conduct its operations to the extent practicable on a self-sustaining basis. "(c) The telephone bank shall be deemed to be an instrumentality of the United States, and shall, for the purposes of jurisdiction and venue, be deemed a citizen and resident of the District of Columbia. The telephone bank is authorized to make payments to State, territorial, and local governments in lieu of property taxes upon real property and tangible personal property which was subject to State, territorial, and local taxation before acquisition by the telephone bank. Such payment may be in the amounts, at the times, and upon such terms as the telephone bank deems appropriate but the telephone bank shall be guided by the policy of making payments not in excess of the taxes which would have been payable upon such property in the condition in which it was acquired. " SEC. 402. GENERAL POWERS.—To carry out the sijecific powers herein authorized, the telephone bank shall have power to (a) adopt, alter, and use a corporate seal; (b) sue and be sued in its corporate name; (c) make contracts, leases, and cooperative agreements, or enter into other transactions as may be necessary in the conduct of its business, and on such terms as it may deem appropriate; (d) acquire, in any lawful manner, hold, maintain, use, and dispose of property: Provided, That the telephone bank may only acquire property needed in the conduct of its banking operations or pledged or mortgaged to secure loans made hereunder or m temporary operation or maintenance thereof: Provided further, That any such pledged or mortgaged property so acquired shall be disposed of as promptly as is consistent with prudent liquidation practices, but in no event later than five years after such

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