Page:United States Statutes at Large Volume 85.djvu/66

 36

PUBLIC LAW 92-12-MAY 7, 1971

[85 STAT.

" (5) No loan shall be made in any State which now has or may hereafter have a State regulatory body having authority to regulate telphone service and to require certificates of convenience and necessity to the applicant unless such certificate from such agency is first obtained. I n a State in which there is no such agency or regulatory body legally authorized to issue such certificates to the applicant, no loan shall be made under this section unless the Gov•?. emor of the telephone bank shall determine (and set forth his rea^ sons therefor in writing) that no duplication of lines, facilities, or systems, providing reasonably adequate services will result therefrom. Definitions. "(6) As uscd iu this section, the term telephone service shall have the meaning prescribed for this term in section 203(a) of this 76 Stat. 1140, Act, and the term telephone lines, facilitieSj or systems shall mean 7 USC 924. lines, facilities, or systems used in the rendition of such telephone service. " (7) No borrower of funds under section 408 of this Act shall, without approval of the Governor of the telephone bank under rules established by the Telephone Bank Board, sell or dispose of its property, rights, or franchises, acquired under the provisions of this Act, until any loan obtained from the telephone bank, including all interest and charges, shall have been repaid. Payment sched" i^) The Governor of the telephone bank is authorized under rules uie, adjustment, established by the Telephone Bank Board to adjust, on an amortized basis, the schedule of payments of interest or principal of loans made under this section upon his determination that with such readjustment there is reasonable assurance of repayment: Provided, however, That no adjustment shall extend the period of such loans beyond fifty years. " SEC. 409. TELEPHONE B A N K RECEIPTS.—Any receipts from the activities of the telephone bank shall be available for all obligations and expenditures of the telephone bank. " SEC. 410. CONVERSION OF OWNERSHIP, CONTROL AND OPERATION OF TELEPHONE B A N K. — (a) Whenever fifty-one per centum of the

maximum amount of class A stock issued to the United States and outstanding at any time after June 30, 1985, has been fully redeemed and retired pursuant to section 406(c) of this title— " (1) the powers and authority of the Governor of the telephone bank granted to the Administrator of the Rural Electrification Administration by this title IV shall vest in the Telephone Bank Board, and may be exercised and performed through the Governor of the telephone bank, to be selected by the TeTephone Bank Board, and through such other employees as the Telephone Bank Board shall designate; " (2) the five members of the Telephone Bank Board designated by the President pursuant to section 405(b) shall cease to be members, and the number of Board members shall be accordingly reduced to eight unless other provision is thereafter made in the bylaws of the telephone bank; "(3) the telephone bank shall cease to be an agency of the United States, but shall continue in existence in perpetuity as an instrumentality of the United States and as a banking corporation with all of the powers and limitations conferred or imposed by this title IV except such as shall have lapsed pursuant to the provisions of this title. "(b) When all class A stock has been fully redeemed and retired, loans made by the telephone bank shall not continue to be subject to the restrictions prescribed in the provisos to section 408(a)(2). Congressional "(c) Cougress rescrves the right to review the continued operations review. of the telephone bank after all class A stock has been fully redeemed and retired.

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