Page:United States Statutes at Large Volume 87.djvu/102

 70

PUBLIC LAW 93-32-MAY 11, 1973

[87 STAT.

" SEC. 307. OTHER FIXANCING.—When it appears to the Adminis-

trator that the loan applicant is able to obtain a loan for part of his credit needs from a responsible cooperative or other credit source at reasonable rates and terms consistent with the loan applicant's ability to pay and the achievement of the Act's objectives, he may request the loan applicant to apply for and accept such a loan concurrently with a loan insured at the standard rate, subject, however, to full use being made by the Administrator of the funds made available hereunder for such insured loans under this title. " SEC. 308. F U L L F A I T H AND CREDIT OF THE L N I T E D STATES.—Any

contract of insurance or guarantee executed by the Administrator under this title shall be an obligation supported by the full faith and credit of the United States and incontestable except for fraud or misrepresentation of which the holder has actual knowledge, •'SEC. 300. LOAN TERMS AND CONDITIONS.—Loans made from or insured through the fund shall be for the same purposes and on the same terms and conditions as are provided for loans in titles I and II A/Q ^*^Q'A^^^' of this Act except as otherwise provided in sections 303 to 308 7 USC 901, 921. inclusive. Ante, p. 67.

" SEC. 3 1 0. REFINANCING OF R u R A L DEVELOPMENT ACT LoANS.

At

the request of the borrower, the Administrator is authorized {.nd directed to refinance with loans which will be insured under this Act Ante, p. 68. .^^ (]jg interest rates provided in section 305 any loans made for rural electric and telephone facilities under any provision of the Consoli86 Stat. 657 dated Farm and Rural Development Act." 1921 7 USC SEC. 3. Section 3(f) of the Rural Electrification Act of 1936, as note. Repeal amended, is repealed. 903. 7 USC SEC. 4. Section 405 of the Rural Electrification Act of 1936, as 85 Stat. 32. amended, is further amended by striking subsection (e) in its entirety 7 USC 945. and by inserting in lieu thereof a new subsection (e), as follows: "(e) Thereafter, the cooperative-type entities and organizations holding class B and class C stock, voting as a separate class, shall elect three directors to represent their class by a majority vote of the stockholders voting in such class; and the commercial-type entities and organizations holding class B and class C stock, voting as a separate class, shall elect three directors to represent their class by a majority vote of the stockholders voting in such class. Limited proxy voting may be permitted, as authorized by the bylaws of the telephone bank. Cumulative voting shall not be permitted." SEC. 5. The second sentence of section 406(a) of the Rural Electrifi7 USC 946. cation Act of 1936, as amended, is further amended by striking "from net collection proceeds in the rural telephone account created under title III of this Act'' immediately after the word "appropriated". SEC. 6. Subsection (a) of section 407 of the Rural Electrification Act 86^statVgo"*' ^^ 1936, as amended, is amended by striking out "eight" in the secojid 7 USC 947. sentence and inserting in lieu thereof "twenty", and by striking out all of the third sentence. SEC. 7. Section 407 of the Rural Electrification Act of 1936, as amended, is amended by adding a new subsection (c) as follows: U.S. budget "/(.) Purchases and resales by the Secretary of the Treasury as totals, exclusion. authorized in subsection (b) oi this section shall not be included m the totals of the budget of the United States Government and shall be exempt from any general limitation imposed by statute on expenditures and net lending (budget outlays) of the United States." SEC. 8. Subsection (a) of section 408 of the Rural Electrification 7 USC 948. Act of 1936, as amended, is amended (a) by inserting the words "or

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