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Code · U.S. Code · Title 7 - AGRICULTURE · CHAPTER 31— RURAL ELECTRIFICATION AND TELEPHONE SERVICE · SUBCHAPTER II— RURAL TELEPHONE SERVICE · § 926

§ 926. Certain rural development investments by qualified telephone borrowers not treated as dividends or distributions

267 words·~1 min read·/usc/title-7/section-926

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(a)In general The Secretary shall not—
(1)treat any amount invested by any qualified telephone borrower for any purpose described in section 2204b(c)(2) of this title (including any investment in, or extension of credit, guarantee, or advance made to, an affiliated company of the borrower, that is used by such company for such a purpose) as a dividend or distribution of capital to the extent that, immediately after such investment, the aggregate of such investments does not exceed ⅓ of the net worth of the borrower; or
(2)require a qualified telephone borrower to obtain the approval of the Secretary in order to make an investment described in paragraph (1).
(b)“Qualified telephone borrower” defined As used in subsection (a), the term “qualified telephone borrower” means a person—
(1)to whom a telephone loan has been made or guaranteed under this chapter; and
(2)whose net worth is at least 20 percent of the total assets of such person.
(May 20, 1936, ch. 432, title II, § 205, as added Pub. L. 101–624, title XXIII, § 2356, Nov. 28, 1990, 104 Stat. 4039; amended Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 115–334, title VI, § 6602(b)(3), Dec. 20, 2018, 132 Stat. 4776.)
Connections12 cite this · traces to 2
7 references not yet in our index
  • May 20, 1936, ch. 432
  • Pub. L. 101–624, title XXIII, § 2356
  • 104 Stat. 4039
  • Pub. L. 103–354, title II, § 235(a)(13)
  • 108 Stat. 3221
  • 132 Stat. 4776
  • Pub. L. 103–354
Citation graph
cites case law
§ 926
Certain rural development investments by qualified telephone borrowers not treated as dividends or distributions
Bills×6
Stat.×3
Stat. Comp.×2
Pub. L.×1
ActMay 20, 1936, ch. 432
Pub. L.Pub. L. 101–624, title XXIII, § 2356
Stat.104 Stat. 4039
Pub. L.Pub. L. 103–354, title II, § 235(a)(13)
Stat.108 Stat. 3221
Cites 9 · showing 7Cited by 12 across 4 sources
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