In general
The Secretary shall not—
section 2204b(c)(2) of this title treat any amount invested by any qualified telephone borrower for any purpose described in (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
require a qualified telephone borrower to obtain the approval of the Secretary in order to make an investment described in paragraph (1).
“Qualified telephone borrower” defined
As used in subsection (a), the term “qualified telephone borrower” means a person—
to whom a telephone loan has been made or guaranteed under this chapter; and
whose net worth is at least 20 percent of the total assets of such person.
May 20, 1936, ch. 432 Pub. L. 101–624, title XXIII, § 2356104 Stat. 4039 Pub. L. 103–354, title II, § 235(a)(13)108 Stat. 3221 Pub. L. 115–334, title VI, § 6602(b)(3)132 Stat. 4776 (, title II, § 205, as added , , ; amended , , ; , , .)
Editorial Notes
Amendments
Pub. L. 115–334, § 6602(b)(3)(A)2018—Subsec. (a). , struck out “and the Governor of the telephone bank” after “The Secretary” in introductory provisions.
Pub. L. 115–334, § 6602(b)(3)(B)Subsec. (a)(2). , struck out “or the Governor of the telephone bank” after “the Secretary”.
Pub. L. 103–3541994—Subsec. (a). substituted “Secretary” for “Administrator” in two places.