7 U.S. Code § 926. Certain rural development investments by qualified telephone borrowers not treated as dividends or distributions
(a) In generalThe Secretary shall not—
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
(b) “Qualified telephone borrower” definedAs used in subsection (a), the term “qualified telephone borrower” means a person—
whose net worth is at least 20 percent of the total assets of such person.