7 U.S. Code § 926 - Certain rural development investments by qualified telephone borrowers not treated as dividends or distributions
(a) In general
The Secretary and the Governor of the telephone bank 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 1/3 of the net worth of the borrower; or
(b) “Qualified telephone borrower” defined
As used in subsection (a) of this section, the term “qualified telephone borrower” means a person—
Source(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.)
1994—Subsec. (a). Pub. L. 103–354substituted “Secretary” for “Administrator” in two places.