--- kind: "section" citation: "7 U.S.C. § 922" title: "7" title_heading: "Agriculture" number: "922" heading: "Loans for telephone service" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/7/922" units: - "Chapter 31 — Rural Electrification and Telephone Service" - "Subchapter II — Rural Telephone Service" --- # §922. Loans for telephone service From such sums as are from time to time made available by the Congress to the [Secretary](/usc/7/913.md?p=5) for such purpose, pursuant to [section 903 of this title](/usc/7/903.md), the [Secretary](/usc/7/913.md?p=5) is authorized and empowered to make loans to [persons](/usc/7/499a.md?p=b-1) now providing or who may hereafter provide [telephone service](/usc/7/924.md?p=a) in [rural areas](/usc/7/913.md?p=3), to public bodies now providing [telephone service](/usc/7/924.md?p=a) in [rural areas](/usc/7/913.md?p=3) and to cooperative, nonprofit, limited dividend, or mutual associations. Except as otherwise provided by this subchapter, such loans shall be made under the same terms and conditions as are provided in [section 904 of this title](/usc/7/904.md), for the purpose of financing the improvement, expansion, construction, acquisition, and operation of telephone lines, facilities, or systems to furnish and improve [telephone service](/usc/7/924.md?p=a) in [rural areas](/usc/7/913.md?p=3): Provided, however, That the [Secretary](/usc/7/913.md?p=5), in making such loans, shall give preference to [persons](/usc/7/499a.md?p=b-1) providing [telephone service](/usc/7/924.md?p=a) in [rural areas](/usc/7/913.md?p=3), to public bodies now providing [telephone service](/usc/7/924.md?p=a) in [rural areas](/usc/7/913.md?p=3), and to cooperative, nonprofit, limited dividend, or mutual associations. The [Secretary](/usc/7/913.md?p=5) in making such loans shall, insofar as possible, obtain assurance that the [telephone service](/usc/7/924.md?p=a) to be furnished or improved thereby will be made available to the widest practical number of rural users. When it is determined by the [Secretary](/usc/7/913.md?p=5) to be necessary in order to furnish or improve [telephone service](/usc/7/924.md?p=a) in [rural areas](/usc/7/913.md?p=3), such loans may be made for the improvement, expansion, construction, acquisition, and operation of telephone lines, facilities, or systems without regard to their geographical location. The [Secretary](/usc/7/913.md?p=5) is further authorized and empowered to make loans for the purpose of refinancing outstanding indebtedness of [persons](/usc/7/499a.md?p=b-1) furnishing [telephone service](/usc/7/924.md?p=a) in [rural areas](/usc/7/913.md?p=3), including indebtedness of recipients on another telecommunications loan made under this chapter. Loans under this section shall not be made unless the [Secretary](/usc/7/913.md?p=5) finds and certifies that in his judgment the [security](/usc/7/24.md?p=b) therefor is reasonably adequate and such loan will be repaid within the time agreed and that no duplication of lines, facilities, or systems, providing reasonably adequate services will result therefrom. ## Source credit (May 20, 1936, ch. 432, title II, § 201, as added Oct. 28, 1949, ch. 776, § 5, 63 Stat. 948; amended Pub. L. 92–12, § 3(b), May 7, 1971, 85 Stat. 37; Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 115–334, title VI, §§ 6211, 6502, 6702, Dec. 20, 2018, 132 Stat. 4744, 4772, 4779.) ## Notes ### Editorial Notes ### Amendments 2018—Pub. L. 115–334, § 6702(2), which directed substitution of “certifies” for “centifies” in sixth sentence, could not be executed because the word “centifies” did not appear. Pub. L. 115–334, § 6702(1), which directed substitution of “widest” for “wildest” in third sentence, could not be executed because the word “wildest” did not appear. Pub. L. 115–334, § 6502, inserted section catchline and substituted “associations.” for “associations: And provided further, That for a period of one year from and after October 28, 1949, applications for loans received by the Secretary from persons who on October 28, 1949, are engaged in the operation of existing telephone service in rural areas shall be considered and acted upon before action is taken upon any application received from any other person for any loan to finance the furnishing or improvement of telephone service to substantially the same subscribers.” in second sentence and “and that no duplication” for “, nor shall such loan be made in any State which now has or may hereafter have a State regulatory body having authority to regulate telephone service and to require certificates of convenience and necessity to the applicant unless such certificate from such agency is first obtained. In a State in which there is no such agency or regulatory body legally authorized to issue such certificates to the applicant, no loan shall be made under this section unless the Secretary shall determine (and set forth his reasons therefor in writing) that no duplication” in last sentence. Pub. L. 115–334, § 6211, substituted “furnishing telephone service in rural areas, including indebtedness of recipients on another telecommunications loan made under this chapter.” for “furnishing telephone service in rural areas: Provided, That such refinancing shall be determined by the Secretary to be necessary in order to furnish and improve telephone service in rural areas: And provided further, That such refinancing shall constitute not more than 40 per centum of any loan made under this subchapter.” 1994—Pub. L. 103–354 substituted “Secretary” for “Administrator” wherever appearing. 1971—Pub. L. 92–12 inserted “, to public bodies now providing telephone service in rural areas” after “areas” in first sentence and after “areas” in first proviso of second sentence. ### Statutory Notes and Related Subsidiaries ### Effective Date of 1971 Amendment Amendment by Pub. L. 92–12 effective May 7, 1971, see section 7 of Pub. L. 92–12, set out as an Effective Date note under section 931 of this title.