REA Project Designation:
TENNESSEE 521-L DEKALB
AMENDMENT
Dated as of July 1, 1968
to
TELEPHONE
LOAN CONTRACT
Dated as of October 15, 1951, as amended,
between
DEKALB TELEPHONE COOPERATIVE
and
UNITED STATES OF AMERICA
UNITED STATES DEPARTMENT OF AGRICULTURE
RURAL ELECTRIFICATION ADMINISTRATION
No. 1
-------
AGREEMENT, made as of July 1, 1968, pursuant to the Rural
Electrification Act of 1936, as amended (7 U. S. C. 901 et seq.)
between DEKALB TELEPHONE COOPERATIVE (hereinafter called the
"Borrower"), a corporation existing under the laws of the State of
Tennessee, and UNITED STATES OF AMERICA (hereinafter called the
"Government"), acting through the Administrator of the Rural
Electrification Administration.
WHEREAS, the Government and the Borrower have heretofore entered into
a certain telephone loan contract, dated as of October 15, 1951, and eight
certain amendments thereto, dated, respectively, as of March 9, 1953, as of
February 15, 1954, as of November 15, 1954, as of November 15, 1957, as of
November 9, 1959, as of June 20, 1961, as of June 8, 1964 and as of March 23,
1966, (said telephone loan contract, as so amended, being hereinafter called
the "Loan Contract"), and intend by this agreement to amend the Loan Contract
by increasing the aggregate amount of the loans therein provided for by an
amount not in excess of $1,850,000, and in certain other respects;
NOW, THEREFORE, for and in consideration of the mutual agreements
herein contained, the Government and the Borrower agree as follows:
SECTION 1. Section 1.1 of article I of the Loan Contract is amended
to read as follows:
SECTION 1.1 Amount and Purpose. For the purpose of
furnishing telephone service in rural areas, the Government shall
lend and the Borrower shall borrow an amount not in excess of
$6,071,000 which, together with the sum of $57,983 of equity funds
to be deposited by the Borrower in the "Special Construction Account"
hereinafter defined and provided for in section 2.4, shall be used
to finance, pursuant to the provisions of the Act, the acquisition,
construction and operation of telephone lines and facilities
(hereinafter called the "Project") to serve approximately 6,538
subscribers and to be located in the Counties of Xxxxxx, Dekalb,
Xxxxxxxxxx, Xxxxx and Xxxxxx, and in counties contiguous thereto, all
in the State of Tennessee.
SEC. 2. Section 2.9 of article II of the Loan Contract is amended
to read as follows:
SEC. 2.9. Relation of General Funds Level to Advances. The
Borrower covenants and agrees that it will not, without the approval
of the Administrator, submit a requisition for the advance of any
funds on account of the Loan, nor use any funds advanced on account
of the Loan to reimburse its general funds, at any time or times when
the amount of its general funds either exceeds fifteen percent of its
total telephone plant, or would exceed fifteen percent of its total
telephone plant as a result of the intended use of such advance to
reimburse its general funds. Notwithstanding anything contained in
this agreement, the Government shall not be obligated at any time or
times to make an advance on account of the Loan if the amount of the
Borrower's general funds at such time or times either exceeds fifteen
percent of its total telephone plant, or would exceed fifteen percent
of its total telephone plant as a result of the intended use of such
advance to reimburse the Borrower's general funds. As used in this
section: (a) the term "general funds" means the sum of the following
accounts: "Investments in Affiliated Companies", "Advances to
Affiliated Companies", "Other Investments", "Miscellaneous Physical
Property", "Sinking Funds", "Cash" (except for cash in the "Cash -
REA Construction Fund - Trustee Account"), "Special Cash Deposits",
"Working Funds", and "Temporary Cash Investments", and (b) the term
"total telephone plant" means the sum of the following accounts:
"Telephone Plant in Service", "Telephone Plant Under Construction",
"Property Held for Future Telephone Use", "Telephone Plant
Acquisition Adjustment", and "Telephone Plant Adjustment". Titles
of accounts used in the foregoing definitions shall have the meanings
prescribed for them by the Federal Communications Commission in its
prevailing uniform system of accounts for Class A telephone
companies. These titles and definitions shall also apply to accounts
of the Borrower which have substantially the same meanings as those
referred to in such uniform system of accounts regardless of the
account title or the system of accounts actually used by the
Borrower.
SEC. 3. Article II of the Loan Contract is further amended by adding
thereto two new sections numbered and reading as follows:
SEC. 2.10. Prerequisites to Advances on Account of
Additional Loan of $1,850,000. Notwithstanding anything in this
agreement, the Government shall be under no obligation to advance any
portion of the increase of $1,850,000 in the amount of the Loan
provided for in the agreement, dated as of July 12, 1968,
(hereinafter called the "L-Loan"), made by and between the Borrower
and the Government unless and until the Borrower shall have submitted
evidence, satisfactory to the Administrator that the Board of
Directors has adopted a revised tariff or rate schedule relating to
the five exchanges to be upgraded with L-Loan funds, which tariff or
rate schedule shall be satisfactory to the Administrator.
SEC. 2.11. Construction Schedule. Notwithstanding anything
contained in this agreement, the Government shall not be obligated
to advance to the Borrower any funds on account of the Loan (other
than funds hitherto approved by the Administrator for advances)
except in accordance with a schedule covering construction, and the
use of the Borrower's general funds and Loan funds therefor, which
shall have been submitted by the Borrower and approved in writing by
the Administrator. Such schedule shall reflect the policy of
scheduling construction in conformance with current national
objectives, and may, with the written approval of the Administrator,
be amended from time to time. To the extent that such schedule, as
it may be amended, fixes the time for final advance of funds on
account of the Loan beyond the period of time specified in section
2.7 of article II hereof, the period of time specified in said
section shall be accordingly extended. Advances of Loan funds to
reimburse general funds used for construction shall be made only
after the Administrator has determined that the Borrower's financial
and operating condition require such reimbursement. The authority
granted to the Government or the Administrator to withhold advances
of Loan funds pursuant to the section shall terminate on a date three
years after the date of the agreement between the Government and the
Borrower which initially incorporated the foregoing provisions, or
on any earlier termination date designated by the Administrator if,
in his discretion, he determines such earlier termination date is
warranted.
SEC. 4. This agreement may be simultaneously executed and
delivered in two or more counterparts, each of which so executed and
delivered shall be deemed to be an original, and all shall constitute
but one and the same instrument.
IN WITNESS WHEREOF the Borrower has caused this agreement to be
signed in its corporate name and its corporate seal to be hereunto affixed
and attested by its officers thereunto duly authorized, and the Government
has caused this agreement to be duly executed, all as of the day and year
first above written.
DEKALB TELEPHONE COOPERATIVE
(Seal) by /s/ Xxx X. Amonnett
Attest: /s/ Xxxxxxx Xxxx President
Secretary
UNITED STATES OF AMERICA
by /s/
Acting Administrator
of
Rural Electrification Administration
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