REA Project Designation:
TENNESSEE 521-K DEKALB
----------------------
AMENDMENT
Dated as of March 23, 1966
to
TELEPHONE
LOAN CONTRACT
Dated as of October 15, 1951, as amended,
between
DEKALB TELEPHONE COOPERATIVE
and
UNITED STATES OF AMERICA
Identified as form of document presented to and approved
by the board of directors trustees of the above named
corporation at a meeting held August 3, 1966
/s/ Xxxxxxx Xxxx
--------------------------
Secretary of Meeting
UNITED STATES DEPARTMENT OF AGRICULTURE
RURAL ELECTRIFICATION ADMINISTRATION
No. A
-----
AGREEMENT, made as of March 23, 1966, 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 seven
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 and as of June 8, 1964, (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 $276,000, 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 $4,221,000 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 5,604 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.
SECTION 2. Article II of the Loan Contract is amended by adding
thereto a new section numbered and reading as follows:
SEC. 2.8. Prerequisites to Advances on Account of
Additional Loan of $276,000. Notwithstanding anything in
this agreement, the Government shall be under no obligation
to advance any portion of the increase of $276,000 in the
amount of the Loan provided for in the agreement, dated as
of March 23, 1966, made by and between the Borrower and the
Government unless and until the Borrower shall have
submitted evidence, satisfactory to the Administrator, that
it has duly executed, recorded, and filed a supplemental
mortgage in form and substance satisfactory to the
Administrator, providing, for, amount other things, for
controls over the level of general funds.
SEC. 3. Section 2.1(A) of article II of the Loan Contract is amended
to read as follows:
(a) evidence that the Borrower has duly adopted a
tariff which does not include mileage or zone charges for
the lowest grade of services provided in each central office
area and which will provide revenues sufficient to meet all
necessary expenditures, including all interest and principal
payments under the Notes;
SEC. 4. Article II of the Loan Contract is further amended by adding
thereto a new section numbered and reading 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 twenty percent of
its total telephone plant, or would exceed twenty 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 twenty percent of its total telephone plant, or
would exceed twenty 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 Plan in Service", "Telephone Plan 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.
- 2 -
SEC. 5. 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 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
ahs caused this agreement to be duly executed, all as of the day and year
first above written.
DEKALB TELEPHONE COOPERATIVE
by /s/ W. N. Xxxx
President
(Seal)
Attest: /s/ Xxxxxxx Xxxx
Secretary
UNITED STATES OF AMERICA
by
Administrator
of
Rural Electrification Administration
- 3 -
