REA Project Designation
TENNESSEE 521-C
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AMENDMENT
Dated as of February 15, 1954
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 of the above
named corporation at a meeting held May 6, 1954
/s/ X. Xxxxxxxx
-------------------------
Secretary of Meeting
DEPARTMENT OF AGRICULTURE
RURAL ELECTRIFICATION ADMINISTRATION
No. A
AGREEMENT, made as of February 15, 1954, pursuant to the
Rural Electrification Act of 1936, as amended (7 U.S.C. 901
et seq.) (hereinafter called the "Act"), 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 call
the "Government"), acting through the Administrator of the
Rural Electrification Administration (hereinafter called the
"Administrator").
WHEREAS, the Government and the Borrower have entered into a certain
telephone loan contract dated as of October 15, 1951, and a certain amendment
thereto dated as of March 9, 1953 (said telephone loan contract as so
amended, being hereinafter called the "Loan Contract"), providing for the
lending by the Government and the borrowing by the Borrower of an amount not
in excess of $352,000, to finance, partially, the construction and operation
of a telephone system in rural areas to bring telephone service to
approximately 691 subscribers, and intend by this agreement to amend the Loan
Contract by increasing the aggregate amount and intend by this agreement to
amend the Loan Contract by increasing the aggregate amount of the loan
therein provided for by an amount not in excess of $106,000, by increasing
the number of subscribers to be served by approximately 230 additional
subscribers, 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 $458,000 which, together with the sum
of $18,255, 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 921 subscribers and to be
located in the Counties of Xxxxxx, DeKalb, Xxxxx and Xxxxxx, and in counties
contiguous thereto, all in the State of Tennessee.
SEC. 2. Section 2.1 of article II of the Loan Contract is amended
by adding thereto a new subsection lettered and reading as follows:
(C) Prerequisites to Advances on Account of Additional Loan of
$106,000. The Government shall be under no obligation to advance any portion
of the increase of $106,000 in the amount of the Loan provided for in an
agreement, dated as of February 15, 1954, made by and between the Borrower
and the Government (said increase in the amount of the loan being hereinafter
called the "C Loan") unless and until the Borrower shall have submitted
evidence, satisfactory to the Administrator, that:
(1) it has adopted a revised rate schedule
satisfactory to the Administrator, which will provide
revenues sufficient to meet all necessary expenditures,
including all interest and principal payments under the
notes;
(2) it has obtained all franchises required by law
from incorporated municipalities in which the Project is or
will be located;
(3) it has obtained commitments or contracts, in
form and substance satisfactory to the Administrator,
covering all necessary toll traffic, operator assistance and
extended area services, to be furnished by connecting
companies, as well as all necessary joint use of facilities
with other companies as may be necessary for the
construction or proper operation of the Project;
(4) it has amended its bylaws, in form and
substance satisfactory to the Administrator;
(5) it has complied with all laws and regulations
applicable to the issuance or sale of membership
certificates in the Borrower and of equity certificates,
such certificates to be in form and substance satisfactory
to the Administrator;
(6) it has entered into a binding written
agreement, in form and substance satisfactory to the
Administrator, for the acquisition by the Borrower of all
telephone lines and facilities (excluding real estate) used
or useful in the telephone business operated as the
Gordonsville Home Telephone Company by X. X. Xxxxxx and Xxxx
Xxxxxx Xxxxxx, his wife, of Gordonsville, Tennessee;
(7) it has a total of 160 subscribers for service
from the facilities to be constructed with C Loan funds,
including subscribers from the Gordonsville Home Telephone
company facilities to be acquired, and held orders or signed
applicants; and
(8) it has obtained the sum of $1600 in equity
payments, on behalf of subscribers to receive service as a
result of the C Loan, in addition to the $7,970 of equity
funds shown, on the Borrower's Financial Requirement
Statement numbered 9, dated November 27, 1953, to have been
collected from or on behalf of subscribers to service from
facilities financed with funds from loans made prior to the
C Loan, and has deposited said additional equity funds in
the Special Construction Account provided for in section 2.4
hereof.
The first advance of funds on account of the C Loan, in an amount not in
excess of $4,000, shall be made by the Government (upon compliance by the
Borrower with all conditions of this agreement precedent to the advance of C
Loan funds) only for the purpose of enabling the Borrower to consummate the
acquisition of the telephone lines and facilities described in subsection (C)
(6) of this section 2.1. The Government shall be under no obligation to make
any further advances on account of the C Loan until the Borrower shall have
submitted evidence, satisfactory in form and substance to the Administrator,
that: (1) such acquisition has been duly consummated in accordance with the
terms and conditions of the sales agreement, previously approved by the
Administrator; and (2) the Borrower has obtained a total of $3,945 in equity
payments on behalf of subscribers to receive service as a result of the C
Loan, including the $1600 initial equity deposit required under section 2.1
(C) (8) hereof, and deposited said additional equity funds in the Special
Construction Account provided for in section 2.4 hereof.
SEC. 3. Section 2.4 of article II of the Loan Contract is amended
by changing the amount "$10,365" appearing in the fourth sentence thereof, to
$18,255" and by adding at the end of said section 2.4 a sentence reading as
follows:
The Borrower shall expend each advance on account of the
Loan or equity funds only for such of the purposes specified
in the statement of purposes accompanying the requisition
for such advance or equity funds as shall have been approved
by the Administrator.
SEC. 4. Article IV of the Loan Contract is amended by deleting
therefrom section 4.19 (relating to "Signs and Pole Marking") and by
renumbering the remaining sections of article IV of the Loan Contract
accordingly.
SEC. 5. Section 4.21 (formerly section 4.22) of article IV of the
Loan Contract is amended to read as follows:
SEC. 4.21. Equity Funds. The Borrower shall submit to the
Administrator, with each requisition submitted by the Borrower pursuant
to section 2.2 hereof, evidence that the Borrower has collected and
deposited in the Special Construction Account, equity funds in an
amount equal to the product of $15.00 times the number of subscribers
for whom telephone service has been furnished or improved as a result
of funds from loans
made prior to the C Loan, plus the product of $12.00 times
the number of acquired subscribers for whom telephone
service has been improved as a result of the C Loan, plus
the product of $50.00 times the number of new subscribers
for whom telephone service has been furnished initially as
a result of the C Loan, until a total of $18,255.00,
including the initial equity funds previously deposited by
the Borrower pursuant to the provisions of section 2.1
hereof, has been collected and deposited.
SEC. 6. 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 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
by: /s/ Xxxx Xxxxx
________________________________
President
(Seal)
Attest: /s/ M.D. Xxxxxxxx
________________________
Secretary
UNITED STATES OF AMERICA
by: ________________________________
Administrator
of
Rural Electrification Administration
