REA Project Designations
TENNESSEE 521-A
TENNESSEE 521-B
AMENDMENT
Dated as of March 9, 1953
to
TELEPHONE LOAN CONTRACT
Dated as of October 15, 1951
between
DEKALB TELEPHONE COOPERATIVE
and
UNITED STATES OF AMERICA
DEPARTMENT OF AGRICULTURE
RURAL ELECTRIFICATION ADMINISTRATION
No. 2
AGREEMENT, made as of March 9, 1953, 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 called
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 (hereinafter called the "Loan Contract"), dated as of
October 15, 1951, providing for the lending by the Government and the
borrowing by the Borrower of an amount not in excess of $180,000 to finance,
partially, the construction and operation of a telephone system in rural
areas to bring telephone service to approximately 530 subscribers, and intend
by this agreement to amend the Loan Contract by increasing the amount of the
loan therein provided for by an amount not in excess of $172,000, by
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
$352,000 which, together with the sum of $10,365, 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 provision of the Act, the construction and operation
of telephone lines and facilities (hereinafter called the "Project")
to serve approximately 691 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. The fourth sentence of section 2.4 of Article II of the Loan
Contract is amended to read as follows:
The Borrower shall also deposit in the Special Construction Account
on the same terms and conditions, subject to the same requirements
regarding requisitions and for the same purposes as funds advanced
on account of the Loan, the sum of $10,365 (hereinafter called the
"equity funds").
SEC. 3. Section 4.20 of article IV of the Loan Contract is amended
to read as follows:
SEC. 4.20 Supervisor: Appointment and Powers. If the
construction of the Project, or any part thereof, shall not proceed
in accordance with the terms hereof, or if, in the opinion of the
Administrator, action is necessary to protect the Government's security
security for the Loan or is essential to achieve the objectives for which
the Loan is made, the Administrator may appoint, as the representative
of the Government, a supervisor (hereinafter called the "Supervisor") for
the Project or other property of the Borrower necessary for the
construction or operation of the Project and notify the Borrower of such
appointment and the duration thereof. The Supervisor shall take such
steps as he deems necessary to assure construction or operation of the
Project in accordance with the terms hereof, or such portion or portions
thereof as may be designated by the Administrator, or to assure
performance of any obligations which the Borrower may be obligated to
perform pursuant to the provisions of section 4.6 hereof, or to preserve
the security of the Loan, and shall have power to operate the Project
and other property of the Borrower necessary to the operation of the
Project, and do all things reasonably incident to the exercise of the
powers herein granted, including, without limitation, directing the
conservation of any funds of the Borrower, the collection of all debts
due it, directing the payment of all expenses of the Borrower from any
of its funds, termination of the employment of such employees of the
Borrower as he shall determine upon and the employment of such persons,
on such terms and conditions as he may designate, as he shall deem
necessary to assist him in carry out his functions.
The salaries, fees, disbursements and expenses of the Supervisor and
of any employee appointed by him shall be paid by the Borrower,
provided, however, that the salaries, fees, disbursements and
expenses of any Supervisor who shall be an employee of the Government
and of any assistants who shall be employees of the Government shall
not be payable by the Borrower unless and to the extent that the
Administrator, upon written notification to the Borrower, shall so
require. So long as the appointment of the Supervisor shall be in
effect, all checks, drafts, and orders drawn on any bank account
maintained by the Borrower, shall be countersigned by the Supervisor,
except that, if the proper officers or employees of the Borrower
shall refuse to sign any such check, draft, or order, the Supervisor
shall have full power and authority to sign such check, draft or
order for the Borrower without the requirement of any other signature
thereon, if the Supervisor shall certify to the bank upon which such
check, draft or order is drawn that the same is required to carry out
the obligations of the Borrower hereunder. The Borrower hereby
constitutes the Administrator its agent for the purpose of notifying
any bank in which any account of the Borrower shall be maintained of
the appointment of a Supervisor and of the provisions hereunder with
respect thereto, and agrees that such notice shall include a
direction to any such bank with respect to the signing or
countersigning of the checks, drafts or orders drawn on any such
account as in this section provided. The Borrower shall comply with
all reasonable instructions of the Supervisor incident to carrying
out the obligations of the Borrower hereunder of the performance of
the functions of the Supervisor.
SEC. 4. Section 4.22 of article IV of the Loan Contract is amended
to read as follows:
SEC. 4.22. Equity Funds. The Borrower shall submit to the
Administrator, with each requisition submitted by the Borrower
pursuant to section 2.2 hereof, evidence that it has collected and
deposited in the Special Construction Account equity payments
averaging $15.00 for each of the subscribers for whom telephone
service has been improved or furnished until a total of $10,365 in
equity funds on behalf of a total of 691 subscribers has been
collected and deposited.
SEC. 5. Section 6.2 of article VI of the Loan Contract is amended
to read as follows:
SEC. 6.2 False Claims Statute. The Borrower and each of
the officers signing a certain agreement, dated as of November 21,
1952, made between the Borrower and the Government, respectively
acknowledge that they have received copies of sections 286, 287, 641,
1001 and 1361 of Xxxxx 00, Xxxxxx Xxxxxx Code, Crimes and Criminal
Procedure.
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
(Seal) President
Attest: UNITED STATES OF AMERICA
by
/s/ M.D. Xxxxxxxx
----------------------
Secretary Administrator
of
Rural Electrification Administration
