REA Project Designation
TENNESSEE 521-D
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AMENDMENT
Dated as of November 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 November 29, 1954.
/s/ M. D. Xxxxxxxx
----------------------------
Secretary of Meeting
UNITED STATES DEPARTMENT OF AGRICULTURE
RURAL ELECTRIFICATION ADMINISTRATION
No. A
AGREEMENT, made as of November 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 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 dated as of October 15, 1951, and two certain
amendments thereto, dated as of March 9, 1953 and as of February 15, 1954
(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 $458,000, to finance,
partially, the construction and operation of a telephone system in rural
areas to bring telephone service to approximately 921, subscribers 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
$461,000, by increasing the number of subscribers to be served by
approximately 1,040 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 $919,000 which, together
with the sum of $57,983 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 acquisition,
construction and operation of telephone lines and facilities
(hereinafter called the "Project") to serve approximately
1,961 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:
(D) Prerequisites to Advances on Account of Additional Loan
of $461,000. The Government shall be under no obligation to
advance any portion of the increase of $461,000 in the
amount of the Loan provided for in the agreement, dated as
of November 15, 1954, made by and between the Borrower and
the Government (said increase in the amount of the loan
between hereinafter called the "D Loan") unless and until
the Borrower shall have submitted evidence, satisfactory to
the Administrator, that:
(1) it has obtained all franchises required by law from
any municipality or municipalities in which the Project
is or will be located;
(2) it has submitted a Certificate of Deposit of Equity Cash
indicating that it has obtained the sum of $6,500 in initial
equity funds, including the $6,240 already deposited on
behalf of the D Loan subscribers, in addition to the $10,640
of equity funds already deposition on behalf of subscribers
to service from facilities financed with funds from loans
made prior to the D Loan, and has deposited such additional
equity funds in the Special Construction Account provided for
in section 2.4 hereof;
(3) it has used approximately $5,500 of equity funds so deposited
to obtain good and sufficient title to the existing telephone
facilities (excluding real estate and subscriber-owned
telephone instruments) owned by the Auburntown Telephone
Company and by the Xxxxxxx
Home Telephone Company and located in the vicinities of
Auburntown, Tennessee, and Xxxxxxx, Tennessee, respectively,
under terms and conditions satisfactory to the Administrator,
and in compliance with all applicable laws and regulations; and
(4) it has submitted 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 and subscriber-owned
telephone instruments) used or useful in the telephone business
operated as the Smithville Telephone Company by the estate
of X. X. Xxxxx, deceased, located at and in the vicinity of
Smithville, Tennessee.
The first advance of funds on account of the D Loan, in an amount not in
excess of $23,500, shall be made by the Government (upon compliance by the
Borrower with all conditions of this agreement precedent to the advance of D
Loan funds) only for the purpose of enabling the Borrower (by the use of
equity funds in the amount of $1,000 to supplement such first advance) to
consummate the acquisition of the telephone lines and facilities described in
subsection (D) (4) of this section 2.1. The Government shall be under no
obligation to make any further advances on account of the D Loan until the
Borrower shall have submitted evidence, satisfactory in form and substance to
the Administrator, that such acquisition has been duly consummated in
accordance with the terms and conditions of the sales agreement, previously
approved by the Administrator. Thereafter, advances of loan funds will be
restricted to amounts required for purposes other than the purchase or
construction of central office equipment, outside plant, station equipment,
land and buildings, until the Borrower has collected and deposited at least
$19,864, in equity funds on behalf of the D Loan subscribers, including the
initial equity funds of $6,500, which were required to have been deposited
previously on behalf of the D Loan subscribers.
SEC. 3. Section 2.4 of article II of the Loan Contract is amended
by changing the amount "$18,225" appearing in the fourth sentence thereof, to
$57,983 (hereinafter called the "equity funds").
SEC. 4. Section 4.2 of article IV of the Loan Contract is amended
by adding thereto a new section numbered and reading as follows:
(g) a contract or contracts for the joint use of facilities
of other companies as may be necessary for the construction
or proper operation of the Project.
SEC 5. Section 4.21 (formerly 4.22) of article IV of the Loan
Contract is amended to read as follows:
Section 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 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 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 times the number of new subscribers for whom
telephone service has been furnished initially as a result of the C
Loan, plus the product of $24 times the number of acquired
subscribers for whom telephone service has been improved as a result
of the D Loan, plus the product of $50 times the number of new
subscribers for whom telephone service has been furnished initially
as a result of the D Loan, until a total of $57,983, 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
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President
(Seal)
Attest: /s/ M. D. Xxxxxxxx
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Secretary
UNITED STATES OF AMERICA
by /s/
Acting Administrator
of
Rural Electrification Administration
