[Federal Register Volume 66, Number 183 (Thursday, September 20, 2001)]
[Notices]
[Pages 48416-48417]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-23502]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Rural Telephone Bank


Amendment to Bylaws

AGENCY: Rural Telephone Bank, USDA.

ACTION: Notice of revised bylaws.

-----------------------------------------------------------------------

SUMMARY: The Board of Directors of the Rural Telephone Bank (Bank) 
adopted an amendment to the bylaws of the Bank on August 17, 2001. The 
bylaw amendment defines the terms ``eligible'' and ``controlled'' with 
respect to the purchase of Class C stock.

EFFECTIVE DATE: This action was effective August 17, 2001.

FOR FURTHER INFORMATION CONTACT: Roberta D. Purcell, Assistant 
Governor, Rural Telephone Bank, (202) 720-9554.

SUPPLEMENTARY INFORMATION: Bylaw section 2.2, paragraph (c) is revised 
and redesignated as paragraphs (c) and (d), and existing paragraph (d) 
is redesignated as (e) as follows:

Article II--Capital Stock and Special Fund Equivalents

Sec. 2.2  Rights, Powers, Privileges and Preferences of Each Class of 
Stock

    (c) Class C stock shall have a par value of one thousand dollars 
($1,000) per share, shall be issued only at par, shall be held only by 
borrowers or by corporations and public bodies eligible to borrow under 
section 408 of the Act, or by organizations controlled by such 
borrowers, corporations and public

[[Page 48417]]

bodies, and shall be voting stock. A corporation or public body is 
considered eligible to borrow if it is engaged in activities that the 
Bank determines could be financed under section 408 of the Act. An 
organization is considered controlled if (1) a majority of the voting 
stock or other controlling authority in the organization is held by 
borrowers or by corporations and public bodies eligible to borrow under 
section 408 of the Act and (2) such borrowers, corporations, and public 
bodies are not prevented by any agreement or other restriction from 
exercising such controlling authority as they may desire.
    (d) At such times and in such amounts as the Board may designate, 
dividends may be declared and paid to holders of Class C stock, but 
only from income of the Bank. Until all Class A stock is retired, the 
annual rate of any such dividend shall not exceed the current average 
rate payable on the bonds, debentures, notes and other evidences of 
indebtedness issued by the Bank (hereinafter collectively called 
``telephone debentures''). No dividend on Class C stock shall be paid 
at any time when any portion of the cumulative 2 percent return on 
Class A stock required by section 406(c) of the Act remains unpaid. 
Prior to dissolution or liquidation of the Bank, Class C stock may be 
redeemed and retired only after all shares of Class A stock shall have 
been redeemed and retired. Upon dissolution or liquidation of the Bank, 
holders of Class C stock shall be entitled to retirement of their stock 
at par after payment of all liabilities of the Bank and after 
retirement of all Class A and Class B stock at par, but shall not be 
entitled to share in any remaining surpluses or contingency reserves, 
as provided in section 411 of the Act. Class C stock shall not be 
transferable, absolutely or by way of collateral, except to a borrower, 
or a corporation or public body eligible to borrow under section 408 of 
the Act, or an organization controlled by such borrowers, corporations, 
or public bodies.
    (e) No holder of Class B or Class C stock shall be entitled to more 
than one vote, regardless of the number and class or classes of shares 
held, nor shall Class B and Class C stockholders, regardless of their 
number, which are owned or controlled by the same person, group of 
persons, firm, association, or corporation be entitled to more than one 
vote.

    Dated: August 13, 2001.
Gary J. Morgan,
Acting Governor, Rural Telephone Bank.
[FR Doc. 01-23502 Filed 9-19-01; 8:45 am]
BILLING CODE 3410-15-P