Sec. 88.7. (a) As used in this section, “financial assistance” means:

(1) a loan or loan guarantee; or

Terms Used In Indiana Code 8-1-2-88.7

  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Property: includes personal and real property. See Indiana Code 1-1-4-5
  • Rate: as used in this chapter , means every individual or joint rate, fare, toll, charge, rental, or other compensation of any utility or any two (2) or more such individual or joint rates, fares, tolls, charges, rentals, or other compensation of any utility or any schedule or tariff thereof, but nothing in this subsection shall give the commission any control, jurisdiction, or authority over the rate charged by a municipally owned utility except as in this chapter expressly provided. See Indiana Code 8-1-2-1
  • United States: includes the District of Columbia and the commonwealths, possessions, states in free association with the United States, and the territories. See Indiana Code 1-1-4-5
(2) a lien accommodation provided to secure a loan made by another lender;

that is made by the Rural Electrification Administration of the United States Department of Agriculture (REA) or by the Rural Telephone Bank.

     (b) As used in this section, “REA borrower” means a telephone company subject to this chapter that is the recipient of financial assistance.

     (c) An REA borrower shall charge rates sufficient to enable the REA borrower to:

(1) satisfy its reasonable expenses and obligations; and

(2) earn a rate of return on the property sufficient to cover the REA borrower’s cost of capital, including any financial assistance and the interest thereon.

     (d) So long as there remains any unpaid portion of any financial assistance associated with the property of an REA borrower, the rates of the REA borrower shall be set at a level sufficient to repay the financial assistance regardless of any change in the status of the property, including the full or partial retirement of the property or any other change in the status of the property.

As added by P.L.74-1991, SEC.1. Amended by P.L.27-2006, SEC.5.