A bill to amend the Rural Electrification Act of 1936 to permit the prepayment of Federal financing bank loans made to rural electrification and telephone systems, and for other purposes.

[AI summary unavailable — showing source text] Amends the Rural Electrification Act of 1936 to permit Rural Electrification Administration borrowers to prepay Federal Financing Bank loans without penalties if: (1) private capital is used to replace such loans; and (2) any savings will be used to avoid future rate increases, passed on to customers, or used to improve the borrower's financial strength.…