A bill to amend the Rural Electrification Act of 1936, as amended, to establish a Rural Electrification and Telephone Revolving Fund to provide adequate funds for rural electric and telephone systems through insured and guaranteed loans at interest rates which will allow them to achieve the objectives of the Act.

[AI summary unavailable — showing source text] Establishes the Rural Electrification and Telephone Revolving Fund, consisting of: (1) all notes, liens, mortgages, and property delivered to the Administrator of the Rural Electrification Administration pursuant to loans heretofore or hereafter made under the Rural Electrification Act; (2) undisbursed balances of electric and telephone loans; (3) appropriations for interest subsidies and losses which may hereafter be made by the Congress; (4) moneys borrowed from the Secretary of the Treasury; and (5) shares of the capital stock of the Rural Telephone Bank. Specifies that the assets of the Fund shall be available only for the following purposes: (1) loans which can be insured under this Act; (2) payment of principal on outstanding loans from the Secretary of the Treasury for electrification and telephone purposes; (3) payment of amounts to which the holder of notes is entitled on insured loans, or on any defaulted installment; (4) purchase of notes; (5) payment in compliance with contracts of guarantee; (6) payment of taxes, insurance, prior liens, and other specified expenses; and (7) payment of the purchase price and any costs of acquiring property under the Act. Authorizes the …