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.

Summary

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 Administrator to make and issue interim notes to the Secretary of the Treasury to obtain funds necessary for discharging obligations of the Fund and for making loan advances, and authorized expenditures from the Fund. Authorizes the Secretary to purchase for resale obligations insured through the Fund when offered by the Administrator. Authorizes the Administrator to make insured loans under this Act and at specified interest rates (2 percent as special rate, 5 percent as standard rate) to the full extent of the assets available in the Fund, subject only to limitations imposed by Congress. Permits the Administrator to provide financial assistance to borrowers for purposes provided in the Rural Electrification Act, by guaranteeing loans, in the full amount thereof, made by the Rural Telephone Bank, National Rural Utilities Cooperative Finance Corporation, and any other legally organized lending agency, or by accommodating or subordinating liens or mortgages in the Fund held by the Administrator as owner or as trustee or custodian for purchasers of notes from the Fund. Directs the Administrator, at the request of the borrower, to refinance with loans which may be insured under the Act, any loans made for rural electric and telephone facilities under the Consolidated Farm and Rural Development Act.

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Documents

2 official files

• Reported to House with amendment(s)

  summary · EN · 27 March 1973

  Open at official source

• Introduced in House

  summary · EN · 15 March 1973

  Open at official source

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