Rural Telecommunications Improvements Act of 1989

Rural Telecommunications Improvements Act of 1989 - Title I: Amendments Relating to Title I of the 1936 Act - Amends the Rural Electrification Act of 1936 (the Act) to include the balance of all rescinded loans and obligations among the unexpended or unobligated funds which may be carried over for loans by the Administrator of the Rural Electrification Administration (REA) (the Administrator).

Prohibits the Administrator and the Governor of the Rural Telephone Bank (the Governor) from: (1) denying or reducing any loan or loan advance based on a borrower's level of general funds; or (2) making any loan or grant, or providing any guarantee, for electric service to any borrower of a telephone loan, or for telephone service to any borrower of an electric loan, unless the borrower has obtained the consent of the State regulatory authority and the loan or grant will not be used to duplicate any lines, facilities, or systems.

Title II: Amendments Relating to Title II of the 1936 Act - Prohibits the Administrator or the Governor from making or guaranteeing a loan, or making a grant, for telephone purposes, if this would result in the duplication of lines, facilities, or systems that provide reasonably adequate service.

Prohibits the Administrator and the Governor from requiring an applicant, as a condition of a telephone loan, to increase: (1) rates charged to customers or subscribers; or (2) the ratio of net income or margins before interest to the interest requirements on all the applicant's outstanding and proposed loans.

Prohibits the Administrator from treating as dividends or distributions of capital certain rural development investments by qualified telephone borrowers.

Requires the Administrator and the Governor to: (1) publish policy standards for the telephone loan programs; (2) use only depreciation rates authorized by the State regulatory body in evaluating loan feasibility; and (3) make loans for all authorized purposes.

Prohibits the Administrator and the Governor from: (1) rescinding certain telephone loans without the borrower's consent; (2) regulating the order or sequence of advances of funds to any borrower under any combination of approved telephone loans from specified entities; or (3) denying a loan or advance to, or taking adverse action against, a telephone loan borrower for any reason not based on a published policy standard.

Requires the Administrator to report to specified congressional committees on why certain loan applications have not been processed promptly.

Title III: Amendments Relating to Title III of the 1936 Act - Directs the Administrator to maintain separate electric and telephone accounts within the Rural Electrification and Telephone Revolving Fund (the Fund).

Provides that borrowers are to determine the amortization period for insured telephone loans.

Sets forth a tier requirement for the interest rates of insured telephone loans.

Provides for full use of REA insured loan authority.

Prohibits the Administrator from providing guarantee assistance to any borrower of a telephone loan unless the borrower specifically applies for guarantee assistance.

Title IV: Amendments Relating to Title IV of the 1936 Act - Revises provisions for the Rural Telephone Bank (RTB) Board of Directors.

Revises provisions relating to: (1) RTB capitalization; (2) pro rata purchase of RTB stock by RTB borrowers; (3) authority to set RTB loan levels; and (4) the overcharge on RTB loans made before FY 1988.

Provides for determination of the amortization period for RTB loans by borrowers, within certain maximum limits.

Provides for full use of RTB loan authority.

Title V: Effective Date - Sets forth the effective date of this Act.