A bill to amend sections 306 and 308 of the Rural Electrification Act of 1936, as amended.

(LATEST SUMMARY)

Provides, under the Rural Electrification Act of 1936, relating to rural telephone accounts, that any security, representing beneficial ownership in a note or block of notes guaranteed under this title, issued by a private entity shall be exempt from laws administered by the Securities and Exchange Commission, except those sections specified in this Act, dealing with fraudulent interstate transactions, jurisdiction of offenses and suits, and penalties, respectively.

Provides that the Administrator shall require that: (1) the issuer place such notes in the custody of an institution chartered by a Federal or State agency to act as trustee and (2) the issuer provide such periodic reports of sales as the Administrator deems necessary.

States that evidences of indebtedness, issued by such a legally organized lending agency, shall at all times be secured by: (1) a principal amount of, and interest which has accrued on, guaranteed loans, (2) an amount of cash, or (3) a principal amount of, and interest which has accrued on, any securities of a class exempted by the Securities Act of 1933, as amended, from the provisions of such Act. Provides that any combination of the foregoing, in an aggregate amount which shall at least equal the principal amount of, and interest which has accrued on, said evidences of indebtedness, shall be exempt from laws administered by the Securities and Exchange Commission, except those sections specified in this Act.