An Act 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, and for other purposes.

(LATEST SUMMARY)

Establishes in the Treasury of the United States the Rural Electrification and Telephone Revolving Fund.

Sets forth the purposes for which the assets of the fund are to be made available.

Authorizes the Administrator of the Rural Electrification Administration to make and issue interim notes to the Secretary of the Treasury for the purpose of obtaining funds necessary for discharging obligations of the fund and for making loans, advances, and authorized expenditures out of the fund.

Directs the Secretary of the Treasury to purchase for resale obligations insured through the fund when offered by the Administrator.

Authorizes the Administrator to make insured loans to the full extent of the assets available in the fund subject only to limitations as to amounts authorized for loans and advances as may be from time to time imposed by the Congress.

States that insured loans shall bear interest at a special rate of two percent, per annum or a standard rate of five percent per annum. Establishes requirements for eligibility for the special rate.

Allows the Administrator to provide financial assistance to borrowers for the 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 as subordinating liens or mortgages in the fund held by the Administrator as owner or as trustee or custodian for purchases of notes from the fund, or by any combination of such guarantee, accommodation, or subordination.