(2) by striking ‘‘and the furnishing of adequate
telephone service in rural areas’’.
(b) AMENDMENT TO SECTION 3.—Section 3(a) of
such Act (7 U.S.C. 903(a)) is amended by striking ‘‘and
for the purpose of financing the improvement, expansion,
construction, acquisition, and operation of facilities to
render telephone service’’.
(c) AMENDMENTS TO SECTION 11A.—Section 11A of
such Act (7 U.S.C. 911a) is amended—
(1) in subsection (a), by striking ‘‘and tele-
phone’’;
(2) in subsection (c)(1), by striking ‘‘or tele-
phone’’; and
(3) in subsection (c)(2), by striking ‘‘and the
Assistant Administrator for Telephone’’.
(d) AMENDMENT TO SECTION 18.—Section 18 of
such Act (7 U.S.C. 918) is amended by striking ‘‘and the
Governor of the telephone bank’’.
(e) REPEAL OF TITLE II.—Title II of such Act (7
U.S.C. 922–928) is hereby repealed.
(f) AMENDMENTS TO SECTION 301.—Section 301 of
such Act (7 U.S.C. 931) is amended—
(1) in the section heading, by striking ‘‘AND
TELEPHONE’’; and
(2) in subsection (a), in the matter preceding
paragraph (1), by striking ‘‘and Telephone’’.
(g) AMENDMENTS TO SECTION 302.—Section 302 of
such Act (7 U.S.C. 932) is amended—
(1) in subsection (b)—
(A) in paragraph (1), by striking ‘‘4, 5,
and 201’’ and inserting ‘‘4 and 5’’; and
(B) in paragraph (2), by striking ‘‘and
telephone’’; and
(2) by striking subsection (c).
(h) AMENDMENT TO SECTION 305.—Section 305 of
such Act (7 U.S.C. 935) is amended by striking subsection
(d).
(i) AMENDMENTS TO SECTION 306.—Section 306 of
such Act (7 U.S.C. 936) is amended—
(1) by striking ‘‘Rural Telephone Bank,’’; and
(2) by striking the 2nd sentence.
(j) AMENDMENTS TO SECTION 309.—Section 309 of
such Act (7 U.S.C. 939) is amended—
(1) by striking ‘‘(a) IN GENERAL.—’’; and
(2) by striking subsection (b).
(k) AMENDMENTS TO SECTION 313.—Section 313 of
such Act (7 U.S.C. 940c) is amended, in each of sub-
sections (a)(1), (b)(1)(A), and (b)(2)(A), by striking ‘‘and
Telephone’’.
(l) AMENDMENTS TO SECTION 314.—Section 314 of
such Act (7 U.S.C. 940d) is amended—
(1) in the section heading, by striking ‘‘AND
TELEPHONE’’;
(2) in each of subsections (a) and (b)(1), by
striking ‘‘and Telephone’’;
(3) in subsection (d)(3), by striking ‘‘, the
Rural Telephone Bank,’’; and
(4) in subsection (e), by striking paragraph (2).
(m) REPEAL OF TITLE IV.—Title IV of such Act (7
U.S.C. 941–950b) is hereby repealed.
(n) REPEAL OF TITLE V.—Title V of such Act (7
U.S.C. 951) is hereby repealed.
SEC. 4. LOAN PRIORITY.
Title I of the Rural Electrification Act of 1936 (7
U.S.C. 901–918) is amended by adding after the sections
added by sections 1(a) and 2(a) of this Act the following:
‘‘SEC. 21. LOAN PRIORITY.
‘‘Notwithstanding any other provision of law, in mak-
ing loans under this Act during any calendar quarter, the
Administrator shall make such loans to persons otherwise
eligible for such loans who—
‘‘(1) applied for such loans not later than the
end of the immediately preceding calendar quarter;
and
‘‘(2) have the greatest need for such loans, as
determined by the Administrator.’’.
SEC. 5. TRANSITION RULES.
(a) DISPOSITION
OF PAYMENTS
ON TELEPHONE
LOANS MADE BEFORE THIS ACT.—The Administrator of
the Rural Electrification Administration shall return to
the Treasury of the United States such amounts received
by the Rural Electrification Revolving Fund, with respect
to loans made under the Rural Electrification Act of 1936
the authority for the making of which has been terminated
by this Act, as the Administrator deems unnecessary to
meet reserve requirements with respect to such loans.
(b) DISPOSITION OF ASSETS RELATED TO TELE-
PHONE LOANS.—The Administrator of the Rural Elec-
trification Administration shall determine the disposition
of assets held by the Administration with respect to loans
referred to in subsection (a).
(c) RETIREMENT OF STOCK OF THE RURAL TELE-
PHONE BANK.—After the payment or retirement, as the
case may be, first, of all liabilities incurred under title IV
of the Rural Electrification Act of 1936 (as in effect be-
fore the effective date of this Act), second, of all class A
stock of the capital stock of the Rural Telephone Bank
at par, third, of all class B stock of such bank at par,
and fourth, of all class C stock of such bank at par, any
remaining surplus or contingency reserve shall be paid to
the holders of such class A and such class B stock issued
and outstanding before such effective date, pro rata.
SEC. 6. EFFECTIVE DATE.
This Act and the amendments made by this Act shall
take effect on the 1st day of the first Federal fiscal year
that begins 60 or more days after the date of the enact-
ment of this Act.
Æ