Rural Telephone Bank

On May 7, 1971, the Rural Telephone Bank (Bank) was established by amendment to the RE Act as a source of supplemental financing for telecommunications companies and cooperatives eligible to borrow under the RE Act's telephone loan program. After years of discussion regarding the possible privatization of the Bank, in February 2005, the Board of Directors unanimously approved resolutions to liquidate and dissolve the Bank on August 4, 2005. The liquidation and dissolution process is now largely complete. Stock redemption agreements were sent to over 92 percent of shareholders on January 10, 2006. The Government's Class A stock was redeemed on April 10, 2006; redemption payments to Class B and C shareholders began on April 11, 2006 and were completed by September 30, 2006. The final liquidation payments were made to Class A and B shareholders at the time of liquidation on November 13, 2007. The only action still to be taken is the completion of a final audit. [https://www.usda.gov/rus/telecom/rtb/index_rtb. htm]