A substitute amendment. The amendment raises the bill's variable interest formula for REA direct loans; requires REA to pay back both the principal and the interest on CBO's in annual installments; caps the revolving fund loan program at its current level; eliminates the current requirement that REA provide at least 70 percent of the capital needs of rural coops and phone companies; and sets the hardship loan level at half the variable interest rate. It requires REA to begin paying back to the Treasury the 7.9 billion dollars made available to the revolving fund in 1973. It eliminates provisions that allow refinancing of CBO's and guaranteed loans, and deletes requirements that REA give up its first claim of assets in case of default.