Determination of the 1994 Fiscal Year Interest Rates on Rural Telephone Bank Loans

Zusammenfassung

In accordance with 7 CFR 1610.10, the Rural Telephone Bank fiscal year 1994 cost of money rates have been established as follows: 6.15% and 6.40% for advances from the liquidating account and financing account, respectively (fiscal year is the period beginning October 1 and ending September 30). Except for loans approved from October 1, 1987 through December 21, 1987 where borrowers elected to remain at interest rates set at loan approval, all loan advances made during fiscal year 1994 under bank loans approved prior to fiscal year 1992 shall bear interest at the rate of 6.15% (the liquidating account rate). All loan advances made during fiscal year 1994 under bank loans approved during or after fiscal year 1992 shall bear interest at the rate of 6.40% (the financing account rate). The calculation of the Bank's cost of money rates for fiscal year 1994 for the liquidating account and the financing account are provided in Tables 1a and 1b. Since the calculated rates are greater than the minimum rate (5.00%) allowed under 7 U.S.C. 948(b)(3)(A), the cost of money rates for the liquidating account and financing account are set at 6.15% and 6.40%, respectively. The methodology required t