[Federal Register Volume 61, Number 43 (Monday, March 4, 1996)]
[Notices]
[Page 8236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4872]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Telephone Bank
Determination of the 1995 Fiscal Year Interest Rates on Rural
Telephone Bank Loans
AGENCY: Rural Telephone Bank.
ACTION: Technical correction to Notice of 1995 fiscal year interest
rates determination.
-----------------------------------------------------------------------
SUMMARY: The Rural Telephone Bank (Bank) hereby announces a technical
amendment to a footnote regarding the Bank's calculation of the
interest rate to be applied to loan advances made from the financing
account during fiscal year 1995.
FOR FURTHER INFORMATION CONTACT:
Barbara L. Eddy, Deputy Assistant Governor, Rural Telephone Bank, room
4056, South Building, U.S. Department of Agriculture, Washington, DC
20250, telephone number (202) 720-9556.
SUPPLEMENTARY INFORMATION: In accordance with 7 CFR 1610.10, on
November 9, 1995, the Bank published its fiscal year 1995 interest
rates for advances on liquidating and financing account loans (60 FR
56561). Interest rates for advances on liquidating and financing
account loans are based on the Bank's cost of money. the cost of money
rate methodology is the same for both accounts. It develops a weighted
average rate for the Bank's cost of money considering total fiscal year
loan advances; the excess of fiscal year loan advances over amounts
received in the fiscal year from the issuances of Class A, B, and C
stocks, debentures and other obligations; and the costs to the Bank of
obtaining funds from these sources.
The interest rate for advances during fiscal year 1995 on financing
account loans was established as shown in Table 1b, Financing Account,
Cost of Money Rate, of the aforementioned notice (60 FR 56563). One
component of the calculation to determine the cost of money rate for
fiscal year 1995 was the issuance of debentures and other obligations.
As indicated in footnote number 2 to Table 1b, obligations incurred
by the Bank, that is, funds borrowed for fiscal year 1995 financing
account loan advances, were in excess of its borrowers' demands by
approximately $90.4 million. In conformance with the established
practice of the Bank, these excess funds would therefore be carried
over to make advances in the next fiscal year (fiscal year 1996).
Subsequent to the Bank establishing its costs of money rate for
fiscal year 1995, the practice of carrying over funds from one fiscal
year to another was discontinued. The $90.4 million in excess funds
will therefore not be used to make advances in fiscal year 1996 as
previously indicated in footnote number 2 to Table 1b (60 FR 56563).
The Bank's fiscal year 1995 cost of money rates previously
established at 6.04% and 6.88% for advances from the liquidating
account and financing account, respectively, remain unchanged (60 FR
56561).
Dated: February 26, 1996
Wally Beyer,
Governor, Rural Telephone Bank.
[FR Doc. 96-4872 Filed 3-1-96; 8:45 am]
BILLING CODE 3410-15-M
