02-8429. Municipal Interest Rates for the Second Quarter of 2002

AGENCY:

Rural Utilities Service, USDA.

ACTION:

Notice of municipal interest rates on advances from insured electric loans for the second quarter of 2002.

SUMMARY:

The Rural Utilities Service hereby announces the interest rates for advances on municipal rate loans with interest rate terms beginning during the second calendar quarter of 2002.

DATES:

These interest rates are effective for interest rate terms that commence during the period beginning April 1, 2002, and ending June 30, 2002.

FOR FURTHER INFORMATION CONTACT:

Gail P. Salgado, Management Analyst, Office of the Assistant Administrator, Electric Program, Rural Utilities Service, U.S. Department of Agriculture, Room 4023-S, Stop 1560, 1400 Independence Avenue, SW, Washington, DC 20250-1560. Telephone: [phone]. FAX: [phone]. E-mail: [e-mail].

SUPPLEMENTARY INFORMATION:

The Rural Utilities Service (RUS) hereby announces the interest rates on advances made during the second calendar quarter of 2002 for municipal rate electric loans. RUS regulations at § 1714.4 state that each advance of funds on a municipal rate loan shall bear interest at a single rate for each interest rate term. Pursuant to § 1714.5, the interest rates on these advances are based on indexes published in the “Bond Buyer” for the four weeks prior to the fourth Friday of the last month before the beginning of the quarter. The rate for interest rate terms of 20 years or longer is the average of the 20 year rates published in the Bond Buyer in the four weeks specified in § 1714.5(d). The rate for terms of less than 20 years is the average of the rates published in the Bond Buyer for the same four weeks in the table of “Municipal Market Data—General Obligation Yields” or the successor to this table. No interest rate may exceed the interest rate for Water and Waste Disposal loans.

The table of Municipal Market Data includes only rates for securities maturing in 2002 and at 5 year intervals thereafter. The rates published by RUS reflect the average rates for the years shown in the Municipal Market Data table. Rates for interest rate terms ending in intervening years are a linear interpolation based on the average of the rates published in the Bond Buyer. All rates are adjusted to the nearest one eighth of one percent (0.125 percent) as required under § 1714.5(a). The market interest rate on Water and Waste Disposal loans for this quarter is 5.000 percent.

In accordance with § 1714.5, the interest rates are established as shown in the following table for all interest rate terms that begin at any time during the second calendar quarter of 2002.

Interest rate term ends in (year)	RUS rate (0.000 percent)
2023 or later	5.000
2022	5.000
2021	5.000
2020	5.000
2019	4.875
2018	4.875
2017	4.875
2016	4.750
2015	4.625
2014	4.500
2013	4.375
2012	4.250
2011	4.125
2010	4.000
2009	3.875
2008	3.625
2007	3.500
2006	3.000
2005	2.625
2004	2.125
2003	1.625

Dated: March 6, 2002.

Hilda Gay Legg,

Administrator, Rural Utilities Service.