97-16428. Municipal Interest Rates for the Third Quarter of 1997

[Federal Register Volume 62, Number 121 (Tuesday, June 24, 1997)]
[Notices]
[Pages 34044-34045]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16428]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Municipal Interest Rates for the Third Quarter of 1997

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of municipal interest rates on advances from insured 
electric loans for the third quarter of 1997.

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SUMMARY: The Rural Utilities Service hereby announces the interest 
rates for advances on municipal rate loans with interest rate terms 
beginning during the third calendar quarter of 1997.
DATES: These interest rates are effective for interest rate terms that 
commence during the period beginning July 1, 1997, and ending September 
30, 1997.

FOR FURTHER INFORMATION CONTACT: Carolyn Dotson, Loan Funds Control 
Assistant, U.S. Department of Agriculture, Rural Utilities Service, 
Room 2234-S, Stop 1524, 1400 Independence Avenue, SW, Washington, DC 
20250-1500. 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 third calendar 
quarter of 1997 for municipal rate electric loans. RUS regulations at 7 
CFR 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 7 CFR 1714.5, the interest rates on these advances are 
based on indexes published in the ``Bond Buyer'' for the four weeks 
prior to the first 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 7 CFR 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.
    In the past, both the published Municipal Market Data table and the 
table published by RUS have included a rate for each year up to 20 
years. At the end of May 1997, however, the Bond Buyer changed the 
table of ``Municipal Market Data--General Obligation Yields.'' Instead 
of publishing a rate for each year, as was done in the past, the table 
now includes only rates for securities maturing in 1998 and at 5 year 
intervals thereafter.
    Therefore, beginning with this Notice, the rates published by RUS 
will reflect the average rates for the years shown in the Municipal 
Market Data table in the Bond Buyer. Rates for interest rate terms 
ending in intervening years will be a linear interpolation based on the 
average of the rates published in the Bond Buyer. All rates will be 
adjusted to the nearest one eighth of one percent (0.125 percent) as 
required under 7 CFR

[[Page 34045]]

1714.5(a). The method for issuing rates for interest rate terms of 20 
years or longer is unchanged. The market interest rate on Water and 
Waste Disposal loans for this quarter is 5.500 percent.
    In accordance with 7 CFR 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 third calendar quarter of 1997.

------------------------------------------------------------------------
                                                        RUS rate  (0.000
          Interest rate term ends in (year)                 percent)    
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2018.................................................              5.500
2017.................................................              5.500
2016.................................................              5.500
2015.................................................              5.500
2014.................................................              5.375
2013.................................................              5.375
2012.................................................              5.375
2011.................................................              5.250
2010.................................................              5.250
2009.................................................              5.125
2008.................................................              5.000
2007.................................................              5.000
2006.................................................              4.875
2005.................................................              4.875
2004.................................................              4.750
2003.................................................              4.750
2002.................................................              4.625
2001.................................................              4.500
2000.................................................              4.250
1999.................................................              4.000
1998.................................................              3.875
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    Dated: June 17, 1997.
Wally Beyer,
Administrator, Rural Utilities Service.
[FR Doc. 97-16428 Filed 6-23-97; 8:45 am]
BILLING CODE 3410-15-P