[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]



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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.

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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