Determination of the 2005 Fiscal Year Interest Rates on Rural Telephone Bank Loans, 47165-47168 [06-6970]
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Federal Register / Vol. 71, No. 158 / Wednesday, August 16, 2006 / Notices
USDA Rural Development with
additional authorities to waive certain
program requirements and resources to
address the damage caused by the Gulf
Coast hurricanes. Section 2103 of title II
of the Emergency Supplemental
Appropriations Act for Defense, the
Global War on Terror, and Hurricane
Recovery, 2006 extended the expiration
date of these waiver authorities under
the Act for an additional 18 months and
provided a total amount of $169,253,000
in CF Direct Loan and Grant funds for
CF projects.
Accordingly, the matching funds
requirement for the CF Grant program
will be waived for assistance provided
under this Notice. In addition, the
median household income requirements
and the grant limits will also be waived
for the purpose of this Notice.
I. General Provisions
A. Designated Disaster Area
For the purposes of this Notice, the
designated disaster area shall be those
Presidentially-declared areas in the
states of Alabama, Florida, Louisiana,
Mississippi, North Carolina, and Texas
in accordance with the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act, 42 U.S.C. 5121 et seq.
B. Limitation of Grant Amounts
The Act enables the Secretary of
Agriculture to make grants under the CF
Grant program without regard to any
grant amount limitation. Rural
Development has determined that it will
review and make awards under this
NOFA as applications are received.
Applications will be reviewed,
approved, and obligated in the State
Rural Development Office.
C. Contacts for Additional Information
For questions about USDA Rural
Development’s programs and for
application assistance, please contact
your USDA Rural Development State
Office. The contact information for your
State Office can be found at: https://
www.rurdev.usda.gov. You can also
reach your State Office by calling (202)
720–4323 and pressing ‘‘1’’.
jlentini on PROD1PC65 with NOTICES
D. Programs Referenced in This Notice
Are Subject to Applicable Civil Rights
Laws
These laws include the Equal Credit
Opportunity Act, Title VI of the Civil
Rights Act of 1964, Title VIII of the Civil
Rights Act of 1968, as amended in 1988,
Section 504 of the Rehabilitation Act of
1973 and the Age Discrimination Act of
1975.
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20:24 Aug 15, 2006
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II. Assistance Available Through This
Notice
Direct Loan and Grant Program
1. Description of Assistance
Section 105 of the Act enables USDA
Rural Development to make Community
Facilities Direct Loan and Grants in
designated disaster areas. CF Grants can
be made without regard to graduated
funding or matching fund requirements.
2. Eligibility Criteria
Public entities such as municipalities,
counties, and special-purpose districts,
as well as non-profit corporations and
tribal governments in designated Rural
disaster areas with a population of
20,000 or less are eligible to apply.
3. Priority
Administrator’s points may be
awarded for geographic distribution of
funds and for projects with pre-existing
hurricane or tornado damage which
were subsequently affected by
hurricanes of the 2005 season.
4. Applicable Statutory or Regulatory
Authority
Consolidated Farm and Rural
Development Act, Section 306 (7 U.S.C.
1926(a)(1) and (19)); and, to the extent
not waived by this Notice, 7 CFR, Part
3570, Subpart B, Community Facilities
Grant Program, and 7 CFR Part 1942,
Subpart A, Community Facilities Direct
Loan Program.
III. Emergency Declaration
Consistent with Proclamation 7925
issued by President Bush, the USDA
Rural Development Mission Area has
determined that it would be
impracticable, unnecessary, and
contrary to public interest to delay the
effective date of this Notice for any
reason. The USDA Rural Development
Agencies need to act promptly on
hurricane related needs in the
designated disaster areas.
IV. Non-Discrimination Statement
The U.S. Department of Agriculture
(USDA) prohibits discrimination in all
its programs and activities on the basis
of race, color, national origin, age,
disability, and where applicable, sex,
marital status, familial status, parental
status, religion, sexual orientation,
genetic information, political beliefs,
reprisal, or because all or part of an
individual’s income is derived from any
public assistance program. (Not all
prohibited bases apply to all programs.)
Persons with disabilities who require
alternative means for communication of
program information (Braille, large
print, audiotape, etc.) should contact
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47165
USDA’s TARGET Center at (202) 720–
2600 (voice and TDD). To file a
complaint of discrimination, write to
USDA, Director, Office of Civil Rights,
1400 Independence Avenue, SW.,
Washington, DC 20250–9410, or call
(800) 795–3272 (voice), or (202) 720–
6382 (TDD). ‘‘USDA is an equal
opportunity provider, employer, and
lender’’.
Dated: August 2, 2006.
Russell T. Davis,
Administrator, Rural Housing Service.
[FR Doc. E6–13432 Filed 8–15–06; 8:45 am]
BILLING CODE 3410–XV–P
DEPARTMENT OF AGRICULTURE
Rural Telephone Bank
Determination of the 2005 Fiscal Year
Interest Rates on Rural Telephone
Bank Loans
Rural Telephone Bank, USDA.
Notice of 2005 fiscal year
interest rates determination.
AGENCY:
ACTION:
SUMMARY: In accordance with 7 CFR
1610.10, the Rural Telephone Bank
(Bank) fiscal year 2005 cost of money
rates have been established as follows:
6.18% and 5.00% for advances from the
liquidating account and financing
account, respectively (fiscal year is the
period beginning October 1 and ending
September 30).
All loan advances made during fiscal
year 2005 under Bank loans approved in
fiscal years 1988 through 1991 shall
bear interest at the rate of 6.18% (the
liquidating account rate). All loan
advances made during fiscal year 2005
under Bank loans approved during or
after fiscal year 1992 shall bear interest
at the rate of 5.00% (the financing
account rate).
The calculation of the Bank’s cost of
money rates for fiscal year 2005 for the
liquidating account and the financing
account are provided in Tables 1 and 2.
Since the calculated rates are greater
than or equal to the minimum rate
(5.00%) allowed under 7 U.S.C.
938(b)(3)(A), the cost of money rates for
the liquidating account and financing
account are set at 6.18% and 5.00%,
respectively. The methodology required
to calculate the cost of money rates is
established in 7 CFR 1610.10(c).
FOR FURTHER INFORMATION CONTACT:
Jonathan P. Claffey, Deputy Assistant
Governor, Rural Telephone Bank, STOP
1590—Room 5151, 1400 Independence
Avenue, SW., Washington, DC 20250–
1590. Telephone: (202) 720–9556.
SUPPLEMENTARY INFORMATION: The
Federal Credit Reform Act of 1990 (2
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47166
Federal Register / Vol. 71, No. 158 / Wednesday, August 16, 2006 / Notices
U.S.C. 661a, et seq.) implemented a
system to reform the budgetary
accounting and management of Federal
credit programs. Bank loans approved
on or after October 1, 1991, are
accounted for in a different manner than
Bank loans approved prior to fiscal year
1992. As a result, the Bank must
calculate two cost of money rates: (1)
The cost of money rate for advances
made from the liquidating account
(advances made during fiscal year 2005
on loans approved prior to October 1,
1991) and (2) the cost of money rate for
advances made from the financing
account (advances made during fiscal
year 2005 on loans approved on or after
October 1, 1991).
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
issuance of Class A, B, and C stock,
debentures and other obligations; and
the costs to the Bank of obtaining funds.
During fiscal year 2005, the Bank was
authorized to pay the following
dividends: The dividend on Class A
stock as 2.00% as established in 7
U.S.C. 946(c); no dividends were
payable on Class B stock in accordance
with 7 U.S.C. 946(d); and the dividend
on Class C stock was established by the
Bank at 5.74%.
Dissolution of the Bank
At its quarterly meeting on August 4,
2005, the Board of Directors (the
‘‘Board’’) approved a resolution to
dissolve the Bank. On November 10,
2005, the liquidation and dissolution
process was initiated with the signing of
the 2006 Agriculture Appropriations bill
by President Bush, which contained a
provision lifting the restriction on the
retirement of more than 5 percent of the
Class A stock held by the Government.
In accordance with the Board’s
resolution and the terms of the Loan
Transfer Agreement between the Bank
and the Government, dated August 4,
2005, the Bank’s liquidating account
loan portfolio was transferred to the
Government on October 1, 2005. As a
result of that transfer, there will be no
more advances of liquidating account
loan funds. Therefore, this is the last
notice that will report an interest rate
for liquidating account loan advances.
The dissolution of the Bank will not
affect future advances of financing
account loan funds. Requests for
financing account advances will
continue to be processed by employees
of USDA Rural Development’s
Telecommunications Program, just as
they were while the Bank remained in
operation. The terms and conditions of
the financing account loans will not
change, nor will the method for
determining the interest rates, including
the determination of the cost of money
rates after the end of the fiscal year. The
only significant change to the financing
account advances is that effective
October 1, 2005, no Class B stock in the
Bank will be purchased with a financing
account loan advance.
Sources and Costs of Funds—
Liquidating Account
In accordance with 7 U.S.C. 946(a),
the Bank did not issue Class A stock in
fiscal year 2005. There were no net
issuances of Class B stock because the
rescissions of loan funds advanced for
Class B stock exceeded the amount of
issuances. The amount received by the
Bank in fiscal year 2005 from the
issuance of Class C stock was $8,048.
The Bank did not issue debentures or
any other obligations related to the
liquidating account in fiscal year 2005.
Consequently, no cost was incurred
related to the issuance of debentures
subject to 7 U.S.C. 948(b)(3)(D).
The excess of fiscal year 2005 loan
advances from the liquidating account
over amounts received from issuance of
stocks, debentures, and other
obligations amounted to $794,953. The
cost associated with this excess is the
historic cost of money rate as defined in
7 U.S.C. 948(b)(3)(D)(v). The calculation
of the Bank’s historic cost of money rate
for advances from the liquidating
account is also provided in Table 1. The
methodology required to perform this
calculation is described in 7 CFR
1610.10(c). The cost of the money rates
for fiscal years 1974 through 1987 are
defined in 7 U.S.C. 948(b) and are listed
in 7 CFR 1610.10(c) and Table 1 herein.
Sources and Costs of Funds—Financing
Account
In accordance with 7 U.S.C. 946(a),
the Bank did not issue Class A stock in
fiscal year 2005. Advances for the
purchase of Class B stock and cash
purchases for Class B stock were
$4,570,841. There were rescissions of
loan funds advanced for Class B stock
in the amount of $8,967; therefore, the
amount received by the Bank from the
issuance of Class B stock, per 7 CFR
1610.10(c), was $4,561,874. The Bank
did not receive any amounts in fiscal
year 2005 from the issuance of Class C
Stock.
During fiscal year 2005, issuance of
debentures or any other obligations
related to advances from the financing
account were $91,416,689 at an interest
rate of 5.250%.
The excess of fiscal year 2005 loan
advances from the financing account
over amounts received from issuance of
stocks, debentures, and other
obligations amounted to $8,967. The
cost associated with this excess is the
historic cost of money rate as defined in
7 U.S.C. 948(b)(3)(D)(v). The Bank’s cost
of money rate for advances from the
financial account is provided in Table 2.
The methodology required to perform
this calculation is described in 7 CFR
1610.10(c).
Dated: August 11, 2006.
James M. Andrew,
Governor, Rural Telephone Bank.
RURAL TELEPHONE BANK COST OF MONEY RATE—LIQUDATING ACCOUNT
(a)
Amount
($)
Issuance of Class A Stock ..............................................................................................
Issuance of Class B Stock ..............................................................................................
Issuance of Class C Stock ..............................................................................................
Issuance of Debentures and Other Obligations ..............................................................
Excess of Total Advances Over Issuances .....................................................................
jlentini on PROD1PC65 with NOTICES
FY 2005
source of bank funds
....................
....................
8,048
....................
794,953
2.00
0.00
5.74
0.00
6.19
....................
....................
462
....................
49,194
0.0000
0.0000
0.0575
0.0000
6.1263
Total FY 2005 Advances ...................................................................................
Calculated cost of money rate = .......................................................................
Minimum rate allowable = .................................................................................
803,001
....................
....................
....................
....................
....................
....................
6.18
5.00
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(b)
Cost
(%)
(c)
(a)×(b)
($)
(c)/Advances
(%)
47167
Federal Register / Vol. 71, No. 158 / Wednesday, August 16, 2006 / Notices
RURAL TELEPHONE BANK HISTORICAL COST OF MONEY RATE—LIQUIDATING ACCOUNT
(a)
Cost of
money
(%)
Fiscal year
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
5.01
5.85
5.33
5.00
5.87
5.93
8.10
9.46
8.39
6.99
6.55
5.00
5.00
5.00
5.00
5.00
5.00
5.43
6.14
6.05
6.15
6.04
6.05
5.98
5.96
6.01
6.01
5.95
6.51
6.05
6.18
Total advances ......................................................................................
(b)
advances
($)
(c)
(a)×(b)
($)
111,022,574
130,663,197
99,915,066
80,907,425
142,297,190
130,540,067
199,944,235
148,599,372
112,232,127
93,402,836
90,450,549
72,583,394
71,582,383
51,974,938
119,488,367
97,046,947
107,694,991
163,143,075
84,940,822
84,605,366
54,530,897
35,967,133
30,965,187
32,602,587
20,673,798
17,796,518
10,436,622
6,638,107
1,864,500
604,800
880,504
5,562,231
7,643,797
5,325,473
4,045,371
8,352,845
7,741,026
16,195,483
14,057,501
9,416,275
6,528,858
5,924,511
3,629,170
3,579,119
2,598,747
5,974,418
4,852,347
5,384,750
3,858,669
5,215,366
5,118,625
3,353,650
2,172,415
1,873,394
1,949,635
1,232,158
1,069,571
627,241
394,967
121,379
36,590
54,415
(c)/Total
Advances
(%)
0.231
0.318
0.221
0.168
0.347
0.322
0.673
0.584
0.391
0.271
0.246
0.151
0.149
0.108
0.248
0.202
0.224
0.368
0.217
0.213
0.139
0.090
0.078
0.081
0.051
0.044
0.026
0.016
0.005
0.002
0.002
2,405,995,574
Cost of money .......................................................................................
6.19
RURAL TELEPHONE BANK COST OF MONEY RATE—FINANCING ACCOUNT
FY 2005
source of bank funds
(a)
Amount
($)
(b)
Cost
(%)
(c)
(a)×(b)
($)
(c)/Advances
(%)
Issuance of Class A Stock ..............................................................................................
Issuance of Class B Stock ..............................................................................................
Issuance of Class C Stock ..............................................................................................
Issuance of Debentures and Other Obligations* .............................................................
Excess of Total Advances Over Issuances .....................................................................
....................
4,561,874
....................
91,416,689
8,967
2.00
0.00
5.740
5.250
5.956
....................
....................
....................
4,799,659
534
0.0000
0.0000
0.0000
5.0003
0.0006
Total FY 2005 Advances ...................................................................................
Calculated cost of money rate = .......................................................................
Minimum rate allowable = .................................................................................
945,987,530
....................
....................
....................
....................
....................
....................
5.00
5.00
* RTB borrowed $99,306,000 from the financing account in FY 2005; the remaining funds will be used to cover other obligations of the fund.
RURAL TELEPHONE BANK HISTORICAL COST OF MONEY RATE—FINANCING ACCOUNT
(a)
Cost of
money
(%)
jlentini on PROD1PC65 with NOTICES
Fiscal year
FY
FY
FY
FY
FY
FY
FY
FY
1992
1993
1994
1995
1996
1997
1998
1999
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
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7.38
6.35
6.40
6.88
6.42
6.54
5.71
5.54
(b)
Advances
($)
4,056,250
23,839,200
56,838,902
37,161,517
44,536,621
34,368,726
34,446,458
38,685,732
E:\FR\FM\16AUN1.SGM
16AUN1
(c)
(a)×(b)
($)
299,351
1,513,789
3,637,690
2,556,712
2,859,251
2,247,715
1,966,893
2,143,190
(c)/Total
Advances
(%)
0.055
0.278
0.669
0.470
0.526
0.413
0.362
0.394
47168
Federal Register / Vol. 71, No. 158 / Wednesday, August 16, 2006 / Notices
RURAL TELEPHONE BANK HISTORICAL COST OF MONEY RATE—FINANCING ACCOUNT—Continued
(a)
Cost of
money
(%)
Fiscal year
FY
FY
FY
FY
FY
2000
2001
2002
2003
2004
(b)
Advances
($)
(c)
(a)×(b)
($)
(c)/Total
Advances
(%)
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
6.05
5.17
6.05
5.67
5.36
31,401,867
55,405,896
60,232,919
55,835,695
67,074,751
1,899,813
2,864,485
3,644,092
3,165,884
3,595,207
0.349
0.527
0.670
0.582
0.661
Total advances ......................................................................................
Cost of money .......................................................................................
....................
....................
543,884,534
............................
............................
5.96
[FR Doc. 06–6970 Filed 8–15–06; 8:45 am]
BILLING CODE 3410–15–M
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
Georgia Transmission Corporation;
Notice of Intent To Hold a Public
Scoping Meeting and Prepare an
Environmental Assessment
Rural Utilities Service, USDA.
Notice of intent to hold a public
scoping meeting and prepare an
Environmental Assessment (EA).
AGENCY:
jlentini on PROD1PC65 with NOTICES
ACTION:
SUMMARY: Rural Utilities Service (RUS),
an agency which administers the U.S.
Department of Agriculture’s Rural
Development Utilities Programs. RUS
intends to hold a public scoping
meeting and prepare an Environmental
Assessment (EA) in connection with
possible impacts related to a project
proposed by Georgia Transmission
Corporation (GTC), with headquarters in
Tucker, Georgia.
The proposal consists of the
construction of approximately 7 miles of
230 kilovolt (kV) transmission line from
the proposed East Walton 500/230 kV
Substation to the proposed Bethabara
Substation. The 230 kilovolt
transmission line proposal would be
located in Walton and Oconee Counties,
Georgia. The proposed East Walton 500/
230 kV Substation is located in Walton
County and the proposed Bethabara
Substation in Oconee County. This
proposal is a connected action to the
East Walton-Rockville 500 kV
Transmission Line, the East WaltonJack’s 230 kV Transmission Line that
was presented at the scoping meetings
held on Monday, April 17, 2006, at
Carver Middle School in Monroe,
Georgia and Tuesday, April 18, 2006, at
the Madison Morgan Cultural Center in
Madison, Georgia. GTC is requesting
RUS provide financing for the proposal.
DATES: RUS will conduct one scoping
meeting in an open house format,
VerDate Aug<31>2005
20:24 Aug 15, 2006
Jkt 208001
seeking the input of the public and
other interested parties. The meeting
will be held from 5 p.m. until 7 p.m.,
August 22, 2006, in Fellowship Hall of
the Bethabara Baptist Church, 4651
Monroe Highway (US 78), Statham,
Georgia 30666.
An Electric Alternative Evaluation
and Macro Corridor Study Report,
prepared by Georgia Transmission
Corporation, will be presented at the
public scoping meeting. The Report will
be available for public review at RUS’
address provided in this notice, at RUS’
Web site: https://www.usda.gov/rus/
water/ees/ea.htm, at Georgia
Transmission Corporation, 2100 East
Exchange Place, Tucker, Georgia 30084
and at the following locations:
Walton County Library, 217 West Spring
Street, Monroe, Georgia 30655; 770
267–4630.
Oconee County Library, 1080
Experiment Station Road,
Watkinsville, Georgia 30677; 706 769–
3950.
FOR FURTHER INFORMATION CONTACT:
Stephanie Strength, Environmental
Protection Specialist, USDA Rural
Development, Utilities Programs,
Engineering and Environmental Staff,
1400 Independence Avenue, SW., Stop
1571, Washington, DC 20250–1571,
telephone (202) 720–0468. Mrs.
Strength’s E-mail address is
stephanie.strength@wdc.usda.gov.
Georgia
Transmission Corporation proposes to
construct a 230 kilovolt transmission
line from the proposed East Walton 500/
230 kV Substation to the proposed
Bethabara Substation. It would require a
right-of-way of 100 feet. Guyed and
unguyed concrete or steel poles ranging
in height from 80- to 120-feet would
support the East Walton-Bethabara 230
kV conductors. It is anticipated that the
transmission line would be in service in
2011.
Government agencies, private
organizations, and the public are invited
to participate in the planning and
SUPPLEMENTARY INFORMATION:
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Frm 00006
Fmt 4703
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analysis of the proposal. Representatives
from RUS and Georgia Transmission
Corporation will be available at the
scoping meeting to discuss RUS’
environmental review process, describe
the project, the purpose and need for the
proposal, macro corridors under
consideration, and to discuss the scope
of environmental issues to be
considered, answer questions, and
accept comments. Comments regarding
the proposal may be submitted (orally or
in writing) at the public scoping
meeting or in writing for receipt no later
than September 22, 2006, to RUS at the
address provided in this notice.
Georgia Transmission Corporation
will prepare an environmental analysis
to be submitted to RUS for review from
information provided in the alternative
evaluation and site selection study and
input that may be provided by
government agencies, private
organizations and the public. RUS will
use the environmental analysis to
determine the significance of the
impacts of the proposal and may adopt
it as its Environmental Assessment for
the proposal. RUS’ Environmental
Assessment will be available for review
and comment for 30 days.
Should RUS determine, based on the
Environmental Assessment that the
impacts of the construction and
operation of the transmission line
would not have a significant
environmental impact, it will prepare a
finding of no significant impact. Public
notification of a finding of no significant
impact will be published in the Federal
Register and in newspapers with a
circulation in the project area.
Any final action by RUS related to the
proposal will be subject to, and
contingent upon, compliance with
environmental review requirements as
prescribed by RUS’ environmental
policies and procedures.
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]]>Agencies
[Federal Register Volume 71, Number 158 (Wednesday, August 16, 2006)]
[Notices]
[Pages 47165-47168]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-6970]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Telephone Bank
Determination of the 2005 Fiscal Year Interest Rates on Rural
Telephone Bank Loans
AGENCY: Rural Telephone Bank, USDA.
ACTION: Notice of 2005 fiscal year interest rates determination.
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SUMMARY: In accordance with 7 CFR 1610.10, the Rural Telephone Bank
(Bank) fiscal year 2005 cost of money rates have been established as
follows: 6.18% and 5.00% for advances from the liquidating account and
financing account, respectively (fiscal year is the period beginning
October 1 and ending September 30).
All loan advances made during fiscal year 2005 under Bank loans
approved in fiscal years 1988 through 1991 shall bear interest at the
rate of 6.18% (the liquidating account rate). All loan advances made
during fiscal year 2005 under Bank loans approved during or after
fiscal year 1992 shall bear interest at the rate of 5.00% (the
financing account rate).
The calculation of the Bank's cost of money rates for fiscal year
2005 for the liquidating account and the financing account are provided
in Tables 1 and 2. Since the calculated rates are greater than or equal
to the minimum rate (5.00%) allowed under 7 U.S.C. 938(b)(3)(A), the
cost of money rates for the liquidating account and financing account
are set at 6.18% and 5.00%, respectively. The methodology required to
calculate the cost of money rates is established in 7 CFR 1610.10(c).
FOR FURTHER INFORMATION CONTACT: Jonathan P. Claffey, Deputy Assistant
Governor, Rural Telephone Bank, STOP 1590--Room 5151, 1400 Independence
Avenue, SW., Washington, DC 20250-1590. Telephone: (202) 720-9556.
SUPPLEMENTARY INFORMATION: The Federal Credit Reform Act of 1990 (2
[[Page 47166]]
U.S.C. 661a, et seq.) implemented a system to reform the budgetary
accounting and management of Federal credit programs. Bank loans
approved on or after October 1, 1991, are accounted for in a different
manner than Bank loans approved prior to fiscal year 1992. As a result,
the Bank must calculate two cost of money rates: (1) The cost of money
rate for advances made from the liquidating account (advances made
during fiscal year 2005 on loans approved prior to October 1, 1991) and
(2) the cost of money rate for advances made from the financing account
(advances made during fiscal year 2005 on loans approved on or after
October 1, 1991).
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
issuance of Class A, B, and C stock, debentures and other obligations;
and the costs to the Bank of obtaining funds.
During fiscal year 2005, the Bank was authorized to pay the
following dividends: The dividend on Class A stock as 2.00% as
established in 7 U.S.C. 946(c); no dividends were payable on Class B
stock in accordance with 7 U.S.C. 946(d); and the dividend on Class C
stock was established by the Bank at 5.74%.
Dissolution of the Bank
At its quarterly meeting on August 4, 2005, the Board of Directors
(the ``Board'') approved a resolution to dissolve the Bank. On November
10, 2005, the liquidation and dissolution process was initiated with
the signing of the 2006 Agriculture Appropriations bill by President
Bush, which contained a provision lifting the restriction on the
retirement of more than 5 percent of the Class A stock held by the
Government.
In accordance with the Board's resolution and the terms of the Loan
Transfer Agreement between the Bank and the Government, dated August 4,
2005, the Bank's liquidating account loan portfolio was transferred to
the Government on October 1, 2005. As a result of that transfer, there
will be no more advances of liquidating account loan funds. Therefore,
this is the last notice that will report an interest rate for
liquidating account loan advances.
The dissolution of the Bank will not affect future advances of
financing account loan funds. Requests for financing account advances
will continue to be processed by employees of USDA Rural Development's
Telecommunications Program, just as they were while the Bank remained
in operation. The terms and conditions of the financing account loans
will not change, nor will the method for determining the interest
rates, including the determination of the cost of money rates after the
end of the fiscal year. The only significant change to the financing
account advances is that effective October 1, 2005, no Class B stock in
the Bank will be purchased with a financing account loan advance.
Sources and Costs of Funds--Liquidating Account
In accordance with 7 U.S.C. 946(a), the Bank did not issue Class A
stock in fiscal year 2005. There were no net issuances of Class B stock
because the rescissions of loan funds advanced for Class B stock
exceeded the amount of issuances. The amount received by the Bank in
fiscal year 2005 from the issuance of Class C stock was $8,048.
The Bank did not issue debentures or any other obligations related
to the liquidating account in fiscal year 2005. Consequently, no cost
was incurred related to the issuance of debentures subject to 7 U.S.C.
948(b)(3)(D).
The excess of fiscal year 2005 loan advances from the liquidating
account over amounts received from issuance of stocks, debentures, and
other obligations amounted to $794,953. The cost associated with this
excess is the historic cost of money rate as defined in 7 U.S.C.
948(b)(3)(D)(v). The calculation of the Bank's historic cost of money
rate for advances from the liquidating account is also provided in
Table 1. The methodology required to perform this calculation is
described in 7 CFR 1610.10(c). The cost of the money rates for fiscal
years 1974 through 1987 are defined in 7 U.S.C. 948(b) and are listed
in 7 CFR 1610.10(c) and Table 1 herein.
Sources and Costs of Funds--Financing Account
In accordance with 7 U.S.C. 946(a), the Bank did not issue Class A
stock in fiscal year 2005. Advances for the purchase of Class B stock
and cash purchases for Class B stock were $4,570,841. There were
rescissions of loan funds advanced for Class B stock in the amount of
$8,967; therefore, the amount received by the Bank from the issuance of
Class B stock, per 7 CFR 1610.10(c), was $4,561,874. The Bank did not
receive any amounts in fiscal year 2005 from the issuance of Class C
Stock.
During fiscal year 2005, issuance of debentures or any other
obligations related to advances from the financing account were
$91,416,689 at an interest rate of 5.250%.
The excess of fiscal year 2005 loan advances from the financing
account over amounts received from issuance of stocks, debentures, and
other obligations amounted to $8,967. The cost associated with this
excess is the historic cost of money rate as defined in 7 U.S.C.
948(b)(3)(D)(v). The Bank's cost of money rate for advances from the
financial account is provided in Table 2. The methodology required to
perform this calculation is described in 7 CFR 1610.10(c).
Dated: August 11, 2006.
James M. Andrew,
Governor, Rural Telephone Bank.
Rural Telephone Bank Cost of Money Rate--Liqudating Account
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(c)/
FY 2005 source of bank funds (a) Amount (b) Cost (c) (a)x(b) Advances
($) (%) ($) (%)
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Issuance of Class A Stock................................... ........... 2.00 ........... 0.0000
Issuance of Class B Stock................................... ........... 0.00 ........... 0.0000
Issuance of Class C Stock................................... 8,048 5.74 462 0.0575
Issuance of Debentures and Other Obligations................ ........... 0.00 ........... 0.0000
Excess of Total Advances Over Issuances..................... 794,953 6.19 49,194 6.1263
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Total FY 2005 Advances.................................. 803,001
Calculated cost of money rate =......................... ........... ........... ........... 6.18
Minimum rate allowable =................................ ........... ........... ........... 5.00
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[[Page 47167]]
Rural Telephone Bank Historical Cost of Money Rate--Liquidating Account
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(c)/Total
Fiscal year (a) Cost of (b) advances (c) (a)x(b) ($) Advances
money (%) ($) (%)
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FY 1974............................................. 5.01 111,022,574 5,562,231 0.231
FY 1975............................................. 5.85 130,663,197 7,643,797 0.318
FY 1976............................................. 5.33 99,915,066 5,325,473 0.221
FY 1977............................................. 5.00 80,907,425 4,045,371 0.168
FY 1978............................................. 5.87 142,297,190 8,352,845 0.347
FY 1979............................................. 5.93 130,540,067 7,741,026 0.322
FY 1980............................................. 8.10 199,944,235 16,195,483 0.673
FY 1981............................................. 9.46 148,599,372 14,057,501 0.584
FY 1982............................................. 8.39 112,232,127 9,416,275 0.391
FY 1983............................................. 6.99 93,402,836 6,528,858 0.271
FY 1984............................................. 6.55 90,450,549 5,924,511 0.246
FY 1985............................................. 5.00 72,583,394 3,629,170 0.151
FY 1986............................................. 5.00 71,582,383 3,579,119 0.149
FY 1987............................................. 5.00 51,974,938 2,598,747 0.108
FY 1988............................................. 5.00 119,488,367 5,974,418 0.248
FY 1989............................................. 5.00 97,046,947 4,852,347 0.202
FY 1990............................................. 5.00 107,694,991 5,384,750 0.224
FY 1991............................................. 5.43 163,143,075 3,858,669 0.368
FY 1992............................................. 6.14 84,940,822 5,215,366 0.217
FY 1993............................................. 6.05 84,605,366 5,118,625 0.213
FY 1994............................................. 6.15 54,530,897 3,353,650 0.139
FY 1995............................................. 6.04 35,967,133 2,172,415 0.090
FY 1996............................................. 6.05 30,965,187 1,873,394 0.078
FY 1997............................................. 5.98 32,602,587 1,949,635 0.081
FY 1998............................................. 5.96 20,673,798 1,232,158 0.051
FY 1999............................................. 6.01 17,796,518 1,069,571 0.044
FY 2000............................................. 6.01 10,436,622 627,241 0.026
FY 2001............................................. 5.95 6,638,107 394,967 0.016
FY 2002............................................. 6.51 1,864,500 121,379 0.005
FY 2003............................................. 6.05 604,800 36,590 0.002
FY 2004............................................. 6.18 880,504 54,415 0.002
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Total advances.................................. ........... 2,405,995,574 ................ .........
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Cost of money................................... ........... ................ ................ 6.19
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Rural Telephone Bank Cost of Money Rate--Financing Account
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(c)/
FY 2005 source of bank funds (a) Amount (b) Cost (c) (a)x(b) Advances
($) (%) ($) (%)
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Issuance of Class A Stock................................... ........... 2.00 ........... 0.0000
Issuance of Class B Stock................................... 4,561,874 0.00 ........... 0.0000
Issuance of Class C Stock................................... ........... 5.740 ........... 0.0000
Issuance of Debentures and Other Obligations*............... 91,416,689 5.250 4,799,659 5.0003
Excess of Total Advances Over Issuances..................... 8,967 5.956 534 0.0006
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Total FY 2005 Advances.................................. 945,987,530
Calculated cost of money rate =......................... ........... ........... ........... 5.00
Minimum rate allowable =................................ ........... ........... ........... 5.00
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* RTB borrowed $99,306,000 from the financing account in FY 2005; the remaining funds will be used to cover
other obligations of the fund.
Rural Telephone Bank Historical Cost of Money Rate--Financing Account
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(c)/Total
Fiscal year (a) Cost of (b) Advances (c) (a)x(b) ($) Advances
money (%) ($) (%)
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FY 1992............................................. 7.38 4,056,250 299,351 0.055
FY 1993............................................. 6.35 23,839,200 1,513,789 0.278
FY 1994............................................. 6.40 56,838,902 3,637,690 0.669
FY 1995............................................. 6.88 37,161,517 2,556,712 0.470
FY 1996............................................. 6.42 44,536,621 2,859,251 0.526
FY 1997............................................. 6.54 34,368,726 2,247,715 0.413
FY 1998............................................. 5.71 34,446,458 1,966,893 0.362
FY 1999............................................. 5.54 38,685,732 2,143,190 0.394
[[Page 47168]]
FY 2000............................................. 6.05 31,401,867 1,899,813 0.349
FY 2001............................................. 5.17 55,405,896 2,864,485 0.527
FY 2002............................................. 6.05 60,232,919 3,644,092 0.670
FY 2003............................................. 5.67 55,835,695 3,165,884 0.582
FY 2004............................................. 5.36 67,074,751 3,595,207 0.661
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Total advances.................................. ........... 543,884,534 ................ .........
Cost of money................................... ........... ................ ................ 5.96
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[FR Doc. 06-6970 Filed 8-15-06; 8:45 am]
BILLING CODE 3410-15-M
