Determination of the 2005 Fiscal Year Interest Rates on Rural Telephone Bank Loans, 47165-47168 [06-6970]

Download as PDF 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. VerDate Aug<31>2005 20:24 Aug 15, 2006 Jkt 208001 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 PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 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 E:\FR\FM\16AUN1.SGM 16AUN1 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 E:\FR\FM\16AUN1.SGM 16AUN1 VerDate Aug<31>2005 20:24 Aug 15, 2006 Jkt 208001 PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 (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 $99,306,000 from the financing account in FY 2005; the remaining funds will be used to cover other obligations of the fund. RURAL TELEPHONE BANK HISTORICAL COST OF MONEY RATE—FINANCING ACCOUNT (a) Cost of money (%) jlentini on PROD1PC65 with NOTICES Fiscal year FY FY FY FY FY FY FY FY 1992 1993 1994 1995 1996 1997 1998 1999 ............................................................................................................... ............................................................................................................... ............................................................................................................... ............................................................................................................... ............................................................................................................... ............................................................................................................... ............................................................................................................... ............................................................................................................... VerDate Aug<31>2005 20:24 Aug 15, 2006 Jkt 208001 PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 7.38 6.35 6.40 6.88 6.42 6.54 5.71 5.54 (b) Advances ($) 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: PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 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. E:\FR\FM\16AUN1.SGM 16AUN1

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.

-----------------------------------------------------------------------

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
----------------------------------------------------------------------------------------------------------------
(c)/
FY 2005 source of bank funds (a) Amount (b) Cost (c) (a)x(b) Advances
($) (%) ($) (%)
----------------------------------------------------------------------------------------------------------------
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
-------------
Total FY 2005 Advances.................................. 803,001
Calculated cost of money rate =......................... ........... ........... ........... 6.18
Minimum rate allowable =................................ ........... ........... ........... 5.00
----------------------------------------------------------------------------------------------------------------

[[Page 47167]]

Rural Telephone Bank Historical Cost of Money Rate--Liquidating Account
----------------------------------------------------------------------------------------------------------------
(c)/Total
Fiscal year (a) Cost of (b) advances (c) (a)x(b) ($) Advances
money (%) ($) (%)
----------------------------------------------------------------------------------------------------------------
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
------------------
Total advances.................................. ........... 2,405,995,574 ................ .........
----------
Cost of money................................... ........... ................ ................ 6.19
----------------------------------------------------------------------------------------------------------------

Rural Telephone Bank Cost of Money Rate--Financing Account
----------------------------------------------------------------------------------------------------------------
(c)/
FY 2005 source of bank funds (a) Amount (b) Cost (c) (a)x(b) Advances
($) (%) ($) (%)
----------------------------------------------------------------------------------------------------------------
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
------------- ------------
Total FY 2005 Advances.................................. 945,987,530
Calculated cost of money rate =......................... ........... ........... ........... 5.00
Minimum rate allowable =................................ ........... ........... ........... 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
----------------------------------------------------------------------------------------------------------------
(c)/Total
Fiscal year (a) Cost of (b) Advances (c) (a)x(b) ($) Advances
money (%) ($) (%)
----------------------------------------------------------------------------------------------------------------
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
------------------
Total advances.................................. ........... 543,884,534 ................ .........
Cost of money................................... ........... ................ ................ 5.96
----------------------------------------------------------------------------------------------------------------

[FR Doc. 06-6970 Filed 8-15-06; 8:45 am]
BILLING CODE 3410-15-M

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.