Mortgage and Loan Insurance Programs Under the National Housing Act-Debenture Interest Rates, 7754-7756 [E8-2514]
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7754
Federal Register / Vol. 73, No. 28 / Monday, February 11, 2008 / Notices
part 177 consistent with the Federal
Procurement Regulations. See 19 CFR
177.21. In this regard, CBP recognizes
that the Federal Procurement
Regulations restrict the U.S.
Government’s purchase of products to
U.S.-made or designated country end
products for acquisitions subject to the
TAA. See 48 CFR 25.403(c)(1). The
Federal Procurement Regulations define
‘‘U.S.-made end product’’ as:
rwilkins on PROD1PC63 with NOTICES
* * * an article that is mined, produced,
or manufactured in the United States or that
is substantially transformed in the United
States into a new and different article of
commerce with a name, character, or use
distinct from that of the article or articles
from which it was transformed.
48 CFR 25.003
Therefore, the question presented in
this final determination is whether, as a
result of the operations performed in the
United States, the flashlight and
replacement part are substantially
transformed into products of the United
States.
In determining whether the
combining of parts or materials
constitutes a substantial transformation,
the determinative issue is the extent of
the operations performed and whether
the parts lose their identity and become
an integral part of the new article.
Belcrest Linens v. United States, 6 Ct.
Int’l Trade 204, 573 F. Supp. 1149
(1983), aff’d, 741 F.2d 1368 (Fed. Cir.
1984). If the manufacturing or
combining process is a minor one that
leaves the identity of the imported
article intact, a substantial
transformation has not occurred.
Uniroyal, Inc. v. United States, 3 Ct.
Int’l Trade 220, 542 F. Supp. 1026
(1982). Assembly operations that are
minimal or simple, as opposed to
complex or meaningful, generally will
not result in a substantial
transformation. See C.S.D. 80–111,
C.S.D. 85–25, C.S.D. 89–110, C.S.D. 89–
118, C.S.D. 90–51, and C.S.D. 90–97.
In order to determine whether a
substantial transformation occurs when
components of various origins are
assembled to form completed articles,
CBP considers the totality of the
circumstances and makes such
decisions on a case-by-case basis. The
country of origin of the article’s
components, the extent of the
processing that occurs within a given
country, and whether such processing
renders a product with a new name,
character, and use are primary
considerations in such cases.
Additionally, facts such as resources
expended on product design and
development, the extent and nature of
post-assembly inspection procedures,
and the worker skill required during the
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16:44 Feb 08, 2008
Jkt 214001
actual manufacturing process will be
considered when analyzing whether a
substantial transformation has occurred;
however, no one such factor is
determinative.
You assert that the U.S.-origin LED
imparts the essential character to the
flashlight and the replacement lens head
subassembly. In addition to having a
high monetary value relative to the
other components, it generates the
primary light in both products. The LED
is manufactured to Energizer’s
specifications in order to provide
certain desirable characteristics
regarding the light’s color, intensity,
durability, coverage, and efficiency. You
also note that the foreign-origin reflector
is engineered to maximize these
particular characteristics.
You claim that as a result of the
manufacturing, assembly, and testing
processes performed in the United
States, the foreign-origin components
undergo a substantial transformation
such that both the flashlight and the
replacement lens head subassembly
become products of the United States
for purposes of U.S. Government
procurement.
In Headquarters Ruling Letter
(‘‘HRL’’) 563236, dated July 6, 2005,
CBP examined whether multi-line
telephone sets assembled in Mexico
from parts of Mexican and foreign origin
were products of Mexico for purposes of
U.S. Government procurement. Among
the foreign components imported into
Mexico for the assembly of the
telephone sets were printed circuit
assemblies (‘‘PCAs’’) from Malaysia. The
handsets, liquid crystal displays,
microphone assemblies, and stands
incorporated into the telephones were of
Mexican origin. In reaching a
determination that the telephone sets
were products of Mexico, CBP noted
that the telephone sets were comprised
of certain essential parts (such as the
handsets) that were of Mexican origin.
Moreover, many of the components
lacked any functionality prior to their
assembly within the telephone set.
In HRL 962528, dated February 18,
2000, CBP considered the eligibility of
a rechargeable power failure light for
duty free treatment under the
Generalized System of Preferences. In
that case, the power failure light was
assembled in Thailand from various
Thai and foreign origin components,
including a PCB assembled in Thailand.
CBP found that the process of
assembling various components into a
PCB resulted in a substantial
transformation of the imported
components. Moreover, CBP found that
the assembly of the PCB with a bulb
holder assembly, a plug blade assembly,
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Fmt 4703
Sfmt 4703
and the upper and lower housing
assemblies to make the finished power
failure light substantially transformed
the PCB.
Based on the totality of the
circumstances and consistent with the
CBP rulings cited above, we find that
the various imported components
(individual parts and subassemblies) are
substantially transformed as a result of
the operations performed in the United
States to produce both the replacement
lens head subassembly and the finished
flashlight. Under each manufacturing
scenario, the imported components lose
their individual identities and become
an integral part of a new article
possessing a new name, character, and
use. In support of this conclusion, we
agree that the U.S.-origin LED imparts
the essential character to both the
replacement part and the finished
product, as it generates the primary light
of both products. We also recognize that
Energizer has expended significant
resources in connection with the design
and development of the subject
flashlight in the United States.
Moreover, the U.S.-origin LED and the
labor performed in the United States
during the assembly and testing
operations represent a majority of the
costs associated with the production of
both the replacement lens head
subassembly and the finished flashlight.
Holding
Based upon the specific facts of this
case, we find that the imported
components of the flashlight and
replacement lens head subassembly are
substantially transformed as a result of
the described manufacturing operations
performed in the United States. The
country of origin of the flashlight and
the replacement lens head subassembly
is the United States.
Sincerely,
Myles B. Harmon,
Acting Executive Director, Office of
Regulations and Rulings, Office of
International Trade.
[FR Doc. E8–2429 Filed 2–8–08; 8:45 am]
BILLING CODE 9111–14–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5202–N–01]
Mortgage and Loan Insurance
Programs Under the National Housing
Act—Debenture Interest Rates
Office of the Assistant
Secretary for Housing—Federal Housing
Commissioner, HUD.
ACTION: Notice.
AGENCY:
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11FEN1
7755
Federal Register / Vol. 73, No. 28 / Monday, February 11, 2008 / Notices
SUMMARY: This notice announces
changes in the interest rates to be paid
on debentures issued with respect to a
loan or mortgage insured by the Federal
Housing Administration under the
provisions of the National Housing Act
(the Act). The interest rate for
debentures issued under section
221(g)(4) of the Act during the 6-month
period beginning January 1, 2008, is 41⁄8
percent. The interest rate for debentures
issued under any other provision of the
Act is the rate in effect on the date that
the commitment to insure the loan or
mortgage was issued, or the date that the
loan or mortgage was endorsed (or
initially endorsed if there are two or
more endorsements) for insurance,
whichever rate is higher. The interest
rate for debentures issued under these
other provisions with respect to a loan
or mortgage committed or endorsed
during the 6-month period beginning
January 1, 2008, is 41⁄2 percent.
However, as a result of an amendment
to section 224 of the Act, if an insurance
claim relating to a mortgage insured
under sections 203 or 234 of the Act and
endorsed for insurance after January 23,
2004, is paid in cash, the debenture
interest rate for purposes of calculating
a claim shall be the monthly average
yield, for the month in which the
default on the mortgage occurred, on
United States Treasury Securities
adjusted to a constant maturity of 10
years.
FOR FURTHER INFORMATION CONTACT:
Yong Sun, Department of Housing and
Urban Development, 451 Seventh Street,
SW., Room 5148, Washington, DC
20410–8000; telephone (202) 402–4778
(this is not a toll-free number).
Individuals with speech or hearing
impairments may access this number
through TTY by calling the toll-free
Federal Information Relay Service at
(800) 877–8339.
SUPPLEMENTARY INFORMATION: Section
224 of the National Housing Act (12
U.S.C. 1715o) provides that debentures
issued under the Act with respect to an
insured loan or mortgage (except for
debentures issued pursuant to section
221(g)(4) of the Act) will bear interest at
the rate in effect on the date the
commitment to insure the loan or
mortgage was issued, or the date the
loan or mortgage was endorsed (or
initially endorsed if there are two or
more endorsements) for insurance,
whichever rate is higher. This provision
is implemented in HUD’s regulations at
24 CFR 203.405, 203.479, 207.259(e)(6),
and 220.830. These regulatory
provisions state that the applicable rates
of interest will be published twice each
year as a notice in the Federal Register.
rwilkins on PROD1PC63 with NOTICES
Effective interest rate
on or after
91⁄2 ..............................................................................................................................
97⁄8 ..............................................................................................................................
113⁄4 ............................................................................................................................
127⁄8 ............................................................................................................................
123⁄4 ............................................................................................................................
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133⁄8 ............................................................................................................................
115⁄8 ............................................................................................................................
111⁄8 ............................................................................................................................
101⁄4 ............................................................................................................................
81⁄4 ..............................................................................................................................
8 ..................................................................................................................................
9 ..................................................................................................................................
91⁄8 ..............................................................................................................................
93⁄8 ..............................................................................................................................
91⁄4 ..............................................................................................................................
9 ..................................................................................................................................
81⁄8 ..............................................................................................................................
9 ..................................................................................................................................
83⁄4 ..............................................................................................................................
81⁄2 ..............................................................................................................................
8 ..................................................................................................................................
8 ..................................................................................................................................
73⁄4 ..............................................................................................................................
7 ..................................................................................................................................
65⁄8 ..............................................................................................................................
73⁄4 ..............................................................................................................................
83⁄8 ..............................................................................................................................
71⁄4 ..............................................................................................................................
61⁄2 ..............................................................................................................................
71⁄4 ..............................................................................................................................
63⁄4 ..............................................................................................................................
71⁄8 ..............................................................................................................................
Jan. 1, 1980
July 1, 1980
Jan. 1, 1981
July 1, 1981
Jan. 1, 1982
Jan. 1, 1983
July 1, 1983
Jan. 1, 1984
July 1, 1984
Jan. 1, 1985
July 1, 1985
Jan. 1, 1986
July 1, 1986
Jan. 1, 1987
July 1, 1987
Jan. 1, 1988
July 1, 1988
Jan. 1, 1989
July 1, 1989
Jan. 1, 1990
July 1, 1990
Jan. 1, 1991
July 1, 1991
Jan. 1, 1992
July 1, 1992
Jan. 1, 1993
July 1, 1993
Jan. 1, 1994
July 1, 1994
Jan. 1, 1995
July 1, 1995
Jan. 1, 1996
July 1, 1996
Jan. 1, 1997
July 1, 1997
Section 224 further provides that the
interest rate on these debentures will be
set from time to time by the Secretary
of HUD, with the approval of the
Secretary of the Treasury, in an amount
not in excess of the annual interest rate
determined by the Secretary of the
Treasury pursuant to a statutory formula
based on the average yield of all
outstanding marketable Treasury
obligations of maturities of 15 or more
years.
The Secretary of the Treasury (1) has
determined, in accordance with the
provisions of section 224, that the
statutory maximum interest rate for the
period beginning January 1, 2008, is 41⁄2
percent; and (2) has approved the
establishment of the debenture interest
rate by the Secretary of HUD at 41⁄2
percent for the 6-month period
beginning January 1, 2008. This interest
rate will be the rate borne by debentures
issued with respect to any insured loan
or mortgage (except for debentures
issued pursuant to section 221(g)(4))
with insurance commitment or
endorsement date (as applicable) within
the first 6 months of 2008.
For convenience of reference, HUD is
publishing the following chart of
debenture interest rates applicable to
mortgages committed or endorsed since
January 1, 1980:
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11FEN1
July 1, 1980
Jan. 1, 1981
July 1, 1981
Jan. 1, 1982
Jan. 1, 1983
July 1, 1983
Jan. 1, 1984
July 1, 1984
Jan. 1, 1985
July 1, 1985
Jan. 1, 1986
July 1, 1986
Jan. 1, 1987
July 1, 1987
Jan. 1, 1988
July 1, 1988
Jan. 1, 1989
July 1, 1989
Jan. 1, 1990
July 1, 1990
Jan. 1, 1991
July 1, 1991
Jan. 1, 1992
July 1, 1992
Jan. 1, 1993
July 1, 1993
Jan. 1, 1994
July 1, 1994
Jan. 1, 1995
July 1, 1995
Jan. 1, 1996
July 1, 1996
Jan. 1, 1997
July 1, 1997
Jan. 1, 1998
7756
Federal Register / Vol. 73, No. 28 / Monday, February 11, 2008 / Notices
Effective interest rate
on or after
6 ⁄ ..............................................................................................................................
61⁄8 ..............................................................................................................................
51⁄2 ..............................................................................................................................
61⁄8 ..............................................................................................................................
61⁄2 ..............................................................................................................................
61⁄2 ..............................................................................................................................
6 ..................................................................................................................................
57⁄8 ..............................................................................................................................
51⁄4 ..............................................................................................................................
53⁄4 ..............................................................................................................................
5 ..................................................................................................................................
41⁄2 ..............................................................................................................................
51⁄8 ..............................................................................................................................
51⁄2 ..............................................................................................................................
47⁄8 ..............................................................................................................................
41⁄2 ..............................................................................................................................
47⁄8 ..............................................................................................................................
53⁄8 ..............................................................................................................................
43⁄4 ..............................................................................................................................
5 ..................................................................................................................................
41⁄2 ..............................................................................................................................
Jan. 1, 1998
July 1, 1998
Jan. 1, 1999
July 1, 1999
Jan. 1, 2000
July 1, 2000
Jan. 1, 2001
July 1, 2001
Jan. 1, 2002
July 1, 2002
Jan. 1, 2003
July 1, 2003
Jan. 1, 2004
July 1, 2004
Jan. 1, 2005
July 1, 2005
Jan. 1, 2006
July 1, 2006
Jan. 1, 2007
July 1, 2007
Jan. 1, 2008
rwilkins on PROD1PC63 with NOTICES
38
Section 215 of Division G, Title II of
Pub. L. 108–199, enacted January 23,
2004 (HUD’s 2004 Appropriations Act)
amended section 224 of the Act, to
change the debenture interest rate for
purposes of calculating certain
insurance claim payments made in cash.
Therefore, for all claims paid in cash on
mortgages insured under section 203 or
234 of the National Housing Act and
endorsed for insurance after January 23,
2004, the debenture interest rate will be
the monthly average yield, for the
month in which the default on the
mortgage occurred, on United States
Treasury Securities adjusted to a
constant maturity of 10 years, as found
in Federal Reserve Statistical Release H–
15. The Federal Housing Administration
has codified this provision in HUD
regulations at 24 CFR 203.405(b) and 24
CFR 203.479(b).
Section 221(g)(4) of the Act provides
that debentures issued pursuant to that
paragraph (with respect to the
assignment of an insured mortgage to
the Secretary) will bear interest at the
‘‘going Federal rate’’ in effect at the time
the debentures are issued. The term
‘‘going Federal rate’’ is defined to mean
the interest rate that the Secretary of the
Treasury determines, pursuant to a
statutory formula based on the average
yield on all outstanding marketable
Treasury obligations of 8-to 12-year
maturities, for the 6-month periods of
January through June and July through
December of each year. Section 221(g)(4)
is implemented in the HUD regulations
at 24 CFR 221.255 and 24 CFR 221.790.
The Secretary of the Treasury has
determined that the interest rate to be
borne by debentures issued pursuant to
section 221(g)(4) during the 6-month
VerDate Aug<31>2005
16:44 Feb 08, 2008
Jkt 214001
period beginning January 1, 2008, is 41⁄8
percent.
HUD expects to publish its next
notice of change in debenture interest
rates in July 2008.
The subject matter of this notice falls
within the categorical exemption from
HUD’s environmental clearance
procedures set forth in 24 CFR
50.19(c)(6). For that reason, no
environmental finding has been
prepared for this notice.
(Authority: Sections 211, 221, 224, National
Housing Act, 12 U.S.C. 1715b, 1715l, 1715o;
Section 7(d), Department of HUD Act, 42
U.S.C. 3535(d).)
Dated: February 1, 2008.
Brian D. Montgomery,
Assistant Secretary for Housing—Federal
Housing Commissioner.
[FR Doc. E8–2514 Filed 2–8–08; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5159–C–01]
Notice of Funding Availability for the
Fiscal Year 2007 Public Housing
Neighborhood Networks Program;
Technical Correction
Office of the Public and Indian
Housing, HUD.
ACTION: Technical Corrections to Fiscal
Year 2007 NOFA for the Public Housing
Neighborhood Networks Program.
AGENCY:
SUMMARY: On December 11, 2007, HUD
published its Fiscal Year (FY) 2007
Notice of Funding Availability (NOFA)
for the Public Housing Neighborhood
Networks Program. In today’s Federal
Register notice, HUD announces that it
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July 1, 1998
Jan. 1, 1999
July 1, 1999
Jan. 1, 2000
July 1, 2000
Jan. 1, 2001
July 1, 2001
Jan. 1, 2002
July 1, 2002
Jan. 1, 2003
July 1, 2003
Jan. 1, 2004
July 1, 2004
Jan. 1, 2005
July 1, 2005
Jan. 1, 2006
July 1, 2006
Jan. 1, 2007
July 1, 2007
Jan. 1, 2008
July 1, 2008
has removed the Adobe application
from Grants.gov for this NOFA,
extended the deadline date for
submission of applications, and clarifies
why the Adobe package has been
removed.
DATES: The application deadline date for
the Public Housing Neighborhood
Networks Program NOFA has been
extended to March 14, 2008.
FOR FURTHER INFORMATION CONTACT:
Questions regarding this Technical
Correction should be directed to the
Office of Departmental Grants
Management and Oversight, Office of
Administration, Department of Housing
and Urban Development, 451 Seventh
Street, SW., Room 3156, Washington,
DC 20410–5000; telephone number
(202) 708–0667. Persons with hearing or
speech impairments may access this
number via TTY by calling the Federal
Information Relay Service at (800) 877–
8339.
SUPPLEMENTARY INFORMATION:
I. Submission or Resubmission of
Applications with PureEdge
On December 11, 2007 (72 FR 70458),
HUD published its FY2007 NOFA for
the Public Housing Neighborhood
Networks Program and posted it to
Grants.gov, making applications
available in both PureEdge and Adobe
8.1.1 formats. HUD has recently
determined that applications submitted
using the Adobe Application Package
posted to Grants.gov will cause
problems during submission if any
individuals working on the application
have not used Adobe 8.1.1 to complete
the application. Specifically, if any
individual working on the application
does not use Adobe 8.1.1, the
application becomes corrupt and not
E:\FR\FM\11FEN1.SGM
11FEN1
]]>Agencies
[Federal Register Volume 73, Number 28 (Monday, February 11, 2008)]
[Notices]
[Pages 7754-7756]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-2514]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5202-N-01]
Mortgage and Loan Insurance Programs Under the National Housing
Act--Debenture Interest Rates
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
[[Page 7755]]
SUMMARY: This notice announces changes in the interest rates to be paid
on debentures issued with respect to a loan or mortgage insured by the
Federal Housing Administration under the provisions of the National
Housing Act (the Act). The interest rate for debentures issued under
section 221(g)(4) of the Act during the 6-month period beginning
January 1, 2008, is 4\1/8\ percent. The interest rate for debentures
issued under any other provision of the Act is the rate in effect on
the date that the commitment to insure the loan or mortgage was issued,
or the date that the loan or mortgage was endorsed (or initially
endorsed if there are two or more endorsements) for insurance,
whichever rate is higher. The interest rate for debentures issued under
these other provisions with respect to a loan or mortgage committed or
endorsed during the 6-month period beginning January 1, 2008, is 4\1/2\
percent. However, as a result of an amendment to section 224 of the
Act, if an insurance claim relating to a mortgage insured under
sections 203 or 234 of the Act and endorsed for insurance after January
23, 2004, is paid in cash, the debenture interest rate for purposes of
calculating a claim shall be the monthly average yield, for the month
in which the default on the mortgage occurred, on United States
Treasury Securities adjusted to a constant maturity of 10 years.
FOR FURTHER INFORMATION CONTACT: Yong Sun, Department of Housing and
Urban Development, 451 Seventh Street, SW., Room 5148, Washington, DC
20410-8000; telephone (202) 402-4778 (this is not a toll-free number).
Individuals with speech or hearing impairments may access this number
through TTY by calling the toll-free Federal Information Relay Service
at (800) 877-8339.
SUPPLEMENTARY INFORMATION: Section 224 of the National Housing Act (12
U.S.C. 1715o) provides that debentures issued under the Act with
respect to an insured loan or mortgage (except for debentures issued
pursuant to section 221(g)(4) of the Act) will bear interest at the
rate in effect on the date the commitment to insure the loan or
mortgage was issued, or the date the loan or mortgage was endorsed (or
initially endorsed if there are two or more endorsements) for
insurance, whichever rate is higher. This provision is implemented in
HUD's regulations at 24 CFR 203.405, 203.479, 207.259(e)(6), and
220.830. These regulatory provisions state that the applicable rates of
interest will be published twice each year as a notice in the Federal
Register.
Section 224 further provides that the interest rate on these
debentures will be set from time to time by the Secretary of HUD, with
the approval of the Secretary of the Treasury, in an amount not in
excess of the annual interest rate determined by the Secretary of the
Treasury pursuant to a statutory formula based on the average yield of
all outstanding marketable Treasury obligations of maturities of 15 or
more years.
The Secretary of the Treasury (1) has determined, in accordance
with the provisions of section 224, that the statutory maximum interest
rate for the period beginning January 1, 2008, is 4\1/2\ percent; and
(2) has approved the establishment of the debenture interest rate by
the Secretary of HUD at 4\1/2\ percent for the 6-month period beginning
January 1, 2008. This interest rate will be the rate borne by
debentures issued with respect to any insured loan or mortgage (except
for debentures issued pursuant to section 221(g)(4)) with insurance
commitment or endorsement date (as applicable) within the first 6
months of 2008.
For convenience of reference, HUD is publishing the following chart
of debenture interest rates applicable to mortgages committed or
endorsed since January 1, 1980:
------------------------------------------------------------------------
Effective interest rate on or after prior to
------------------------------------------------------------------------
9\1/2\........................ Jan. 1, 1980..... July 1, 1980
9\7/8\........................ July 1, 1980..... Jan. 1, 1981
11\3/4\....................... Jan. 1, 1981..... July 1, 1981
12\7/8\....................... July 1, 1981..... Jan. 1, 1982
12\3/4\....................... Jan. 1, 1982..... Jan. 1, 1983
10\1/4\....................... Jan. 1, 1983..... July 1, 1983
10\3/8\....................... July 1, 1983..... Jan. 1, 1984
11\1/2\....................... Jan. 1, 1984..... July 1, 1984
13\3/8\....................... July 1, 1984..... Jan. 1, 1985
11\5/8\....................... Jan. 1, 1985..... July 1, 1985
11\1/8\....................... July 1, 1985..... Jan. 1, 1986
10\1/4\....................... Jan. 1, 1986..... July 1, 1986
8\1/4\........................ July 1, 1986..... Jan. 1, 1987
8............................. Jan. 1, 1987..... July 1, 1987
9............................. July 1, 1987..... Jan. 1, 1988
9\1/8\........................ Jan. 1, 1988..... July 1, 1988
9\3/8\........................ July 1, 1988..... Jan. 1, 1989
9\1/4\........................ Jan. 1, 1989..... July 1, 1989
9............................. July 1, 1989..... Jan. 1, 1990
8\1/8\........................ Jan. 1, 1990..... July 1, 1990
9............................. July 1, 1990..... Jan. 1, 1991
8\3/4\........................ Jan. 1, 1991..... July 1, 1991
8\1/2\........................ July 1, 1991..... Jan. 1, 1992
8............................. Jan. 1, 1992..... July 1, 1992
8............................. July 1, 1992..... Jan. 1, 1993
7\3/4\........................ Jan. 1, 1993..... July 1, 1993
7............................. July 1, 1993..... Jan. 1, 1994
6\5/8\........................ Jan. 1, 1994..... July 1, 1994
7\3/4\........................ July 1, 1994..... Jan. 1, 1995
8\3/8\........................ Jan. 1, 1995..... July 1, 1995
7\1/4\........................ July 1, 1995..... Jan. 1, 1996
6\1/2\........................ Jan. 1, 1996..... July 1, 1996
7\1/4\........................ July 1, 1996..... Jan. 1, 1997
6\3/4\........................ Jan. 1, 1997..... July 1, 1997
7\1/8\........................ July 1, 1997..... Jan. 1, 1998
[[Page 7756]]
6\3/8\........................ Jan. 1, 1998..... July 1, 1998
6\1/8\........................ July 1, 1998..... Jan. 1, 1999
5\1/2\........................ Jan. 1, 1999..... July 1, 1999
6\1/8\........................ July 1, 1999..... Jan. 1, 2000
6\1/2\........................ Jan. 1, 2000..... July 1, 2000
6\1/2\........................ July 1, 2000..... Jan. 1, 2001
6............................. Jan. 1, 2001..... July 1, 2001
5\7/8\........................ July 1, 2001..... Jan. 1, 2002
5\1/4\........................ Jan. 1, 2002..... July 1, 2002
5\3/4\........................ July 1, 2002..... Jan. 1, 2003
5............................. Jan. 1, 2003..... July 1, 2003
4\1/2\........................ July 1, 2003..... Jan. 1, 2004
5\1/8\........................ Jan. 1, 2004..... July 1, 2004
5\1/2\........................ July 1, 2004..... Jan. 1, 2005
4\7/8\........................ Jan. 1, 2005..... July 1, 2005
4\1/2\........................ July 1, 2005..... Jan. 1, 2006
4\7/8\........................ Jan. 1, 2006..... July 1, 2006
5\3/8\........................ July 1, 2006..... Jan. 1, 2007
4\3/4\........................ Jan. 1, 2007..... July 1, 2007
5............................. July 1, 2007..... Jan. 1, 2008
4\1/2\........................ Jan. 1, 2008..... July 1, 2008
------------------------------------------------------------------------
Section 215 of Division G, Title II of Pub. L. 108-199, enacted
January 23, 2004 (HUD's 2004 Appropriations Act) amended section 224 of
the Act, to change the debenture interest rate for purposes of
calculating certain insurance claim payments made in cash. Therefore,
for all claims paid in cash on mortgages insured under section 203 or
234 of the National Housing Act and endorsed for insurance after
January 23, 2004, the debenture interest rate will be the monthly
average yield, for the month in which the default on the mortgage
occurred, on United States Treasury Securities adjusted to a constant
maturity of 10 years, as found in Federal Reserve Statistical Release
H-15. The Federal Housing Administration has codified this provision in
HUD regulations at 24 CFR 203.405(b) and 24 CFR 203.479(b).
Section 221(g)(4) of the Act provides that debentures issued
pursuant to that paragraph (with respect to the assignment of an
insured mortgage to the Secretary) will bear interest at the ``going
Federal rate'' in effect at the time the debentures are issued. The
term ``going Federal rate'' is defined to mean the interest rate that
the Secretary of the Treasury determines, pursuant to a statutory
formula based on the average yield on all outstanding marketable
Treasury obligations of 8-to 12-year maturities, for the 6-month
periods of January through June and July through December of each year.
Section 221(g)(4) is implemented in the HUD regulations at 24 CFR
221.255 and 24 CFR 221.790.
The Secretary of the Treasury has determined that the interest rate
to be borne by debentures issued pursuant to section 221(g)(4) during
the 6-month period beginning January 1, 2008, is 4\1/8\ percent.
HUD expects to publish its next notice of change in debenture
interest rates in July 2008.
The subject matter of this notice falls within the categorical
exemption from HUD's environmental clearance procedures set forth in 24
CFR 50.19(c)(6). For that reason, no environmental finding has been
prepared for this notice.
(Authority: Sections 211, 221, 224, National Housing Act, 12 U.S.C.
1715b, 1715l, 1715o; Section 7(d), Department of HUD Act, 42 U.S.C.
3535(d).)
Dated: February 1, 2008.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. E8-2514 Filed 2-8-08; 8:45 am]
BILLING CODE 4210-67-P
