Interest Rates, 18679 [2016-07313]
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Federal Register / Vol. 81, No. 62 / Thursday, March 31, 2016 / Notices
accordance with the standing
instructions of the portfolio managers or
such remaining amounts will be
invested directly by the portfolio
managers of the Funds.
13. The Interfund Lending Committee
will monitor the Interfund Loan Rate
and the other terms and conditions of
the Interfund Loans and will make a
quarterly report to the Trustees of each
Fund concerning the participation of the
Funds in the proposed credit facility
and the terms and other conditions of
any extensions of credit under the credit
facility.
14. The Trustees of each Fund,
including a majority of the Independent
Trustees, will:
(a) Review, no less frequently than
quarterly, the Fund’s participation in
the proposed credit facility during the
preceding quarter for compliance with
the conditions of any order permitting
such transactions;
(b) establish the Bank Loan Rate
formula used to determine the interest
rate on Interfund Loans and review, no
less frequently than annually, the
continuing appropriateness of the Bank
Loan Rate formula; and
(c) review, no less frequently than
annually, the continuing
appropriateness of the Fund’s
participation in the proposed credit
facility.
15. If an Interfund Loan is not paid
according to its terms and such default
is not cured within two business days
from its maturity or from the time the
lending Fund makes a demand for
payment under the provisions of the
Interfund Lending Agreement, the
Adviser will promptly refer such loan
for arbitration to an independent
arbitrator selected by the Trustees of
each Fund involved in the loan who
will serve as arbitrator of disputes
concerning Interfund Loans.2 The
arbitrator will resolve any problem
promptly, and the arbitrator’s decision
will be binding on both Funds. The
arbitrator will submit, at least annually,
a written report to the Trustees setting
forth a description of the nature of any
dispute and the actions taken by the
Funds to resolve the dispute.
16. Each Fund will maintain and
preserve for a period of not less than six
years from the end of the fiscal year in
which any transaction by it under the
proposed credit facility occurred, the
first two years in an easily accessible
place, written records of all such
transactions setting forth a description
2 If the dispute involves Funds with different
Trustees, the respective Trustees of each Fund will
select an independent arbitrator that is satisfactory
to each Fund.
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of the terms of the transactions by the
Fund, including the amount, the
maturity and the Interfund Loan Rate,
the rate of interest available at the time
each Interfund Loan is made on
overnight repurchase agreements and
commercial bank borrowings, the yield
of any money market fund in which the
lending Fund could otherwise invest,
and such other information presented to
the Fund Trustees in connection with
the review required by conditions 13
and 14.
17. The relevant Adviser will prepare
and submit to the Trustees for review an
initial report describing the operations
of the proposed credit facility and the
procedures to be implemented to ensure
that all Funds are treated fairly. After
the commencement of the proposed
credit facility, the relevant Adviser will
report on the operations of the proposed
credit facility at each of the Trustees’
quarterly meetings.
Each Fund’s chief compliance officer,
as defined in rule 38a–1(a)(4) under the
Act, shall prepare an annual report for
its Trustees each year that the Fund
participates in the proposed credit
facility, that evaluates the Fund’s
compliance with the terms and
conditions of the application and the
procedures established to achieve such
compliance. Each Fund’s chief
compliance officer will also annually
file a certification pursuant to Item
77Q3 of Form N–SAR as such Form may
be revised, amended or superseded from
time to time, for each year that the Fund
participates in the proposed credit
facility, that certifies that the Fund and
its Adviser have established procedures
reasonably designed to achieve
compliance with the terms and
conditions of the order. In particular,
such certification will address
procedures designed to achieve the
following objectives:
(a) That the Interfund Loan Rate will
be higher than the Repo Rate and, if
applicable, the yield of the money
market funds, but lower than the Bank
Loan Rate;
(b) compliance with the collateral
requirements as set forth in the
application;
(c) compliance with the percentage
limitations on interfund borrowing and
lending;
(d) allocation of interfund borrowing
and lending demand in an equitable
manner and in accordance with
procedures established by the Trustees;
and
(e) that the Interfund Loan Rate does
not exceed the interest rate on any third
party borrowings of a borrowing Fund at
the time of the Interfund Loan.
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18679
Additionally, each Fund’s
independent public accountants, in
connection with their audit examination
of the Fund, will review the operation
of the proposed credit facility for
compliance with the conditions of the
application and their review will form
the basis, in part, of the auditor’s report
on internal accounting controls in Form
N–SAR.
18. No Fund will participate in the
proposed credit facility upon receipt of
requisite regulatory approval unless it
has fully disclosed in its prospectus
and/or statement of additional
information all material facts about its
intended participation.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Brent J. Fields,
Secretary.
[FR Doc. 2016–07193 Filed 3–30–16; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Interest Rates
The Small Business Administration
publishes an interest rate called the
optional ‘‘peg’’ rate (13 CFR 120.214) on
a quarterly basis. This rate is a weighted
average cost of money to the
government for maturities similar to the
average SBA direct loan. This rate may
be used as a base rate for guaranteed
fluctuating interest rate SBA loans. This
rate will be 2.25 percent for the April–
June quarter of FY 2016.
Pursuant to 13 CFR 120.921(b), the
maximum legal interest rate for any
third party lender’s commercial loan
which funds any portion of the cost of
a 504 project (see 13 CFR 120.801) shall
be 6% over the New York Prime rate or,
if that exceeds the maximum interest
rate permitted by the constitution or
laws of a given State, the maximum
interest rate will be the rate permitted
by the constitution or laws of the given
State.
Dianna L. Seaborn,
Acting Director, Office of Financial
Assistance.
[FR Doc. 2016–07313 Filed 3–30–16; 8:45 am]
BILLING CODE P
SMALL BUSINESS ADMINISTRATION
Annual Meeting of the Regional Small
Business Regulatory Fairness Boards
Office of the National Ombudsman
U.S. Small Business
Administration (SBA).
AGENCY:
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31MRN1
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[Federal Register Volume 81, Number 62 (Thursday, March 31, 2016)]
[Notices]
[Page 18679]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07313]
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SMALL BUSINESS ADMINISTRATION
Interest Rates
The Small Business Administration publishes an interest rate called
the optional ``peg'' rate (13 CFR 120.214) on a quarterly basis. This
rate is a weighted average cost of money to the government for
maturities similar to the average SBA direct loan. This rate may be
used as a base rate for guaranteed fluctuating interest rate SBA loans.
This rate will be 2.25 percent for the April-June quarter of FY 2016.
Pursuant to 13 CFR 120.921(b), the maximum legal interest rate for
any third party lender's commercial loan which funds any portion of the
cost of a 504 project (see 13 CFR 120.801) shall be 6% over the New
York Prime rate or, if that exceeds the maximum interest rate permitted
by the constitution or laws of a given State, the maximum interest rate
will be the rate permitted by the constitution or laws of the given
State.
Dianna L. Seaborn,
Acting Director, Office of Financial Assistance.
[FR Doc. 2016-07313 Filed 3-30-16; 8:45 am]
BILLING CODE P
