Current through Reg. 49, No. 38; September 20, 2024
For loans from the SWIFT and SWIRFT, the following
procedures will be used to set interest rates.
(1) The executive administrator will set
interest rates under this section for loans on a date that is at least five
business days prior to the political subdivision's anticipated adoption of the
ordinance or resolution authorizing its bonds and not more than 45 days before
the anticipated closing of the loan from the board. After 45 days from the
establishment of the interest rate of a loan, rates will be reconsidered, and
may be extended only with the approval of the executive
administrator.
(2) For loans from
the fund, the executive administrator will set the interest rates in accordance
with the following:
(A) To the extent that
the source of funding is provided from bond proceeds, the lending rate scale(s)
will be determined as provided under §
363.33(b)
of this title (relating to Interest Rates for Loans and Purchase of Board's
Interest in State Participation Projects).
(B) The loan interest rate will be determined
based on a debt service schedule acceptable to the executive administrator. The
executive administrator will identify the appropriate scale for the borrower
and identify the market rate for the maturity due in each year. The board may
set an interest rate subsidy. The executive administrator will reduce the
market rate by a subsidy as determined by the board and thereby identify a
proposed loan interest rate for each maturity. The proposed loan interest rate
will be applied to the proposed principal repayment schedule. In no instance
shall the subsidy determined by the board exceed 50 percent of the market
rate.
(C) For loans made under
§
363.1305(a)(4)
of this subchapter (relating to Use of Funds), which receive deferred principal
and interest payments, the executive administrator will identify the
appropriate scale for the borrower and identify the market rate for the
maturity due in each year. The board may set an interest rate subsidy. The
executive administrator will reduce the market rate by a subsidy as determined
by the board and thereby identify a proposed loan interest rate for each
maturity. The proposed loan interest rate will be applied to the proposed
principal repayment schedule.
