Page:United States Statutes at Large Volume 101 Part 2.djvu/817

 PUBLIC LAW 100-203—DEC. 22, 1987

101 STAT. 1330-23

penalty set forth in the note covering such loan, if such prepayment is not made later than September 30, 1988.". (2) PREPAYMENT REGULATIONS.—The Governor of the Rural Telephone Bank shall issue regulations to carry out the amendment made by paragraph (1) within 30 days after the date of enactment of this Act. Such regulations shall implement the amendment made by paragraph (1) without the addition of any restrictions not set forth in such amendment. (c) DETERMINATION OF INTEREST RATES ON RURAL TELEPHONE BANK

LOANS.—Paragraph (3) of section 4080t)) of the Rural Electrification Act of 1936 (7 U.S.C. 948(b)(3)) is amended— (1) by inserting "(A)" after the paragraph designation; and (2) by adding at the end thereof the following new subparagraphs: "(B) On and after the date of the enactment of this paragraph, advances made on or after such date of enactment under loan commitments made on or after October 1, 1987, shall bear interest at the rate determined under subparagraph (C), but in no event at a rate that is less than 5 percent per annum. "(C) The rate determined under this subparagraph shall be— "(i) for the period beginning on the date the advance is made and ending at the close of the fiscal year in which the advance is made, the average yield (on the date of the advance) on outstanding marketable obligations of the United States having a final maturity comparable to the final maturity of the advance; and "(ii) after the fiscal year in which the advance is made, the cost of money rate for such fiscal year, as determined under subparagraph (D). "(D) Within 30 days after the end of each fiscal year, the Governor shall determine to the nearest 0.01 percent the cost of money rate for the fiscal year, by calculating the sum of the resultis of the following calculations: "(i) The aggregate of all amounts received by the telephone bank during the fiscal year from the issuance of class A stock, multiplied by the rate of return payable by the telephone bank during the fiscal year, as specified in section 406(c), to holders of class A stock, which product is divided by the aggregate of the amounts advanced by the telephone bank during the fiscal year. "(ii) The aggregate of all amounts received by the telephone bank during the fiscal year from the issuance of class B stock, multiplied by the rate at which dividends are payable by the telephone bank during the fiscal year, as specified in section 406(d), to holders of class B stock, which product is divided by the aggregate of the amounts advanced by the telephone bank during the fiscal year. "(iii) The aggregate of all amounts received by the telephone bank during the fiscal year from the issuance of class C stock, multiplied by the rate at which dividends are payable by the telephone bank during the flsc£d year, under section 406(e), to holders of class C stock, which product is divided by the aggregate of the amounts advanced by the telephone bank during the fiscal year. "(ivXD The sum of the results of the calculations described in subclause (II).

7 USC 948 note.

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