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0 <br /> • <br /> Although not formally adopted as a.standard policy, every year since 1995 the Board has adopted ip <br /> the staff recommendation to set the standard, municipal low income, agricultural, and <br /> commercial/industrial lending rates at essentially the same relative differences. The standard rate <br /> is 10 percent less than the high-income rate while the low income and agricultural rates are 20 <br /> percent less than the standard rate. The commercial/industrial rate is set at about 20 percent <br /> higher than the standard rate. Also, the. Board has annually adopted a policy of reducing the <br /> interest rates for loans with repayment periods less than the standard 30-year period. <br /> Discussion <br /> A copy of the revised Lending Policy which incorporates the formally adopted policy changes in <br /> the Jan 95 and Nov 97 memos to the Aug 94 Guidelines is attached for your information and <br /> review. Policy changes annually adopted by the Board have been incorporated and shown in bold <br /> type in the attachment. <br /> In compiling these documents into one document I have used my best judgment, and some editorial <br /> changes have occurred. To the best of my ability, it is a faithful representation in one place of the <br /> Board's formally adopted rate setting policy. <br /> Recommendation . <br /> • <br /> Staff recommends that the Board review the attached consolidated statement of the rate setting • <br /> aspect of the Board's lending policy, and pending any further revisions, direct the staff to use it <br /> Tjdto replace the current language in Section 1.3.2 of the Guidelines. <br /> Attachments (4) L:\BOARDMEMUAN99\10c-Revisions.doc <br /> 2 <br /> • <br />