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<br />. <br /> <br />. <br /> <br />. <br /> <br />4. Colorado's fanns and ranches are irreplaceable resourc'es providing <br />food, fiber, open space, wildlife habitat, stable economies in rural areas <br />and many other benefits. Because Colorado canrtot afford to lose these <br />resources to urbanization and other growth-related factors, the <br />Agricultural Rate will be calculated as 50 percent of the Baseline Rate <br />rounded to the nell1'est one-quarter of one percent. <br />5. The 30-year lending rate may be reduced for each lending category by <br />one-quarter of one percent for all loans with maturities of 20 years or <br />less but more than 10 years and by one-half of one percent for all loans <br />with maturities of 10 years or less. <br />6. For specific projects that involve matters of statewide concern, such as <br />interstate compacts, the Board may establish a lending rate somewhat <br />lower than the adopted rate for the particular class of borrower. <br />7. For projects that include more than one pmpose, a weighted average II <br />lending rate will be established based on the percent of water supplied <br />or on the percent ownership for each particular purpose of the project. <br /> <br />PURPOSE: <br /> <br />To establish an annulil lending rate structure for Construction Fund and <br />Severance Tax Trust Fund Perpetual Base Account loans. <br /> <br />APPLICABILITY: <br /> <br />This policy and procedure apply to all applications for loans from the <br />CWCB Construction fund and Severance Tax Trust Fund Perpetual Base <br />Account. <br /> <br />PROCEDu:RE: <br /> <br />The CWCB staff'will compile the closing weekly yields for the 3D-year <br />"A" rated municipal bond for the six months preceding the May Board <br />meeting 'of each year and estimate the bond's average annual yield. A <br />lending rate structure vrill then be developed as outlined above and will be <br />presented to the CWCB at the May Board meeting of each year. The <br />interest rates calculated based on this procedure will be effective for <br />Constructionllund and Severance Tax Trust Fund Perpetual Base Account <br />loan applications for the upcoming Fiscal Year and will be effective July 1 <br />through the following rune 30. <br /> <br />* Standard and Poor's definition of an "A" bond rating is: "A debt rated 'A' has a strong capacity <br />to pay interest and repay principal although it is somewhat more susceptible to the adverse effects <br />of changes in circumstances and economic COjIditions than debt in higher rated categories." <br /> <br />Approved by tbe CWCB <br />November 20,2001 Board Meeting <br />Agenda Item #19a <br />