Laserfiche WebLink
<br />5. The 30-year lending rate m~y 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 Boitfd may establish a lending rate somewhat <br />lower than the adopted rate :for the particular class of borrower. <br />7. For projects that include n10re than one purpose, a weighted average <br />lending rate will be established based on the percent of water supplied <br />, <br />or on the percent ownership for each particular purpose of the project. <br /> <br />PURPOSE: To establish an annual lending rate structure for Construction Fund and <br />Severance Tax Trust Fund Perpetual Base Account loans. <br /> <br />APPLICABILITY: This policy and procedure ap~ly to all applications for loans from the <br />CWCB Construction Fund anq Severance Tax Trust Fund Perpetual Base <br />Account. <br /> <br />PROCEDURE: <br /> <br />The CWCB staff will compile the closing weekly yields for the 30-year <br />"A" municipal bond for the ,six months preceding the May Board <br />meeting of eaeh year and es~imate the bond's average annual yield. A <br />lending rate structure will 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 base~ on this procedure will be effective for <br />Construction Fund and Severance Tax Trust Fund Perpetual Base Account <br />loan applications for the upcoming Fiscal Year and will be effective <br />July 1 through the following June 30. <br /> <br />>I< 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 som~what more susceptible to the adverse effects <br />of changes in circumstances and economic condition~ than debt in higher rated categories," <br /> <br />Approved by the CWCB <br />January 27, 1999 Board Meeting <br />Agenda Item #1 Oc <br /> <br />. I <br />t <br /> <br /> <br />e <br /> <br />e <br /> <br />.e <br />