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<br />Although not formally adopted as 3.standard policy, every year since 1995 the Board has adopted . <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 lass than the high-income nlte 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 /> <br />Discussion <br /> <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 /> <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 /> <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 />to replace the current language in Section 1.3.2 of the Guidelines. <br /> <br />Attachments (4) <br /> <br />L:\BOARDMEM\JAN99\lOc - Revisions.doc <br /> <br />< < <br /> <br />. <br /> <br />2 <br />