Interest rate term.

CFR · 2024-01-01 · US · Title 7

(a) (1) The initial interest rate term will begin on the date of the advance. All rollover interest rate terms will begin on the first day of a month, and except for the last interest rate term to final maturity, shall end on the last day of a month. All terms except for the initial interest rate term on an advance, and the last term to final maturity shall be in yearly increments. (2) The following limits apply to the number of advances of funds that may be made to the borrower on any municipal rate loan: (i) If the loan period is 2 years or less, not more than 6 advances; (ii) If the loan period is more than 2 years, not more than 8 advances. (3) For the initial interest rate term of an advance, a letter from an authorized official of the borrower indicating the selection of the term shall accompany the request for the advance. (4) At the end of any interest rate term, the borrower shall pay all accrued interest and principal balance then due, and either prepay the remaining principal of the advance at face value, or roll over the remaining principal for a new term, provided that no interest rate term may end later than the date of the final maturity. (i) If the borrower elects to prepay all or part of the remaining principal of the advance at face value, it must notify the Director of the appropriate Regional Division or the Power Supply Division in writing not later than 20 days before the rollover maturity date. (ii) If the borrower wishes to elect a new interest rate te

official document · source cfr-2024 · id 7:§ 1714.6