[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1737.71]

[Page 338]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1737--PRE-LOAN POLICIES AND PROCEDURES COMMON TO INSURED AND GUARANTEED TELECOMMUNICATIONS LOANS--Table of Contents
 
             Subpart H--Feasibility Determination Procedures
 
Sec. 1737.71  Interest rate to be considered for the purpose of assessing feasibility for loans.

    (a) For purposes of determining the creditworthiness of a borrower 
for concurrent RUS cost-of-money and RTB loans, the Administrator shall 
assume that the loans, if made, would bear interest at the Treasury rate 
on the date of determination as described in paragraph (b) of this 
section. If the Treasury rate exceeds 7 percent, the interest rate used 
to determine eligibility for the RUS cost-of-money loan will be 7 
percent.
    (b) The 30-year Treasury rate will be used in all feasibility 
studies for loans with a final maturity of at least 30 years. A 
straight-line interpolation between other Treasury rates will be used to 
determine the rate used in feasibility studies for loans with final 
maturities of less than 30 years.
    (c) The Treasury rate will be obtained each Tuesday, or as soon as 
possible thereafter, from the Federal Reserve. The rate for the current 
week, from the column labeled ``This week'' in the Federal Reserve 
statistical release, will be used from that Wednesday through the 
following Tuesday.
    (d) As used in this section, the ``date of determination'' means the 
date of the feasibility study used in support of the loan 
recommendation.

[58 FR 66257, Dec. 20, 1993]