| For
loans issued during state fiscal year 2007 the interest rate DEQ
will charge for loans awarded for water pollution control and drinking
water projects will be determined as follows:
The interest
rate for the following State fiscal year will be 75% of the "State
and local bonds" entry reported in "Federal Statistical
Release, H.15," lowered to the nearest quarter percent. This
entry is quoted by the Federal Reserve from the "Bond Buyer
Index" for general obligation bonds (20 years to maturity,
mixed quality). For FY2007 the rate for all loans from the Water
Pollution Control Loan Account will be 3.25% except loans to the
Idaho Soil Conservation Commission, which will be at 2.0%. On loans closed after January 4, 2006 and June 30, 2006 (i.e. for the remainder of FY2006 and for the entirety of FY2007) there will be a loan fee of 1.0% assessed on the declining balance of the new loans issued. To the extent that fees are assessed the interest rate will be reduced by the same percent; e.g. a standard loan with a 1% fee will have a 2.25% interest rate.
For FY2007
the rate for loans from the Drinking Water Loan Account will be
3.25% except that portions of projects that are being constructed
solely to comply with federal rules imposed by the Safe Drinking
Water Act will be 2.0%. In those cases, the interest rate will
be blended between the two rates. The actual loan rate will be
determined at the time the loan is awarded. Projects that are
consolidating one or more public water systems will also be eligible
for 2.0% loans.
These rates
are subject to available funds and only apply to the fiscal year/s mentioned.
The interest rate may be adjusted if it is determined that the rate
of inflation is higher than the interest rate charged, thereby causing
the loan funds to lose purchasing power. |
