INTEREST RATE CREDIT

SHORT-TERM LOAN INTEREST CREDIT

The Interest Rate Credit initiative is designed to encourage timely submissions while providing borrowers with savings above and beyond the I-Bank’s already low short-term interest rates. Borrowers who submit their requisitions on a timely basis will receive a partial interest credit that reduces the overall interest cost of their short-term loan during their projects’ design and construction phases.

INTEREST CREDIT COMPUTATION METHODOLOGY

The I-Bank is setting a requisition goal for each project based on an evaluation of the dollar amount of requisitions for the project at the beginning of each six-month period over a five-year term. To qualify for the Interest Rate Credit, cumulative requisitions on March ^1st and September ^1st of each year ("Period Start Dates") must equal or exceed 10% times the number of Period Start Dates for which the loan has been outstanding. Qualification is evaluated on each Period Start Date and is applied for the entirety of the semi-annual period. Every short-term loan will receive the Interest Rate Credit from the date of closing to the first Period Start Date. See hypothetical example: