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FEDERAL RESERVE BANK OF DALLAS
F IS C A L A G E N T O F T H E C O M M O D IT Y C R E D IT C O R P O R A T IO N

Dallas, Texas, July 26, 1966

OFFERING OF
COMMODITY CREDIT CORPORATION
CERTIFICATES OF INTEREST

To All Banking Institutions
in the Eleventh Federal Reserve District:

There is quoted below a press statement issued today by the United States Department of Agriculture
in regard to an offering of new certificates of interest in a 1966 Crop Year loan pool and an increase in the
rate of interest payable on certificates of interest:
The U. S. Department of Agriculture today announced that at maturity date of August 1,
1966, holders of certificates of interest in 1965 Crop Year loan pools may elect to receive in
lieu of cash, new certificates of interest in a 1966 Crop Year loan pool in an amount up to the
face value of the certificates of interest maturing on August 1, 1966.
The rate of interest payable on certificates of interest issued to banks and other lending
institutions participating in the financing of price support loans will be increased from 4.90 to
5.2 percent per annum, effective August 1, 1966.
The increase is in line with recent changes in the money market and is being made to
encourage continued participation by private lenders in the financing of Commodity Credit
Corporation loan programs, USDA officials said.
If the holder requests 1966-Crop certificates of interest in an amount that is less than the
face value of the matured 1965-Crop certificates of interest, he will be paid in cash for the
difference. All interest earned on the certificates of interest maturing on August 1, 1966 will be
paid in cash.
1966-Crop certificates of interest will be issued upon presentation of the cotton certificates
of interest (Forms CCC 816 and 817) which mature on August 1, 1966, to the New Orleans
ASCS Commodity Office, and the grain and related commodities certificates of interest (Forms
CCC 514 and 515) which mature August 1, 1966, to the Kansas City ASCS Data Processing
Center.
1966-Crop certificates issued for 1965-Crop certificates will be dated August 1, 1966 and
will earn interest from that date. These certificates will mature August 1, 1967 but will be payable
upon demand.
This option does not apply to the Special Certificates of Interest sold through competitive
bids on April 6, 1966. Such certificates will be redeemed for cash on August 1, 1966.
Notice of appropriate changes in the regulations is expected to be published in the Federal
Register of July 28, 1966.
Yours very truly,
Watrous H. Irons
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)


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