Philippines - Third Industrial Investment Project : Loan 1572 - Loan Agreement - Conformed

CONFORMED COPY LOAN NUMBER 1572 PH Loan Agreement (Third Industrial Investment Project) between REPUBLIC OF THE PHILIPPINES and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated June 6, 1978 LOAN NUMBER 1572 PH LOAN AGREEMENT AGREEMENT, dated June 6, 1978, between REPUBLIC OF THE PHILIPPINES (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). WHEREAS (A) the Borrower has requested the Bank to assist in the financing of the Project described in Section 3.01 of this Agreement by extending the Loan as hereinafter provided; (B) the Project will be carried out by DBP with the Bor- rower's assistance, and as part of such assistance, the Borrower will make available to the DBP the proceeds of the Loan as herein- after provided; and (C) the Bank is willing to make the Loan available upon the terms and conditions set forth hereinafter and in the Project Agreement of even date herewith between the Bank and the DBP; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guarantee Agreements of the Bank, dated March 15, 1974, with the same force and effect as if they were fully set forth herein, subject, however, to the following modifications thereof (said General Conditions Applicable to Loan and Guarantee Agreements of the Bank, as so modified, being hereinafter called the General Conditions): (a) The following subparagraph is added to Section 2.01: "19. The term 'Project Agreement' has the meaning set forth in paragraph (b) of Section 1.02 of the Loan Agree- ment." (b) The following subparagraph (d) is added to Section 3.05: "(d) The Bank and the Borrower may from time to time agree upon arrangements for prepayment of the Loan and the -2- application of such prepayment in addition to, or in snbsti- tution for, those set forth in paragraph (b) of Section 3.05." (c) The words "Investment Projects" are substituted for the words "the Project" at the end of Section 5.03. (d) Section 6.03 is deleted and replaced by the following new Section: "Section 6.03. Cancellation by the Bank. If (a) the right of the Borrower to make withdrawals from the Loan Account shall have been suspended with respect to any amount of the Loan for a continuous period of thirty days or (b) by the date specified in Section 2.02 (d) of the Project Agree- ment no applications for approval or requests for authori- zation to withdraw from the Loan Account in respect of any portion of the Loan shall have been received by the Bank, or having been so received, shall have been denied or (c) after the Closing Date an amount of the Loan shall remain unwith- drawn from the Loan Account, the Bank may, by notice to the Borrower, terminate the right to request such approvals and authorizations or to make withdrawals from the Loan Account, as the case may be, with respect to such amount or portion of the Loan. Upon the giving of such notice such amount or portion of the Loan shall be cancelled." (e) The words "the Project Agreement" are substituted for the words "the Guarantee Agreement" in Section 6.06; and (f) The words "Project Agreement" are substituted for the words "Guarantee Agreement" in Section 10.03. Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "DBP" means Development Bank of the Philippines, a development bank established and operating under the laws of the Borrower. (b) "Project Agreement" means the agreement of even date herewith between the Bank and DBP, as such agreement may be amended from time to time. -3- (c) "Subsidiary Loan Agreement" means the agreement to be entered into between the Borrower and DBP pursuant to Section 3.01 (b) of this Agreement. (d) "Sub-loan" means a loan or credit made or proposed to be made by DBP to an Investment Enterprise for an Investment Project out of the proceeds of the Loan relent to DBP under the Subsidiary Loan Agreement, and "free-limit Sub-loan" means a Sub-loan, as so defined, which qualifies as a free-limit Sub-loan pursuant to the provisions of Section 2.02 (b) of this Agreement. (e) "Investment" means an investment other than a Sub-loan, made or proposed to be made by DBP in an Investment Enterprise for an Investment Project out of the proceeds of the Loan relent to DBP under the Subsidiary Loan Agreement. (f) "Investment Enterprise" means an enterprise to which DBP proposes to make or has made a Sub-loan or in which it proposes to make :r has made an Investment. (g) "Investment Project" means a specific development project to be carried out by an Investment Enterprise utilizing the proceeds of a Sub-loan or Investment. (h) "peso" means the currency of the Borrower. (i) "foreign currency" means any currency other than the currency of the Borrower. (j) "Charter" means the charter of DBP as provided in RA 2081, dated June 14, 1958, as amended to the date of this Agree- ment. (k) "Statement of Operating Policies and Procedures for Medium- and Large-Scale Industrial Financing" means the statement of financing policy for projects in the industrial sector approved by the Board of Governors of DBP on May 29, 1974. (1) "Statement of Reserve Policy" means the statement of DBP's reserves policy approved by the Board of Governors of DBP on January 21, 1976. (m) "Prior Loan Agreement" means any loan agreement between the Borrower and the Bank dated before the date of this Agreement and "Prior Loan" means the loan provided for therein. (n) "Subsidiary" means any company of which a majority of the outstanding voting stock or other proprietary interest is owned or effectively controlled by DBP or by any one or more subsidiaries of DBP or by DBP and one or more of its subsidiaries. (o) "small industry" means an industrial enterprise with total fixed assets (including land) estimated to be worth not less than 100,000 pesos and not more than 1,000,000 pesos. (p) "medium industry" means an industrial enterprise with total fixed assets (including land) estimated to be worth more than 1,000,000 pesos but not more than 4,000,000 pesos. ARTICLE II The Loan Section 2.01, The Bank agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or referred to, an amount in various currencies equivalent to eighty million dollars ($80,000,000), for use by DBP. Section 2.02. (a) Subject to the provisions of paragraphs (b), (c) and (d) of this Section, DBP, on behalf of the Borrower pursuant to Section 2.03 of this Agreement, may withdraw from the Loan Account the equivalent of amounts paid (or, if the Bank shall so agree, amounts to be paid) by the Borrower on account of withdrawals made by an Investment Enterprise under a Sub-Loan or Investment or by DBP under Part C of the Project to meet: (A) Under Part A of the Project: (i) one hundred per cent (100%) of the cost of directly imported goods and services, and seventy per cent (70%) of the cost of imported goods procured locally, required for the Investment Project in respect of which the withdrawal is requested; (ii) fifty per cent (50%) of the invoiced price paid for goods purchased as set forth in paragraph (c) (ii) of this Section; (iii) forty-five per cent (45%) of the cost of con- struction works included in such Investment Projects; -5- (B) Under Part B of the Project: seventy-five per cent (75%) of amounts dis- bursed under Sub-loans; (C) Under Part C of the Project: (i) one hundred per cent (100%) of the cost of directly imported goods and services, and seventy per cent (70%) of the cost of imported goods procured locally, required for the development banking institute in respect of which the withdrawal is requested; (ii) fifty per cent (50%) of the invoiced price paid for goods purchased as set forth in paragraph (c) (ii) of this Section; (iii) the cost of consultant services; provided, however, that no amount shall be withdrawn from the Loan Account in respect of Part A of the Project unless (A) the Sub-loan or Investment for such Investment Project shall have been approved by the Bank or (B) the Sub-loan shall be a free-limit Sub-loan for which the Bank shall have authorized withdrawals from the Loan Account, and, further provided, however that no amount shall be withdrawn from the Loan Account in respect of Part C of the Project unless such withdrawal shall have been approved by the Bank. (b) (i) With respect to Part A of the Project, a Sub-loan shall not, when added to the outstanding principal amount of all other Sub-loans made for the same Investment Project, exceed in the aggregate the equivalent of $6,000,000. (ii) With respect to Part A of the Project, a free-limit Sub-loan shall be a Sub-loan for an Investment Project in an amount to be financed under the Loan Agreement which, together with any other amount or amounts previously financed for the same Investment Project under the Loan Agreement or under the Prior Loan Agreements, and not repaid or cancelled, shall not exceed in the aggregate the equivalent of $1,500,000. - 6 - (iii) With respect to Part B of the Project, a Sub-loan for an Investment Project shall not be less than the equivalent of 50,000 pesos or exceed 2,500,000 pesos, when added to the outstanding principal amount of all other Sub-loans made for the same Investment Project. (iv) With respect to Part B of the Project, Sub-loans for Investment Projects located in the Metro-Manila area shall not in the aggregate exceed 10% in value of the total amount of all the Sub-loans under Part B of the Project to be financed under the Loan Agreement. For this purpose, a Sub-loan shall mean a Sub-loan for an Investment Project in an amount to be financed under the Loan Agreement which, together with any other amount or amounts pre- viously financed for the same Investment Project under the Loan Agreement or under the Prior Loan Agreements, and not repaid, exceeds 1,500,000 pesos. (c) Except as the Bank shall otherwise agree, withdrawals from the Loan Account may be made on account of expenditures in the currency of the Borrower only for: (i) goods previously imported into its territory through normal trade channels and from countries which are members of the Bank (er from Switzerland); (ii) goods produced in the territory of the Borrower to a substan- tial extent and purchased by Investment Enterprises to carry out Investment Projects; and (iii) construction works as described in subparagraph (A) (iii) of paragraph (a) of this Section. (d) Except as the Bank shall otherwise agree, no withdrawals shall be made on account of (i) expenditures made by an Investment Enterprise prior to the date of this Agreement or (ii) expendi- tures made in respect of a Sub-loan subject to the Bank's approval, or of an Investment, more than ninety days prior to the date on which the Bank shall have received the application and information required under Section 2.02 (b) of the Project Agree- ment or (iii) expenditures made in respect of a free-limit Sub- loan more than ninety days prior to the date on which the Bank shall have received the request and information required by Section 2.02 (c) of the Project Agreement. (e) Except as the Borrower and the Bank shall otherwise agree, the amount of the Loan withdrawn from the Loan Account: -7- (i) under Part A of the Project shall not exceed the equivalent of $50,000,000; (ii) under Part B of the Project shall not exceed the equivalent of $29,700,000; and (iii) under Part C of the Project shall not exceed the equivalent of $300,000. Section 2.03. DBP is designated as representative of the Borrower for the purposes of taking any action required or permitted to be taken under the provisions of Section 2.02 of this Agreement and Article V of the General Conditions. Section 2.04. The Closing Date shall be June 30, 1982 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower and DBP of such later date. Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. Section 2.06. The Borrower shall pay interest at the rate of seven and one-half per cent (7.50%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time. Section 2.07. Interest and other charges shall be payable semiannually on April 15 and October 15 in each year. Section 2.08. (a) The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedules set forth in Schedule 1 to this Agreement. The amortization schedule as it applied to Part A of the Project shall be amended from time to time by the Bank to the extent required to: (i) conform in relevant part substantially to the aggregate of the amortization schedules applicable to Sub-loans and the schedules of repayment to the Bank in respect of investments, which have been approved or authorized for withdrawals from the Loan Account under Section 2.02 of this Agreement and (ii) take into account any cancellation pursuant to Article VI of the General Conditions and any repayments made by the Borrower under Section 2.09 of this Agreement. Such amendments of the amortization schedule as it applies to Part A of the Project shall include amendments to the table of premiums on prepayment, if necessary. Repayments due - 8 - under Schedule 1 shall be made on April 15 and October 15 in each year. (b) The amortization schedule applicable to each Sub-loan and the schedule of repayment to the Bank in respect of each investment shall provide for an appropriate period of grace, and, unless the Bank and the Borrower shall otherwise agree (i) shall not extend beyond 15 years and 12 years, respectively, for Part A and Part B of the Project from the date of approval by the Bank of such Sub-loan or investment, or in the case of a free-limit Sub-loan, of authorization by the Bank to make with- drawals from the Loan Account in respect thereof, and (ii) shall provide for approximately equal semiannual, or more frequent, aggregate payments of principal and interest or approximately equal semiannual, or more frequent, payments of principal. (c) The Borrower shall transmit to the Bank, for its prior approval, any substantial changes proposed to be made by the Borrower in respect of the repayment provisions of any Sub-loan under Part A of the Project. Section 2.09. Unless the Bank and the Borrower shall other- wise agree: (a) If a Sub-loan or any part thereof under Part A of the Project shall be repaid to the Borrower in advance of maturity or if a Sub-loan or an investment or any part thereof shall be sold, transferred, assigned or otherwise disposed of for value by the Borrower, the Borrower shall promptly notify the Bank and shall repay to the Bank on the next following interest payment date, together with the premiums specified in Schedule 1 to this Agree- ment, the amount withdrawn from the Loan Account in respect of such Sub-loan or investment or part thereof and not theretofore repaid to the Bank. (b) Any amount so repaid by the Borrower shall be applied by the Bank as follows: (i) in the case of a Sub-loan, to the maturity or maturities of the Loan in amounts corresponding to the outstanding amounts of the maturity or maturities of the Sub-loan so repaid or disposed of, and (ii) in the case of an investment, pro rata to the maturity or maturities of the Loan reflecting amounts to be repaid on account of such investment. (c) Paragraph (b) of Section 3.05 of the General Conditions shall not apply to any repayment made under paragraph (a) of this Section. -9- ARTICLE III Description of the Project; Use of Proceeds of the Loan Section 3.01. (a) The Project consists of the financing of specific development projects by DBP through loans to and investments in productive enterprises in the Republic of the Philippines, in furtherance of the corporate purposes of DBP. It consists of the following: (i) Part A is the financing through industrial enter- prises other than small industries and medium industries of such specific industrial development projects in the manufacturing, ocean shipping, mining, tourism and agro-industries sectors as will contribute to the economic and social development of the country; (ii) Part B is a program of loans to small and medium industries; and (iii) Part C is a loan towards the establishment of a development banking institute by DBP for training of management and staff of development banking institutions. (b) The Borrower shall: (i) relend to DBP such amounts of the loan as shall be withdrawn from the Loan Account under Part A of the Project; (ii) relend to DBP the equivalent in pesos of such amounts as shall be withdrawn from the Loan Account under Part B of the Project; and (iii) relend to DBP the equivalent in pesos of such amounts of the Loan as shall be withdrawn from the Loan Account under Part C of the Project, all under terms and condi- tions satisfactory to the Bank. (c) The Borrower shall exercise its rights under the Sub- sidiary Loan Agreement in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan, and except as the Bank shall otherwise agree, the Borrower shall not assign, nor amend, abrogate or waive the Subsidiary Loan Agreement or any provision thereof. Section 3.02. The Borrower shall not take, or permit any of its political subdivisions, or any of its agencies or instru- mentalities, or any agency or instrumentality of any political - 10 - subdivision, to take any action which would prevent or materially interfere with the carrying out of the Project or the performance by DBP of any of its other obligations under the Project Agreement or the Subsidiary Loan Agreement, and shall take or cause to be taken all reasonable action which shall be required on its part in order to enable DBP to carry out the Project and to perform such other obligations. ARTICLE IV Other Covenants Section 4.01. (a) It is the mutual intention of the Borrower and the Bank that no other external debt shall enjoy any priority over the Loan by way of a lien on governmental assets. (b) To that end the Borrower (i) represents that at the date of this Agreement no lien exists on any governmental assets as security for any external debt except as otherwise disclosed in writing by the Borrower to the Bank, and (ii) undertakes that, except as the Bank shall otherwise agree, if any such lien shall be created, it will ipso facto equally and ratably, and at no cost to the Bank, secure the payment of the principal of, and interest and other charges on, the Loan and in the creation of any such lien express provision will be made to that effect. The Borrower shall promptly inform the Bank of the creation of any such lien. (c) The foregoing representation and undertaking shall not apply to: (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of such property; and (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date. As used in this Section, the term "governmental assets" means assets of the Borrower or of any agency of the Borrower including the Central Bank of the Philippines or any institution performing the functions of a central bank for the Borrower. (d) The Borrower further undertakes that, within the limits of the laws in force in its territories, it will make the forego- ing undertaking effective with respect to liens on the assets of its political subdivisions and their agencies, and to the extent that the Borrower is unable within the limits of the laws in force - 11 - in its territories to make this undertaking effective, the Bor- rower will give to the Bank an equivalent lien satisfactory to the Bank. Section 4.02. The Borrower shall take all necessary steps to: (a) increase the paid-up share capital of DBP to 4,000,000,000 pesos by 1981 or such later date as the Bank may otherwise agree; (b) assist DBP to raise additional long term capital from domestic and foreign markets and institutions, as DBP may need to meet its maturing obligations and to finance its long term lending and investmen.t operations; (c) assist DBP to liquidate, as soon as may be practicable, DBP's investments (equity and advances) in Food Terminal Incor- porated, National Steel Corporation and National Housing Corpora- tion; (d) cause, in the case of future loans to be made to meet specific priorities established by the Borrower but which do not meet DBP's financial and economic criteria, that such loans shall be made by DBP as an agent of the Borrower with funds provided by the Borrower; and (e) fund DBP for defaults on loans previously made by DBP to meet specific priorities established by the Borrower. For the purposes of this sub-paragraph, the Borrower shall fund DBP to the extent of sums involved in any of the defaults upon being notified by DBP of such defaults, subject to an adjustment to be made between the Borrower and DBP at a later date as may be necessary as a result of any sums recovered by DBP from defaulting Sub- Borrowers of such Sub-loans. Section 4.03. In the event that the audit of DBP's accounts and financial statements for any of its fi3cal years shall not in the opinion of the Bank reflect sound auditing principles consis- tently applied, the Borrower shall take all necessary action, including the appointment of independent auditors acceptable to the Bank, to furnish to the Bank such audit of such accounts and financial statements as shall be necessary to enable the Bank to reach a sound judgment on DBP's financial condition. Section 4.04. The Borrower shall furnish to the Bank all annual analyses of DBP's asset portfolio carried out by any of the - 12 - Borrower's agencies not later than four months after the end of each fiscal year of DBP. ARTICLE V Remedies of the Bank Section 5.01. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof: (a) a default shall occur in the performance of any obliga- tion of DBP under the Project Agreement; (b) the Charter of DBP shall have been amended so as to affect materially and adversely the operations or financial condition of DBP; (c) DBP shall be unable to pay its debts as they mature or any action or proceeding shall have been undertaken whereby any of the property of DBP shall or may be distributed among its creditors; (d) any part of the principal amount of any loan to DBP having an original maturity of one year or more shall, in accor- dance with its terms, have become due and payable in advance of maturity, as provided in the relative contractual instruments, or any security for any such loan shall have become enforceable; (e) the Borrower or any other authority having jurisdiction shall have taken any action for the dissolution or disestablish- ment of DBP or for the suspension of its operations; and (f) a Subsidiary or any other entity shall have been created or acquired or taken over by DBP, if such creation, acquisition or taking over would adversely affect the conduct of DBP's business, its financial situation, the efficiency of its management and personnel or the carrying out of the Project. Section 5.02. For the purposes of Section 7.01 of the General Conditions, the following additonal events are specified pursuant to paragraph (d) thereof: (a) any event specified in paragraphs (a), (b) or (f) of Section 5.01 of this Agreement shall occur and shall continue for a period of sixty -days after notice thereof shall have been given by the Bank to the Borrower and DBP; and - 13 - (b) any event specified in paragraphs (c), (d) or (e) of Section 5.01 of this Agreement shall occur. ARTICLE VI Effective Date; Termination Section 6.01. The following event is specified as an addi- tional condition to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions, namely, that the Subsidiary Loan Agreement has been entered into by the Borrower and DBP, respectively. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank: (a) that the Project Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, DBP, and constitutes a valid and binding obligation of DBP in accordance with its terms; and (b) that the Subsidiary Loan Agreement has been duly author- ized or ratified by, and constitutes a valid and binding obliga- tion of, the Borrower and DBP in accordance with its terms. Section 6.03. The date September 6, 1978, is hereby specified for the purposes of Section 12.04 of the General Conditions. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. Subject to the provisions of Section 2.03 of this Agreement, the Secretary of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Secretary of Finance Department of Finance Manila, Philippines - 14 - Cable address: Telex: SECFINANCE 722-7550 Manila For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INTBAFRAD 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. REPUBLIC OF THE PHILIPPINES By /s/ Eduardo Z. Romualdez Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ S. Shahid Husain Regional Vice President East Asia and Pacific - 15 - SCHEDULE 1 Amortization Schedules For Part A of the* For Parts B and Project C of the Project Payment of Principal Payment of Principal Date Payment Due (expressed in dollars)** (expressed in dollars)** October 15, 1981 250,000 - April 15, 1982 375,000 - October 15, 1982 625,000 - April 15, 1983 875,000 - October 15, 1983 1,125,000 1,000,000 April 15, 1984 1,375,000 1,000,000 October 15, 1984 1,625,000 1,000,000 April 15, 1985 1,875,000 1,000,000 October 15, 1985 2,125,000 1,000,000 April 15, 1986 2,375,000 1,000,000 October 15, 1986 2,750,000 1,000,000 April 15, 1987 3,250,000 1,000,000 October 15, 1987 3,500,000 1,000,000 April 15, 1988 3,625,000 1,000,000 October 15, 1988 3,375,000 1,000,000 April 15, 1989 3,125,000 1,000,000 October 15, 1989 2,875,000 1,000,000 April 15, 1990 2,375,000 1,000,000 October 15, 1990 2,250,000 1,000,000 April 15, 1991 2,125,000 1,000,000 October 15, 1991 1,875,000 1,000,000 April 15, 1992 1,500,000 1,000,000 October 15, 1992 1,375,000 1,000,000 April 15, 1993 1,000,000 1,000,000 October 15, 1993 875,000 1,000,000 April 15, 1994 750,000 1,000,000 October 15, 1994 500,000 1,000,000 April 15, 1995 250,000 1,000,000 October 15, 1995 - 1,000,000 April 15, 1996 - 1,000,000 October 15, 1996 - 1,000,000 April 15, 1997 - 1,000,000 October 15, 1997 - 1,000,000 April 15, 1998 - 1,000,000 * This Part of the Amortization Schedule is subject to amend- ment pursuant to the provisions of Section 2.08 of the Loan Agreement. ** To the extent that any portion of the Loan is repayable in a currency other than dollars (see General Conditions, Section 4.02), the figures in this column represent dollar equiva- lents determined as for purposes of withdrawal. - 16 - Premiums on Prepayment The following percentages are specified as the premiums payable on repayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.05 (b) of the General Conditions or to Section 2.09 (a) of the Loan Agreement: A. For Part A of the Project Time of Prepayment Premium Not more than three years before maturity 1.30% More than three years but not more than six years before maturity 2.65% More than six years but not more than eleven years before maturity 4.85% More than eleven years but not more than fifteen years before maturity 6.60% More than fifteen years before maturity 7.50% B. For Parts B and C of the Project Time of Prepayment Premium Not more than three years before maturity 1.15% More than three years but not more than six years before maturity 2.25% More than six years but not more than eleven years before maturity 4.15% - 17 - More than eleven years but not more than sixteen years before maturity 6.00% More than sixteen years but not more than eighteen years before maturity 6.75% More than eighteen years before maturity 7.50%