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77% per annum based on an assumed prepayment rate of 5 CPR and assumed losses of 100 basis points per annum on the outstanding principal amount of the loans (the "Base Case"). 9 million non-cash reduction to net interest income related to changes in our prepayment assumptions, (b) a decline in prepayment penalty fee income to 25 basis points per annum (as a percentage of average loans held for investment) for the second quarter of 2007 compared to 37 basis points for the second quarter of 2006, (c) a $6. In return for the guarantee, CFC will pay 30 basis points per annum on the outstanding borrowings, which will be used to fund this USDA-administered economic development program in rural areas served by CFC's rural electric cooperative member/owners. |
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