Statutes, codes, and regulations
New York Codes, Rules and Regulations
Title 9 - EXECUTIVE DEPARTMENTSubtitle S - Division of Housing and Community RenewalChapter III - Low Rent HousingSubchapter D - Accounting Manual For Public Housing AgenciesPart 1644 - Debt Service
Subpart 1644-3 - Debt Service Subsequent To Issuance Of Housing Bonds
Section 1644-3.3 - Computation of interest on State housing bonds

N.Y. Comp. Codes R. & Regs. tit. 9 § 1644-3.3

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Current through Register Vol. 46, No. 25, June 18, 2024
Section 1644-3.3 - Computation of interest on State housing bonds

The first interest payment to bondholders is, ordinarily, due six months after the date of issue of the bonds and the interest is payable semiannually thereafter. Local agencies will accrue interest on State housing bonds at the end of each quarter beginning with the month of issue at the rate of one quarter of the annual interest on the bonds for each full calendar quarter of the interest year falling within the fiscal year. Interest for fractional parts of a quarter is computed on the basis of a 90-day quarter, regardless of the actual number of days in that quarter. In computing interest for fractional parts of a month, the first day of an interest year falling within that month is counted, but not the last day of an interest year.

(a) To illustrate, assume that on April 1, 1956 (the beginning of a fiscal year), $1,000,000 in housing bonds was outstanding for a given project. The bonds bear interest at the rate of 1.60 per cent per annum. On July 18, 1956, an amortization payment of $200,000 is made. The amount of the annual interest on the $1,000,000 of bonds outstanding on April 1, 1956 is $16,000. The interest to be accrued for the quarter ending June 30, 1956, is one quarter of $16,000 or $4,000.
(b) The interest to be accrued for the quarter ending September 30, 1956, taking into account the amortization payment of $200,000 on July 18, 1956 is as follows:

$4,000 ÷ 3 = $1,333.33
Interest for 17 days:
$1,333.33 * 17/ 30$ 755.55
Interest on $800,000 for 13 days (the number of days remaining in July, assuming a 30 day month) and for the months of August and September
Interest for July:
$3,200 ÷ 3 * 13/ 30 = $462.22
Interest for August and September:
$3,200 ÷ 3 * 2 = 2,133.342,595.56
Total interest to be accrued for quarter ending September 30, 1956$3,351.11

(c) For the quarter ending December 31, 1956, the interest to be accrued is one quarter of $12,800 or $3,200.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 1644-3.3