Subsidy means:
(1) A direct subsidy, provided that if a direct subsidy is used to write down the interest rate on a loan extended by a member, sponsor, or other party to a project, the subsidy must equal the net present value of the interest foregone from making the loan below the lender's market interest rate; or
(2) The net present value of the interest revenue foregone from making a subsidized advance at a rate below the Bank's cost of funds.


12 CFR § 1291.1

Scoping language

As used in this part:

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