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MFABC Issue No. 131 – Spring 2015
Loan Funding:
April 8th, 2015:
RD's & RHD's receive net proceeds
Net Proceeds:
98.40% of Gross Loan Request
 1.0% cash withheld for Debt Reserve Fund
o Refunded, with interest, upon complete repayment of loan
obligation
 0.6% for issue costs
o Expense of the issue (non-refundable)
Lending Rates:
5 yr. borrowers:
10 yr. borrowers:
15, 20, & 25 yr. borrowers:
1.45%
2.20%
2.20% (for first 10 years of term) *
* On April 8, 2025 the 15, 20 & 25 borrowers are subject to rate change with options
available at that time to repay loan in whole or part (see bottom).
Invoicing:
Interest billed semi-annually on October 8th & April 8th
Principal billed annually on April 8th
 1st billing of interest:
October 8th, 2015
 1st billing of principal:
April 8th, 2016 *
* Please note that the sinking fund factor (or actuarial rate) has been set at
3.50% for this issue and as such principal repayments reflect this rate.
Early loan repayment options:
At each rate reset date, typically 10 years after the start of the loan & every 5 years thereafter,
borrowers may repay all or part of their loan obligation.
April 8th, 2025: The 15, 20, & 25 year borrowers may exercise early repayment options. The
amount required to extinguish loan will be the outstanding balance on that date (i.e. the
reducing balance column on loan schedule as at April 8th, 2025 after the regularly scheduled
collection of principal & interest for that date).
Early payment amounts should be made directly to the MFA and separately from the regularly
scheduled Principal and Interest billing for that day which will continue to be collected in the
standard pre-arranged fashion.
Please notify the MFA by the middle of the month preceding the rate reset date of intention to
payout. See status of loans document for more issue details http://mfa.bc.ca/resources/tools