2006 Alabama Code - Section 5-21-7 — Interest rates.

The Treasurer shall determine the rate, term, method, and date of payment due the State of Alabama on each linked deposit. The rate of interest on a one-year linked deposit shall be two percent below the most recent weekly average one-year constant maturity yield, as published by the Board of Governors of the Federal Reserve System, but in no event shall the interest rate be less than one percent. The rate of interest on a two-year linked deposit shall be two percent below the most recent weekly average two-year constant maturity yield, as published by the Board of Governors of the Federal Reserve System, but in no event shall the interest rate be less than one percent. The lending institution sets the interest rate charged to the borrower, but the rate of interest charged on any linked deposit loan shall be two percent below the rate the lending institution would have charged the borrower had the linked deposit program not been used.

(Acts 1988, No. 88-162, p. 256, §7; Acts 1995, No. 95-257, p. 430, §1; Act 99-659, 2nd Sp. Sess., p. 113, §1; Act 2004-486, §1.)