Interest on Bonds

(a)Bonds shall bear interest at a net rate of not to exceed nine percent (9%) per annum, after subtracting from bond interest the amount of any direct subsidy payment to be received from the United States in connection with such Bonds. Interest shall be payable annually or semi-annually or in part annually and in part semi-annually except that the first coupon on any bond may be payable any number of months less than twelve

(12)after the date of such bond.

(b)The interest rate on the refinancing of the Thirty-Six Million Dollars ($36,000,000) loan from the Federal Financing Bank (as provided in P.L. No. 96-205) shall be at the rate established in accordance with P.L. No. 96-205. Interest may be payable annually or semi-annually or in part annually and in part semiannually except that the first coupon on any bond may be payable any number of months less than twelve

(12)after the date of such bond.