Daily Rules, Proposed Rules, and Notices of the Federal Government


[Docket No. FR-5155-N-02]

Notice of FHA Debenture Call

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing Commissioner, HUD.
ACTION: Notice.
SUMMARY: This Notice announces a debenture recall of certain Federal Housing Administration (FHA) debentures, in accordance with authority provided in the National Housing Act.
FOR FURTHER INFORMATION CONTACT: Yong Sun, FHA Financial Reporting Division, Department of Housing and Urban Development, 451 Seventh Street, SW., Room 5148, Washington, DC 20410, telephone (202) 402-4778. This is not a toll-free number.

Pursuant to section 207(j) of the National Housing Act, 12 U.S.C. 1713(j), and in accordance with HUD's regulations at 24 CFR 207.259(e)(3), the Assistant Secretary for Housing-Federal Housing Commissioner, with the approval of the Secretary of HUD and the Secretary of the Treasury, announces the call of all FHA debentures, with a coupon rate of 6.25 percent or above, except for those debentures subject to “debenture lock agreements,” that have been registered on the books of the Bureau of Public Debt, Department of the Treasury, and are, therefore, “outstanding” as of September 30, 2007. The date of the call is January 1, 2008.

The debentures will be redeemed at par plus accrued interest. Interest will cease to accrue on the debentures as of the call date. At redemption, final interest on any called debentures will be paid along with the principal. Payment of final principal and interest due on January 1, 2008 will be made automatically to the registered holder.

During the period from the date of this notice to the call date, debentures that are subject to the call may not be used by the mortgagee for a special redemption purchase in payment of a mortgage insurance premium.

No transfer of debentures covered by the foregoing call will be made on the books maintained by the Treasury Department on or after December 14, 2007. This debenture call does not affect the right of the holder of a debenture to sell or assign the debenture on or after this date.

Dated: September 10, 2007. Brian D. Montgomery, Assistant Secretary for Housing—Federal Housing Commissioner.