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Treasury Authorizes HUD Call of FHA Insurance Fund Debentures

FOR IMMEDIATE RELEASE

September 30, 1996

The Departments of Treasury and Housing and Urban Development announced today the call of all Federal Housing Administration (FHA) insurance fund debentures with an interest rate of 7 percent or higher outstanding as of September 30, 1996. Debentures issued with a debenture lock agreement are not subject to the call. Debentures that have been registered on the books of the Federal Reserve Bank of Philadelphia as of September 30, 1996, are considered, “outstanding”. The date of the call for the redemption of approximately $60 million in debentures is January 1, 1997, with the semi-annual interest due January 1, paid along with the debenture principal.

Debenture owners of record as of September 30, 1996, will be notified by mail of the call. Transaction requests for the transfer of debentures within the FHA Book-Entry Debenture system will be processed if received by December 12, 1996. Investors should contact the Federal Reserve Bank of Philadelphia (215) 574-6684 for more information.