Restricted Investments

3 Months Ended

Mar. 31, 2017

Restricted Investments

Restricted Investments

(H)          Restricted Investments.    Restricted investments consist of funds on deposit with the Rural Utilities Service in the Cushion of Credit Account. The restricted investments can only be utilized for future Rural Utilities Service-guaranteed Federal Financing Bank debt service payments; deposits can also be used for debt service payments on direct loans made by the Rural Utilities Service but we no longer have such direct loans. The funds on deposit earn interest at a rate of 5% per annum. At March 31, 2017 and December 31, 2016, we had restricted cash and investments totaling $431,193,000 and $468,179,000, respectively, of which $184,132,000 and $221,122,000, respectively, were classified as long-term. The funds on deposit with the Rural Utilities Service in the Cushion of Credit Account are held by the U.S. Treasury, acting through the Federal Financing Bank.