35 we use the following factors to determine the loan loss allowance for the general portfolio category : · internal risk ratings system . we maintain risk ratings for our borrowers that are updated at least annually and are based on the following : - general financial condition of the borrower ; - our estimate of the adequacy of the collateral securing our loans ; - our judgment of the quality of the borrower 's management ; - our judgment of the borrower 's competitive position within its service territory and industry ; - our estimate of the potential impact of proposed regulation and litigation ; and - other factors specific to individual borrowers or classes of borrowers . · standard & poor 's historical corporate bond default table . the table provides expected default rates for all corporate bonds based on rating level and the remaining maturity . we correlate our internal risk ratings to the ratings used in the corporate bond default table . we use the default table to assist in estimating our loan loss allowance because we have limited history from which to develop loss expectations . · recovery rates . estimated recovery rates are based on our historical recovery experience by member class calculated by comparing loan balances at the time of default to the total loss recorded on the loan . at may 31 , 2011 and 2010 , we had a total of $ 18,592 million and $ 18,037 million of loans , respectively , in the general portfolio . this total excludes $ 227 million and $ 237 million of loans at may 31 , 2011 and 2010 , respectively , that have a u.s. government guarantee of all principal and interest payments . we do not maintain a loan loss allowance on loans that are guaranteed by the u.s. government . at may 31 , 2011 and 2010 , we had a total loss allowance of $ 99 million and $ 125 million , respectively , for loans in the general portfolio representing coverage of 0.5 percent and 0.7 percent , respectively , of the total loans for the general portfolio . in addition to the loan loss allowance for the general portfolio as calculated above , we maintain an unallocated reserve for the general portfolio . our unallocated reserve has two components : · a single-obligor reserve to cover the additional risk associated with large loan exposures . this unallocated reserve is based on our internal risk ratings and applied to exposures above an established threshold . at may 31 , 2011 and 2010 , our single-obligor reserve was $ 25 million and $ 28 million , respectively . · an economic and environmental reserve to cover factors we believe are currently affecting the financial results of borrowers but are not reflected in our internal risk rating process and , therefore , present an increased risk of losses incurred as of the balance sheet date . we use annual audited financial statements from our borrowers as part of our internal risk rating process . there could be a lag between the time various environmental and economic factors occur and the time when these factors are reflected in the annual audited financial statements of the borrower and , therefore , the internal risk rating we determine for the borrower . our corporate credit committee makes a quarterly determination of the percentage to apply to loans in the general portfolio as an additional reserve . this reserve component may be set at up to 10 percent of the amount of the calculated general loan loss allowance for each type of loan exposure . at may 31 , 2011 , the corporate credit committee set the economic and environmental component of the unallocated reserve to be $ 0.5 million , representing 7 percent of the general reserve held for telecommunications loans compared with $ 3 million at may 31 , 2010 representing 2 percent of the general reserve held for cfc and ncsc loans and 7 percent of the general reserve held for rtfc loans . at may 31 , 2010 , the corporate credit committee took into consideration the effect on our borrowers from ( i ) the economic downturn , ( ii ) the increase in the unemployment rate , ( iii ) the decline in the housing market that led to a significant increase in foreclosures and ( iv ) specifically for telecommunications borrowers , reduced discretionary spending for telecommunications services , increased competition from wireless providers and continued loss of access lines among rural local exchange carriers . at may 31 , 2011 , the corporate credit committee concluded that these factors continued to affect rtfc borrowers , but that cfc and ncsc borrowers were not significantly affected by the economic downturn and maintained or improved financial ratios . as a result , the corporate credit committee reduced the unallocated reserve for cfc and ncsc loans to zero . impaired loans a loan is considered to be impaired when we do not expect to collect all principal and interest payments as scheduled by the original loan terms , other than an insignificant delay or an insignificant shortfall in amount . factors considered in determining impairment may include , but are not limited to : · the review of the borrower 's audited financial statements and interim financial statements if available , · the borrower 's payment history , · communication with the borrower , 36 · economic conditions in the borrower 's service territory , · pending legal action involving the borrower , · restructure agreements between us and the borrower and · estimates of the value of the borrower 's assets that have been pledged as collateral to secure our loans . story_separator_special_tag ( 4 ) changes due to average volume and average rate represent a calculated amount and are not intended to sum . ( 5 ) for derivative cash settlements , variance due to average volume represents the change in derivative cash settlements that resulted from the change in the average notional amount of derivative contracts outstanding . variance due to average rate represents the change in derivative cash settlements that resulted from the net difference between the average rate paid and the average rate received for interest rate swaps during the period . ( 6 ) see non-gaap financial measures for further explanation of the adjustment we make in our financial analysis to include the derivative cash settlements in interest expense . during the year ended may 31 , 2011 , interest expense decreased 8 percent compared with the same prior-year period primarily due to the 28 basis point reduction in the total cost of debt . the lower cost of debt was mostly the result of refinancing maturing term debt with a combination of commercial paper and term debt at lower interest rates . during fiscal year 2011 , we increased the utilization of commercial paper in our funding mix . the increase in commercial paper to 15 percent of the total average debt outstanding for fiscal year 2011 from 11 percent for the prior-year period was offset by the decrease in medium-term notes to 21 percent of the total average debt outstanding from 24 percent for the prior-year period . 41 at an average cost of 0.32 percent and 0.36 percent for the years ended may 31 , 2011 and 2010 , commercial paper is our lowest-cost source of debt funding and significantly lower in average cost compared with medium-term notes of 6.23 percent and 6.02 percent for the same periods , respectively . a decrease to our cost of debt also resulted from our issuance of collateral trust bonds in november 2010 at an average interest rate of 1.54 percent in order to refinance maturing collateral trust bonds with a fixed rate of 4.375 percent and redeem subordinated deferrable debt with a fixed rate of 6.75 percent . we lowered our average cost for long-term notes payable by 37 basis points during the year ended may 31 , 2011 compared with the prior-year period . in january 2011 , we repriced $ 750 million of long-term notes payable to the federal financing bank at an average effective rate of 1.73 percent compared with an effective rate of 5.20 percent prior to repricing . in addition , we issued notes totaling $ 400 million to the federal agricultural mortgage corporation in september 2010 and october 2010 , at rates ranging from 0.62 percent to 0.67 percent . these notes matured during the third quarter of fiscal year 2011. during the year ended may 31 , 2010 , interest expense decreased 2 percent compared with the same prior-year period primarily due to the 10 basis point reduction in the cost of debt resulting from the lower overall interest rate environment . the decrease in the average cost of debt was driven largely by the decrease in interest rates for commercial paper and long-term notes payable to the federal agricultural finance corporation . this decrease was partially offset by maintaining a lower balance of commercial paper in our overall funding mix and issuing more term debt , including collateral trust bonds , member capital securities and notes payable to the federal agricultural finance corporation . the adjusted interest expense , which includes all derivative cash settlements , was $ 848 million for the year ended may 31 , 2011 , compared with $ 935 million and $ 822 million for the years ended may 31 , 2010 and 2009 , respectively . the adjusted interest expense was lower during the year ended may 31 , 2011 due to the lower interest expense noted above and the decrease in the derivative cash settlements expense discussed further below . the adjusted interest expense was higher during the year ended may 31 , 2010 as compared with the same prior-year period primarily due to cash settlements income resulting from terminated interest rate swaps during fiscal year 2009 as discussed further below . see non-gaap financial measures for further explanation of the adjustment we make in our financial analysis to include all derivative cash settlements in interest expense . net interest income the following tables represent a summary of the effect on net interest income and adjusted net interest income from changes in the components of total interest income and total interest expense described above . the following tables also summarize the net yield and adjusted net yield and the changes to net interest income and adjusted net interest income due to changes in average volume versus changes to interest rates . replace_table_token_19_th ( 1 ) see non-gaap financial measures for further explanation of the adjustment we make in our financial analysis to include the derivative cash settlements in interest expense , which affects adjusted net interest income . replace_table_token_20_th ( 1 ) calculated using the following formula : ( current period average balance – prior-year period average balance ) x prior-year period average rate . ( 2 ) calculated using the following formula : ( current period average rate – prior-year period average rate ) x current period average balance . ( 3 ) the net change attributable to the combined impact of volume and rate has been allocated to each in proportion to the absolute dollar amounts of change . 42 the increase of 28 percent to net interest income for the year ended may 31 , 2011 compared with the prior-year period was primarily due to the reduction to interest expense , partially offset by the decrease in interest income as explained previously . net interest income decreased 3 percent during the year ended may 31 , 2010 compared with the prior-year period as the decline in the average yield of

outstanding debt the following table breaks out our debt outstanding and the weighted average interest rates by type of debt at may 31 : replace_table_token_31_th ( 1 ) includes $ 309 million and $ 372 million related to the daily liquidity fund at may 31 , 2011 and 2010 , respectively . ( 2 ) includes variable-rate debt that has been swapped to a fixed rate net of any fixed-rate debt that has been swapped to a variable rate . ( 3 ) the rate on commercial paper notes does not change once the note has been issued . however , the rates on new commercial paper notes change daily , and commercial paper notes generally have maturities of less than 90 days . therefore , commercial paper notes are classified as variable-rate debt . also includes fixed-rate debt that has been swapped to a variable rate net of any variable-rate debt that has been swapped to a fixed rate . total debt outstanding increased by $ 341 million at may 31 , 2011 as compared with may 31 , 2010 primarily due to the need to fund the $ 418 million increase to total assets . the increase to total assets was primarily due to increases of $ 420 million to net loans outstanding and $ 239 million to the balance of foreclosed assets offset by the reduction of $ 220 million to the balance of cash . commercial paper and bank bid notes represented a higher percentage of the total debt outstanding at may 31 , 2011 compared with the percentage at may 31 , 2010 as a result of its use to refinance maturing term debt during the period . in july 2010 , $ 400 million of variable-rate collateral trust bonds matured , and in october 2010 , $ 500 million of 4.375 percent collateral trust bonds matured . in september 2010 , we redeemed $ 125 million of 6.75 percent subordinated deferrable debt . additionally , maturities of medium-term notes exceeded new advances by $ 575 million during the year ended may 31 , 2011. these debt maturities were refinanced with a combination of commercial paper and collateral trust bonds .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```outstanding debt the following table breaks out our debt outstanding and the weighted average interest rates by type of debt at may 31 : replace_table_token_31_th ( 1 ) includes $ 309 million and $ 372 million related to the daily liquidity fund at may 31 , 2011 and 2010 , respectively . ( 2 ) includes variable-rate debt that has been swapped to a fixed rate net of any fixed-rate debt that has been swapped to a variable rate . ( 3 ) the rate on commercial paper notes does not change once the note has been issued . however , the rates on new commercial paper notes change daily , and commercial paper notes generally have maturities of less than 90 days . therefore , commercial paper notes are classified as variable-rate debt . also includes fixed-rate debt that has been swapped to a variable rate net of any variable-rate debt that has been swapped to a fixed rate . total debt outstanding increased by $ 341 million at may 31 , 2011 as compared with may 31 , 2010 primarily due to the need to fund the $ 418 million increase to total assets . the increase to total assets was primarily due to increases of $ 420 million to net loans outstanding and $ 239 million to the balance of foreclosed assets offset by the reduction of $ 220 million to the balance of cash . commercial paper and bank bid notes represented a higher percentage of the total debt outstanding at may 31 , 2011 compared with the percentage at may 31 , 2010 as a result of its use to refinance maturing term debt during the period . in july 2010 , $ 400 million of variable-rate collateral trust bonds matured , and in october 2010 , $ 500 million of 4.375 percent collateral trust bonds matured . in september 2010 , we redeemed $ 125 million of 6.75 percent subordinated deferrable debt . additionally , maturities of medium-term notes exceeded new advances by $ 575 million during the year ended may 31 , 2011. these debt maturities were refinanced with a combination of commercial paper and collateral trust bonds .
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 Suspicious Activity Report : 35 we use the following factors to determine the loan loss allowance for the general portfolio category : · internal risk ratings system . we maintain risk ratings for our borrowers that are updated at least annually and are based on the following : - general financial condition of the borrower ; - our estimate of the adequacy of the collateral securing our loans ; - our judgment of the quality of the borrower 's management ; - our judgment of the borrower 's competitive position within its service territory and industry ; - our estimate of the potential impact of proposed regulation and litigation ; and - other factors specific to individual borrowers or classes of borrowers . · standard & poor 's historical corporate bond default table . the table provides expected default rates for all corporate bonds based on rating level and the remaining maturity . we correlate our internal risk ratings to the ratings used in the corporate bond default table . we use the default table to assist in estimating our loan loss allowance because we have limited history from which to develop loss expectations . · recovery rates . estimated recovery rates are based on our historical recovery experience by member class calculated by comparing loan balances at the time of default to the total loss recorded on the loan . at may 31 , 2011 and 2010 , we had a total of $ 18,592 million and $ 18,037 million of loans , respectively , in the general portfolio . this total excludes $ 227 million and $ 237 million of loans at may 31 , 2011 and 2010 , respectively , that have a u.s. government guarantee of all principal and interest payments . we do not maintain a loan loss allowance on loans that are guaranteed by the u.s. government . at may 31 , 2011 and 2010 , we had a total loss allowance of $ 99 million and $ 125 million , respectively , for loans in the general portfolio representing coverage of 0.5 percent and 0.7 percent , respectively , of the total loans for the general portfolio . in addition to the loan loss allowance for the general portfolio as calculated above , we maintain an unallocated reserve for the general portfolio . our unallocated reserve has two components : · a single-obligor reserve to cover the additional risk associated with large loan exposures . this unallocated reserve is based on our internal risk ratings and applied to exposures above an established threshold . at may 31 , 2011 and 2010 , our single-obligor reserve was $ 25 million and $ 28 million , respectively . · an economic and environmental reserve to cover factors we believe are currently affecting the financial results of borrowers but are not reflected in our internal risk rating process and , therefore , present an increased risk of losses incurred as of the balance sheet date . we use annual audited financial statements from our borrowers as part of our internal risk rating process . there could be a lag between the time various environmental and economic factors occur and the time when these factors are reflected in the annual audited financial statements of the borrower and , therefore , the internal risk rating we determine for the borrower . our corporate credit committee makes a quarterly determination of the percentage to apply to loans in the general portfolio as an additional reserve . this reserve component may be set at up to 10 percent of the amount of the calculated general loan loss allowance for each type of loan exposure . at may 31 , 2011 , the corporate credit committee set the economic and environmental component of the unallocated reserve to be $ 0.5 million , representing 7 percent of the general reserve held for telecommunications loans compared with $ 3 million at may 31 , 2010 representing 2 percent of the general reserve held for cfc and ncsc loans and 7 percent of the general reserve held for rtfc loans . at may 31 , 2010 , the corporate credit committee took into consideration the effect on our borrowers from ( i ) the economic downturn , ( ii ) the increase in the unemployment rate , ( iii ) the decline in the housing market that led to a significant increase in foreclosures and ( iv ) specifically for telecommunications borrowers , reduced discretionary spending for telecommunications services , increased competition from wireless providers and continued loss of access lines among rural local exchange carriers . at may 31 , 2011 , the corporate credit committee concluded that these factors continued to affect rtfc borrowers , but that cfc and ncsc borrowers were not significantly affected by the economic downturn and maintained or improved financial ratios . as a result , the corporate credit committee reduced the unallocated reserve for cfc and ncsc loans to zero . impaired loans a loan is considered to be impaired when we do not expect to collect all principal and interest payments as scheduled by the original loan terms , other than an insignificant delay or an insignificant shortfall in amount . factors considered in determining impairment may include , but are not limited to : · the review of the borrower 's audited financial statements and interim financial statements if available , · the borrower 's payment history , · communication with the borrower , 36 · economic conditions in the borrower 's service territory , · pending legal action involving the borrower , · restructure agreements between us and the borrower and · estimates of the value of the borrower 's assets that have been pledged as collateral to secure our loans . story_separator_special_tag ( 4 ) changes due to average volume and average rate represent a calculated amount and are not intended to sum . ( 5 ) for derivative cash settlements , variance due to average volume represents the change in derivative cash settlements that resulted from the change in the average notional amount of derivative contracts outstanding . variance due to average rate represents the change in derivative cash settlements that resulted from the net difference between the average rate paid and the average rate received for interest rate swaps during the period . ( 6 ) see non-gaap financial measures for further explanation of the adjustment we make in our financial analysis to include the derivative cash settlements in interest expense . during the year ended may 31 , 2011 , interest expense decreased 8 percent compared with the same prior-year period primarily due to the 28 basis point reduction in the total cost of debt . the lower cost of debt was mostly the result of refinancing maturing term debt with a combination of commercial paper and term debt at lower interest rates . during fiscal year 2011 , we increased the utilization of commercial paper in our funding mix . the increase in commercial paper to 15 percent of the total average debt outstanding for fiscal year 2011 from 11 percent for the prior-year period was offset by the decrease in medium-term notes to 21 percent of the total average debt outstanding from 24 percent for the prior-year period . 41 at an average cost of 0.32 percent and 0.36 percent for the years ended may 31 , 2011 and 2010 , commercial paper is our lowest-cost source of debt funding and significantly lower in average cost compared with medium-term notes of 6.23 percent and 6.02 percent for the same periods , respectively . a decrease to our cost of debt also resulted from our issuance of collateral trust bonds in november 2010 at an average interest rate of 1.54 percent in order to refinance maturing collateral trust bonds with a fixed rate of 4.375 percent and redeem subordinated deferrable debt with a fixed rate of 6.75 percent . we lowered our average cost for long-term notes payable by 37 basis points during the year ended may 31 , 2011 compared with the prior-year period . in january 2011 , we repriced $ 750 million of long-term notes payable to the federal financing bank at an average effective rate of 1.73 percent compared with an effective rate of 5.20 percent prior to repricing . in addition , we issued notes totaling $ 400 million to the federal agricultural mortgage corporation in september 2010 and october 2010 , at rates ranging from 0.62 percent to 0.67 percent . these notes matured during the third quarter of fiscal year 2011. during the year ended may 31 , 2010 , interest expense decreased 2 percent compared with the same prior-year period primarily due to the 10 basis point reduction in the cost of debt resulting from the lower overall interest rate environment . the decrease in the average cost of debt was driven largely by the decrease in interest rates for commercial paper and long-term notes payable to the federal agricultural finance corporation . this decrease was partially offset by maintaining a lower balance of commercial paper in our overall funding mix and issuing more term debt , including collateral trust bonds , member capital securities and notes payable to the federal agricultural finance corporation . the adjusted interest expense , which includes all derivative cash settlements , was $ 848 million for the year ended may 31 , 2011 , compared with $ 935 million and $ 822 million for the years ended may 31 , 2010 and 2009 , respectively . the adjusted interest expense was lower during the year ended may 31 , 2011 due to the lower interest expense noted above and the decrease in the derivative cash settlements expense discussed further below . the adjusted interest expense was higher during the year ended may 31 , 2010 as compared with the same prior-year period primarily due to cash settlements income resulting from terminated interest rate swaps during fiscal year 2009 as discussed further below . see non-gaap financial measures for further explanation of the adjustment we make in our financial analysis to include all derivative cash settlements in interest expense . net interest income the following tables represent a summary of the effect on net interest income and adjusted net interest income from changes in the components of total interest income and total interest expense described above . the following tables also summarize the net yield and adjusted net yield and the changes to net interest income and adjusted net interest income due to changes in average volume versus changes to interest rates . replace_table_token_19_th ( 1 ) see non-gaap financial measures for further explanation of the adjustment we make in our financial analysis to include the derivative cash settlements in interest expense , which affects adjusted net interest income . replace_table_token_20_th ( 1 ) calculated using the following formula : ( current period average balance – prior-year period average balance ) x prior-year period average rate . ( 2 ) calculated using the following formula : ( current period average rate – prior-year period average rate ) x current period average balance . ( 3 ) the net change attributable to the combined impact of volume and rate has been allocated to each in proportion to the absolute dollar amounts of change . 42 the increase of 28 percent to net interest income for the year ended may 31 , 2011 compared with the prior-year period was primarily due to the reduction to interest expense , partially offset by the decrease in interest income as explained previously . net interest income decreased 3 percent during the year ended may 31 , 2010 compared with the prior-year period as the decline in the average yield of

