Our priorities are those of our borrowers and many of the loan terms in the Pooled Loan Program are determined by applicants subject to legal, program, and underwriting conformance.
Timing and Procedures
Applications to the Bond Bank can be completed at any time but will not be formally acted upon until the formal deadline preceding the Winter and Summer loan pools. Applications are generally due two months prior to the closing dates, which are planned to occur:
- Winter Pool – On or about February 28th
- Summer Pool – On or about July 31st
- The Bond Bank will underwrite and review the credit of applicants. The Bond Bank board will formally vote to approve loans prior to the Bond Bank issuing bonds that will be used to fund loans under the Pooled Loan Program.
| Description | Notes | |
|---|---|---|
| Loan Amount | Up to 100% financing of project costs | No loan limits but the overall debt capacity of the borrower will be evaluated during underwriting. |
| Interest Rate | Market rate based on the Bond Bank’s “AA+” rating | The Bond Bank issues bonds to fund loans, which will establish the loan rate. Rates are “locked-in” on the date the bonds are priced. |
| Loan Term / Amortization |
|
Requested term will be reviewed by local bond counsel to ensure statutory compliance. Municipal and school district loans may have level or declining principal payments. Utilities and other qualifying local bonds may have level debt service payments. |
| Payment Dates | Payments are due semi-annually on May 1st (interest only) and November 1st (interest and principal) | Our bond trustee, US Bank, invoices 45 days prior to payment dates. Borrowers retain the responsibility to make payments with or without invoices. |
| Underwriting / Credit Review | We will review timing of supporting revenue vs debt service, financial statements, and local economic condition | |
| Fees | No fees are charged associated with applying receiving loans through the Bond Bank |