If we use the Program, are we in any way liable for the payments or defaults of other participants?
Absolutely not. Each borrower has a separate, stand alone lease agreement. If one Participant were to default, there would be no effect on the other participants or the AAA rating of the Pool. There is no cross collateralization of payments or reserve Funds.

How long does it take to obtain financing?
Once the governing body approves the lease financing, the funds are typically available in 30 to 45 days.

Do we need to get voter approval to lease finance our project through the Pool?
No. The borrowing can be authorized by a resolution of the participant's governing body.

What is the security for the lease financing?
The lease is entered into for the benefit of the public lessee, which contracts to make rental payments. In addition to a covenant to budget, appropriate and make lease payments, an essential asset must be pledged of at least equal value to the amount of each financing.

What is the security for the Bonds?
The pooled lease revenue bonds are secured by the individual lease transactions for each borrower and the bond insurance provides additional security to the investors.

What municipal projects are typically eligible for the Lease Revenue Bond Program?

• City Hall and Public Buildings
• Land Acquisition
• Schools
• Fire Stations
• Parking Facilities
• Parks and Open Space
• Streets and Road Improvements
• Stormdrain Projects
• And other various public construction and acquisition projects
• And refunding of certificates of participation and lease revenue bonds