| 1.
What does "tax-exempt" mean?
2.
What is the advantage for the borrower?
3.
What is the interest rate for a tax-exempt
IDB?
4.
What types of facilities may be financed through
a tax-exempt IDB?
5.
What are the exceptions to financing non-manufacturing
facilities?
6.
Who issues tax-exempt bonds for borrowers
in the City of Los Angeles?
7.
What amount of time is required to complete
a bond issue?
8.
What type of security or collateral is required for an IDB?
As
the IDA is only a conduit issuer and does not pledge City funds
to repay the bond issue, the obligation to repay bondholders is
based upon the credit worthiness of the borrower and its ability
to obtain a Letter of Credit (LOC) issued by a bank with a credit
rating of "A" or better. Borrowers who are capable of
securing a LOC may be required to pledge various forms of collateral
to its lender. These requirements will vary for each borrower
depending on the credit status of the borrower with its bank.
9.
What are the funding limits?
10.
What are the terms?
11.
Who are the IDA Bond Finance Team members?
12.
Does the project involve a manufacturing
or processing activity?
13.
Will a significant portion of the project
(60–75%) consist of core manufacturing or processing?
14.
Are the capital costs of the project less
than $10MM?
15.
Does the company have any other tax-exempt
bonds outstanding?
16.
Will the project result in an increase
of employees, job retention or some other
public benefit?
17.
Will the project involve the acquisition
of an existing building?
18.
How will the project’s asset values
be amortized?
19.
Would the company otherwise qualify for
a conventional bank loan?
20.
Have any cost been paid with respect to
the project?
21.
Will the company relocate its manufacturing
facilities from one location in California to another? |
