Also prior to 1995, states were restricted from Advance Constructing beyond the current authorization period. This was changed by Section 308 of the NHS Act. In some states, there are legislated limits on how much debt they can have outstanding at any given time. Some states may actually get higher ratings than GO bonds, due to substantial coverage ratios, or the proportion of the state s Federal-aid to amount of debt incurred. Revenue streams may be unavailable for project, eliminating the possibility of revenue bonds.
Bond insurance is a credit enhancement intended to make the bonds more marketable.
The Federal share of debt service is paid with Federal-aid Advance Construction reimbursements. This stream of reimbursements can be used for debt service on other, non-federal projects. U.S.C. Get approval for Advance Construction from FHWA Division office. The AC designationpreserves the project s eligibility for future Federal-aid assistance. Project construction begins.