Furthermore, certain other non-economic factors, such as ease of access and reduced management time, provide compelling benefits to borrowing from the Program. As a potential borrower, we have great confidence in the advice of our bond counsel and financial advisors. To the contrary, we expect that they will continue to participate in their same capacities and anticipate that they will provide valuable input regarding your most advantageous use of the pool. Further, funds have been reserved to defray, and perhaps eliminate, the reasonable fees incurred by these advisors. Provides flexibility to structure the loan and credit terms unique to each borrower and consistent with most borrowers existing trust indentures.
Borrowers pay little or no up-front costs of issuance in connection with their loans.
Program participants draw funds only on an as-needed basis and incur interest costs only when borrowing occurs. Allows for a variable or fixed interest rate loan, as determined by the borrower s preference and the availability of credit enhancement. The sub-series of bonds funding the loan will be issued on the basis of credit enhancement provided by a bank or a bond insurance company or on the basis of the borrower s own credit quality under certain circumstances. There is no cross-collateralization among borrowers. Origination of a loan may be limited to the execution of loan and credit reimbursement agreements.