When VMBB is ready to enter the tax-exempt capital market, it combines all the approved borrowers into a single pooled bond issue. The necessary documents and copies of the applications are submitted to the rating agencies for a credit rating review and update. After the ratings are obtained, a preliminary official statement is printed and mailed to all investment firms and potential purchasers of the bonds. Bonds are offered first to Vermont individual investors and then to national institutional investors.

Usually bonds are sold once a year, in July. If there is sufficient demand, the VMBB may issue additional bond series.

Final interest rates are established through negotiation with the selected senior managing underwriter and are based on several factors including the market's demand for tax-exempt bonds, current national interest rates and a review of recent comparable financings.

No, but interim financing can be obtained from commercial lenders.

Bonds are issued on a fixed-rate basis and borrowers are protected against ever having their interest rates rise due to an increasing market. However, in the event that interest rates decline by a substantial amount, VMBB may refund the existing bonds and pass the savings through to the borrowers. The refunding is limited to the entire pool and may not be done on an individual municipality basis.

There are no legal limits to the amount of bonds a municipality can issue. However, VMBB, through its credit review process, reserves the right to disallow an applicant based on a number of criteria including the amount of debt per capita and the ratio of debt to assessed valuation.

Because of the federal and state tax advantages of these bonds, typical investors tend to be Vermont individuals. Other investors can include banks, mutual funds, insurance companies and other corporations.

The application requires project, tax, rate, financial, economic, debt, income, and population information. The majority of the information requested is for the entire municipality not just the school, town, or village and is readily available in municipal and state reports.

Applications are reviewed by Vermont Municipal Bond Bank's Directors and staff. In addition, each application may also be analyzed by the underwriter, bond counsel, rating agencies and bond insurance company.

No. A municipality cannot pay off a bond early once the bond has been sold. However, there is no restriction on making scheduled bond payments early.

The only time a debt service payment schedule could change would be if VMBB refunded bonds.

A municipality or its engineer contacts the Department of Environmental Conservation. In most cases, a DEC application will need to be filed. If the SRF loan is expected to exceed $100,000, a VMBB SRF application must be filed as well.

Loans are issued on an as-needed basis. Once the applications have been approved by the DEC and the VMBB, the loan may go to closing.

The DEC files an interest rate plan iwth the Federal Environmental Protection Agency. Depending on poverty and other factors, interest rates are set and can vary from a -3.0% to a +3.0%.

No. The SRF program is administered as a "cost reimbursement" program. A municipality must use its own cash or obtain cash flow bank financing to complete the project. See interim financing. Approved SRF project expenses are reimbursed to the municipality by the Trustee by making a reimbursement request to the DEC.

Loans are issued on a fixed-rate basis and borrowers are protected against ever having their interest rates rise due to an increasing market.

The maximum SRF loan size is limited by DEC's engineering and budget review, the availability of SRF funds and the municipality's ability to repay the loan.

The VMBB contracts with People's United Institutional Trust to act as the SRF program's Trustee. When authorized by the DEC and VMBB, the Trustee will reimburse the municipality for approved project expenses. The Trustee is also responsible for sending out payment notices and collecting loan repayments.