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Applicant obtains
application form for funding from
the Minnesota Governmental Agency Finance Group (“MGAFG”),
and completes and returns the application to MGAFG.
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The application and credit
review package includes general system information
such as rates and customer base, operating budgets, tax base
information, financial statements, and project information.
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MGAFG reviews the application and the credit review package.
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MGAFG
provides the applicant with a conditional
“Commitment for Funding” letter.
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Morgan
Keegan submits rating package and information to
Standard & Poor’s (and insurance company if applicable).
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The
applicant completes any remaining regulatory
requirements, and projects are typically bid prior to commencement
of construction.
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MGAFG, via
the program’s Bond Counsel, provides the applicant
the necessary loan and authorizing documents.
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The applicant,
at a public meeting, approves and authorizes the
project financing package.
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Morgan Keegan,
with final approval from the applicant, sets the
loan rate at the market rate for applicant’s borrowing on the
scheduled day of pricing.
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The project loan is closed
through the program Trustee, and construction may commence.
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Invoice
requisitions are sent to the program Trustee
for payment.
-
Interest
earnings on the Construction Fund are credited to
borrowers.
-
Loan repayments
are made on a semi-annual basis to the program
Trustee via monthly sinking fund installments.
-
The loan is paid in full.
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