Conduit Revenue Bond Program

Under AIDEA’s Conduit Revenue Bond Program, AIDEA acts only as a conduit for the issuance of either taxable or tax-exempt bonds. Neither the assets nor credit of AIDEA is at risk in this program; the creditworthiness of the project, borrower strength and credit enhancements offered by the applicant are essential to the underwriting and placement of bonds.

A business enterprise or non-profit corporation may apply for the issuance of bonds under the Conduit Revenue Bond Program by submitting a completed conduit revenue bond application (available here) and non-refundable $1,000 application fee to AIDEA.

Projects which are eligible under the Internal Revenue Code of 1986, as amended, can qualify for tax-exempt financing. If the project qualifies for tax-exempt financing, AIDEA’s Board generally would adopt an eligibility resolution to ensure the maximum amount of expenditures are eligible for financing.

Prior to the sale of bonds, the Board must adopt a resolution authorizing the issuance of the bonds. In addition to third-party costs, the applicant will pay a financing fee to AIDEA.

Issuance Fees

If the bonds are subject to the volume cap provisions of 26 U.S.C. 147, the issuance fee is equal to the following:

· Fifty (50) basis points of the first $10 million of the principal amount of the bonds issued;

· Twenty (20) basis points of the next $40 million of the principal amount of the bonds issued; and

· Fifteen (15) basis points of the principal amount of the bonds issued in excess of $50 million.

If the bonds are not subject to the volume cap provisions of 26 U.S.C. 147, the issuance fee is equal to the following:

· Forty (40) basis points of the first $10 million of the principal amount of the bonds issued;

· Ten (10) basis points of the next $40 million of the principal amount of the bonds issued; and

· Nine (9) basis points of the principal amount of the bonds issued in excess of $50 million.