State Credit Enhancement Program
The State Credit Enhancement Program enhances the marketability of a school district's bonds because the district pledges its state education aid payments against the payment of debt charges in the event the district is unable to make such payments.
This program provides for the withholding and deposit of funds otherwise due the District under Chapter 3317 of the Ohio Revised Code to be used for the payment of debt charges in the event the district is unable to make such payments. If this were to become necessary, the Department would pay to the primary paying agent the lesser of the amount due for debt charges or the amount due the district in State education aid for the remainder of the fiscal year. If this amount is insufficient to pay the total amount then due the agent for the payment of debt charges, the Department will continue to withhold state education aid from the district and make payments to the agent each fiscal year thereafter until the full amount due the agent for unpaid debt charges is paid in full.
Participation in the Credit Enhancement program enhances marketability of bonds, providing a higher credit rating thus resulting in savings to the district over the life of the issue. This higher rating could not be achieved without state involvement or without the purchase of bond insurance at a significant cost to the district.
For questions regarding any of the information provided below, please email firstname.lastname@example.org.
Please Note: Applications and Bond Registrar Agreements received after April 1, 2019 will be processed under the requirements of this new rule that was effective April 1, 2019.
Requirements for Approval to Participate in the Program
Requirements to Submit Bond Registrar for Signature
Last Modified: 5/15/2019 5:39:58 PM