Ohio Credit Enhancement Program

The Ohio Credit Enhancement Program improves the marketability of a school district's bond issuance 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.

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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 program enhances marketability of bonds by providing a higher credit rating for the issuance thus resulting in savings to the district over the life of the issue. This higher rating could not be achieved without state involvement or the purchase of bond insurance at a significant cost to the district.

For questions regarding any of the information provided here, please email bond.finance@education.ohio.gov.
 

Governing Authority

• ORC 3317.18 Education Department May Withhold Payments Due District in Order to Pay Debt Charges on Securities
• OAC 3301-8-1 Rules for the payment of debt charges under the state credit enhancement program

 

Requirements for Approval to Participate in the Program

• Credit Enhancement Program Application Part I: When Requesting Approval to Participate *NEW -  11/2/2023* 

 

• CEP Debt Schedules Example – Two Payments 
• CEP Debt Schedules Example – Four or More Payments
• CEP Debt Schedules Example - Bonds With Subsidy Credits and Sequestration

• CEP Ratios Calculation Worksheet – Two Payments 
• CEP Ratios Calculation Worksheet – Four or More Payments

 

Requirements to Submit Bond Registrar for Signature

• Credit Enhancement Program Application Part II: When Submitting Bond Registrar Agreement *NEW -  11/2/2023* 
• CEP Paying Agent Certification*NEW -  11/2/2023*

Last Modified: 11/2/2023 12:28:39 PM

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