State Credit Enhancement Program
This page provides information on the State Credit Enhancement Program, a program that enhances the marketability of a school district's bonds as a result of the district pledging its School Foundation 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 (School Foundation payments) 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 School Foundation 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 pay 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.
State Credit Enhancement Program Documents
Last Modified: 3/24/2014 3:21:07 PM