Tifia Loan Agreement

Tifia Loan Agreement

The proceeds of yield bonds are blended with capitalization funds to provide loans at subsidized interest rates and to guarantee debt coverage. The debt service reserve is financed by the proceeds of the loan. The TIFIA Loan Indicative Term Sheet and Loan Agreement presentation reflect USDOT`s current credit policies. The roadmap contains some basic conditions for TIFIA credit support; However, the execution of a credit agreement and the subsequent disbursement of funds to a project are subject to the satisfactory conclusion of the USDOT credit quality check and the agreement of conditions acceptable to the USDOT. The credit agreement is the final agreement between the USDOT and the borrower (and, if applicable, the secured lender) which contains all the conditions under which the TIFIA credit assistance is granted. Jim has 27 years of experience in municipal finance, including 10 years in the public sector. As an investment banker, Jim has financed hundreds of infrastructure projects through a large number of tax-free and taxable instruments, including general bonds, industrial development performance bonds, corporate bonds, pool yield bonds, special tax bonds, loan grant and anticipation bonds, and tax and revenue anticipation notes. During his public sector activities, he has used credit guarantees, bonds, leasing agreements, advance credit notes, and grant advance notes to promote federal and California programs to support municipal infrastructure. The ability of governments to maximise the potential of their SIBs to finance transport investment needs can be enhanced through leverage, with regard to the issuance of bonds against the capitalisation of an SIB. This edition of IFQ focuses on the experience gained by South Carolina and Minnesota in using their SIBs to provide credit support for necessary public transportation projects.

As the expected cash flows did not support turnpike, which was building the interchange on a stand-alone basis, the Turnpike, the County and the operator/developer entered into an agreement where by which the Turnpike made available the $10 million in capital expenditures for the construction of the Interchange. The terms of the agreement require the operator/developer to make annual payments to the turnpike for servicing the computational debt (calculated by amortizing $10 million over 30 years at 5.91 percent interest) and operating and maintenance expenses (US$47,700 in the first year with an annual increase of 3 percent), net of gross revenue from transportation, which enters the arena during events and is relieved of traffic leaving the arena during periods of non-event. Since tolls are suspended for a certain period of time at the end of an arena event, the turnpike requires the operator/developer to pay a shadow toll corresponding to the shortfall. A notional toll is a toll that is paid to the operator by a person other than the user of the installation. With $4.0 billion in loans secured so far by the country`s SIBs, states have made great strides in implementing the SIB program and increasing investment in transportation infrastructure. . . .