Governance

Approved June 13, 2013 and amended on December 19, 2017



Payments not received in accordance with the loan agreement signed by the borrower, may be assessed a late payment penalty fee per section seven or section eight of the loan agreement.  Fees may be assessed at the following amounts:

(1)    The late penalty fee for the first late payment:                               $150

(2)    The late penalty fee for the second late payment:                         $250

(3)    The late penalty fee for the third late payment:                              $350 

(4)    The late penalty fee for the fourth late payment and beyond:     $500

Each late payment for multiple bond issues, due on the same date, will count as one occurrence. 

Chapter 35-A:24 - State Aid Intercept Provision.  If payment is not received by the due date, the State Treasurer has the authority to intercept funds payable by the state to any Governmental Unit being in default on its Municipal Bonds held by the Bank and previously appropriated from the state's general fund or its education trust, and redirect such funds to the Bank.

Chapter 35-A:30 - Upon the sale of issuance of any Municipal Bonds to the Bank by any Municipal Bonds to the Bank by any Governmental Unit, such Governmental Unit shall be held and be deemed to have agreed that in the event of the failure of such Governmental Unity to pay the interest on or the principal of any of such Municipal Bonds owned or held by the bank as and when due and payable, such Governmental Unit shall have waived all and any defenses to such nonpayment, and upon such nonpayment and demand upon such Governmental Unit for payment, if funds are not available in its treasury to pay the same, the governing body of such Governmental Unit shall forthwith assess a tax upon the assessment roll of the Governmental Unit, sufficient to pay the same with 12 percent interest thereon, and cause the same to be collected within 60 days.

Defined terms used herein and not otherwise defined, shall have the meanings given to such terms in the Bank's General Bond Resolution adopted on December 1, 1978, as supplemented from time to time.