Policy for Monitoring the Credit Quality of Governmental Units

Policy for Monitoring the Credit Quality of Governmental Units

Purpose

The Board of Directors (the “Board”) of the New Hampshire Municipal Bond Bank (the “Bank”) has adopted this policy for monitoring the credit quality of governmental units to remain current on the financial condition of the major governmental units in the New Hampshire Municipal Bond Bank’s portfolio, to advise the Bond Bank Board of the credit quality of the major governmental units and monitor the status of IRS compliance by governmental units

Goal

To maintain the portfolio’s credit strength and insure timely debt service payments

Objective

• Maintain a summary of the credit quality of the portfolio, for borrowers under both the 1978 and 2005 Resolutions, with more than 1% of the Bank’s total debt outstanding
• Provide summary of credit quality of governmental units to the Board annually
• Maintain tax-exempt status of bond issues
• Maintain monitoring procedures
• Identify any potential credit issues and provide guidance