Refunding Policy

It is the policy of the New Hampshire Municipal Bond Bank (the “Bond Bank”) to advance refund (taxable) and current refund bonds whenever desired savings goals can be achieved. This refunding policy shall clarify those goals.

Current Refundings: The Bond Bank shall not issue bonds solely to current refund bonds (in other words, a stand-alone bond issue) unless the par amount of the bonds refunded is at least $30 million with net present value savings of at least 3.00% of the amount refunded. Any deviation will have to be decided by the Chairman of the Board of Directors (or the Vice Chairman in the absence of the Chairman) in consultation with the Executive Director and Financial Advisor (or alternately by a majority of the Board of Directors in consultation with the Executive Director and Financial Advisor).

If a current refunding is issued along with another series of bonds the minimum size and savings goals shall be determined by a majority of the Board of Directors in consultation with the Executive Director and Financial Advisor.

Advanced Refundings (taxable): The Bond Bank shall not proceed with an advanced refunding on a taxable basis unless the par amount of the bonds refunded is at least $30 million with net present value savings of at least 3.00% of the amount refunded. Deviations will be decided by the same method as deviations in current refundings.

Guidelines Regarding Refunding Savings: The Bond Bank may return up to 100% of the gross savings, net of cost, generated by a refunding to the participating communities. The Bond Bank shall retain 100% of the savings generated by refundings of prior refundings and savings from refundings of the Bond Bank’s reserve fund bonds.