Mississippi
Development Bank
Hurricane Katrina Relief Program
In the wake of Hurricane
Katrina, the Mississippi Development Bank, along with the State
Treasurer, have worked with and on behalf of affected local
governmental units in developing options to address their
anticipated capital and working capital needs in a time of tax
revenue interruption. These discussions and the local governmental
units’ capital needs led to the creation of the Mississippi
Development Bank Hurricane Katrina Relief Program.
The Mississippi
Development Bank Hurricane Katrina Relief Program is an emergency
finance program put in place to assist local governments with their
capital or working capital needs in the aftermath of Hurricane
Katrina.
- Program
will be a financing facility of up to $200,000,000.
- Needs
assessment will be conducted with local governmental units affected
by Hurricane Katrina.
- Based
upon need, bonds will be issued by the Mississippi Development Bank
in one of more series up to the maximum amount.
- Local
governmental units include cities, counties, utility districts,
publicly-owned hospitals, school districts or any other governmental
unit created under state law.
- Affected
local governments may apply for and receive loans from this financing
program for construction or reconstruction of public works and
infrastructure and the acquisition of equipment as well as working
capital and other cash flow needs in order for the local
governmental units to recover and to reestablish normal governmental
operations.
- Bonds
will be structured to allow payoff at any time based on the
availability of normal tax revenue or of federal reimbursements
under federal hurricane relief programs.
- Variable
interest rate (changes monthly).
- No
principal or interest payment for 2 years (interest capitalized).
- Loan
can be prepaid anytime with 30 days notice.
- Mandatory
redemption within 2 years.
- The
local Governmental Unit executes a loan agreement (no bond issue).
For
more information contact:
Bill
Barry, Mississippi Development Bank
601.355.6232 or bbarry@mbfc.cc
