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ND Public Finance Authority |
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The ND Public Finance Authority (PFA) is an agency of the State of North Dakota which issues bonds to make funds available for loans to political subdivisions and other qualifying organizations.
| CAPITAL FINANCING PROGRAM (CFP): |
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The PFA makes loans to political subdivisions of North Dakota under the CFP for the purpose of financing legally authorized projects or improvements. |
| STATE REVOLVING FUND PROGRAM (SRFP): |
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Under the SRFP, the PFA makes loans to political subdivisions for the purpose of financing authorized projects under the Clean Water Act and the Safe Drinking Water Act, including wastewater treatment facilities and public water systems. |
| SCHOOL CONSTRUCTION FINANCING PROGRAM (SCFP): |
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The SCFP has been established to provide low-interest, low-cost loans to school districts which have construction projects approved by the ND Department of Public Instruction. Under the SCFP, school districts have the opportunity to pool their construction loan needs each year, thereby reducing the cost of issuance. |
| INDUSTRIAL DEVELOPMENT BOND PROGRAM (IDBP): |
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Under its IDBP, the Authority makes loans to manufacturers that qualify as small issue manufacturers. For those manufacturers that qualify, the IDBP provides a way for them to use tax-exempt bonds to finance the purchase of buildings and/or equipment. |
| WHO QUALIFIES: |
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Loans are made under the CFP and SRFP to North Dakota political subdivisions. The term "political subdivision" means a political subdivision of North Dakota or an agency or authority of a political subdivision of North Dakota as authorized by law, including any member-owned association, nonprofit corporation, or similar entity or organization established and organized primarily for operating a public water system that is subject to NDCC 61-28, or any facility, system or other related activity that is eligible for financial assistance under NDCC 61-28.2.
Loans are made under the IDBP to manufacturers that are considered qualified small issue manufacturers. Within the Internal Revenue Code, small issue manufacturers are defined as "Any facility which is used in the manufacturing or production of tangible personal property including the process resulting in a change of the condition of such property." Within that definition, the qualifying organizations must also meet a capital spending requirement.
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| INTEREST RATES: |
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Under the CFP, SCFP and IDBP, the interest rates payable by the borrower are market rates set at the time of the bond sale. The PFA and the ND Department of Health jointly determine the SRFP's below-market rate. |
| FEES: |
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Under all programs, the political subdivision is responsible for retaining and compensating its bond counsel.
CFP, SCFP and IDBP fees are based on the dollar amount of municipal securities issued and generally include underwriter's fees, administrative fees and letter of credit fees.
The SRFP currently charges an annual administrative fee which is 0.5 percent of the outstanding loan balance.
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| CONTACT: |
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- Tim C. Porter, Executive Director
ND Public Finance Authority - 700 East Main Avenue
PO Box 5509 - Bismarck, ND 58506-5509
701-328-7100 or 800-526-3509 - Fax: 701-328-7130
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www.nd.gov/pfa
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Last Updated ( Monday, December 24, 2007 )
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