Local
Government
The Pooled Bond Program
The IFA combines the borrowing needs of more than one unit
of local government in its Pooled Bond Program.
IFA then operates as a financing conduit. The IFA
purchases the local government securities (bonds) of the various
units of local government, and, in turn, issues its own obligations
(tax-exempt revenue bonds) on the financial markets.
The pooling process allows local governments to realize savings
that are achieved by sharing fixed costs and achieving economies of scale. These savings are both in terms of costs
as well as through the streamlining of various procedures and related
documents.
In addition, IFA Pooled Bond Issues may be supported
by the "moral obligation" of the State of Illinois. Interest earned
on the bonds is exempt from both State and federal income taxes.
The State's moral obligation backing and the double tax-exempt
status of the IFA's bonds both serve to lower the overall
borrowing rates of the local government participants.
To get started, click here for a simplified application:
Full application:
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