A picture of a board room setup for a meeting

County INTERCAP Loans

  • JUDGMENT
Repayment Option Borrowing Statutes Loan Term* Vote Req'd? Collateral
General Fund 2-9-316 10 year No N/A
General Obligation** 2-9-316, 7-7-2202 & 7-7-2221 15 year No Full faith, credit & taxing power pledge

  • ENERGY RETROFIT PROJECTS
Repayment Option Borrowing Statutes Loan Term* Vote Req'd? Collateral
General Fund 7-5-2306, 7-7-2101, 7-7-2201 & 7-7-2402 10 year No, unless over 7-7-2402 authorization Applicable Equipment
General Obligation** 7-7-2101 & 7-7-2201 15 year Yes Full faith, credit & taxing power pledge
Certified Engineer Cost Savings 7-5-2306, 7-7-2101, 7-7-2201 & 7-7-2402 10 year No, unless over 7-7-2402 authorization Applicable Equipment

  • NEW & USED EQUIPMENT
Repayment Option Borrowing Statutes Loan Term* Vote Req'd? Collateral
General Fund 7-5-2306, 7-7-2101, 7-7-2201 & 7-7-2402 10 year No, unless over 7-7-2402 authorization Applicable Equipment
General Obligation** 7-7-2101 & 7-7-2201 15 year Yes Full faith, credit & taxing power pledge

  • NEW & USED VEHICLES
Repayment Option Borrowing Statutes Loan Term* Vote Req'd? Collateral
General Fund 7-5-2306, 7-7-2101, 7-7-2201 & 7-7-2402 10 year No, unless over 7-7-2402 authorization First lien on vehicle
         

  • REAL PROPERTY PURCHASES & IMPROVEMENTS
Repayment Option Borrowing Statutes Loan Term* Vote Req'd? Collateral
General Fund 7-5-2306, 7-7-2101, 7-7-2201 & 7-7-2402 10 year No, unless over 7-7-2402 authorization None
General Obligation** 7-7-2101 & 7-7-2201 15 year Yes Full faith, credit & taxing power pledge

  • HEALTH CARE FACILITIES - COUNTY OPERATED
Repayment Option Borrowing Statutes Loan Term* Vote Req'd? Collateral
General Fund 7-5-2306, 7-7-2101, 7-7-2201 & 7-7-2402 10 year No, unless over 7-7-2402 authorization Applicable Equipment
General Obligation** 7-34-24, 7-7-2201, 7-7-2402 & 7-6-2512 15 year Yes Full faith, credit & taxing power pledge

  • SOLID WASTE PROJECTS
Repayment Option Borrowing Statutes Loan Term* Vote Req'd? Collateral
Revenue Bond*** 7-7-2501 & 75-10-112 15 year No, unless amount over 7-7-2402 authorization Revenue Pledge
General Fund 7-5-2306, 7-7-2101, 7-7-2201, 7-7-2402 & 75-10-112 10 year No, unless amount over 7-7-2402 authorization Applicable Equipment
General Obligation** 7-7-2101, 7-7-2201 & 75-10-112 15 year Yes Full faith, credit & taxing power pledge

  • INTERIM FINANCING FOR CONSTRUCTION OR CASH-FLOW LOANS
Repayment Option Borrowing Statutes Loan Term Bond Counsel Req'd? Collateral
Revenue Anticipation 7-6-11 Up to 1 year* No Tax/Revenue Pledge
Bond Anticipation 7-7-109 Up to 3 years Yes Written commitment**
Grant Anticipation 7-7-109 Up to 3 years No Written commitment**

* Revenue anticipation notes (RAN) must be repaid within the fiscal year they are borrowed.

**7-7-109(2)(b) Before the notes are issued, the political subdivision must receive a written commitment for the purchase of the bonds or for the grant or loan in an amount that in the aggregate is not less than the principal amount of the notes and shall by resolution agree to fulfill any conditions of the commitment.


  • RURAL IMPROVEMENT DISTRICT (RID) BONDS

• Rural Improvement District (RID) loans are payable from special assessments levied against the real property in the district.
• RIDs are not full faith and credit obligations of the county.
• All statutory requirements for establishing the Rural District must be met prior to the loan.
• County funds must secure the RID with a pledge to levy for and maintain their revolving fund to the maximum amount permitted by law.
• All local government RIDs and the balance in the revolving fund are subject to review as part of the loan process.
• Maximum loan limit is $500,000.
• Subject to 7-12-2171(b), loans in excess of $250,000 require underwriter opinions that the bonds are not marketable through competitive bond sale.  (Two opinions are sufficient).
• Maximum loan term is 15 years or useful life of the project, whichever is less.

 

 

* Eligible governments must adhere to State law when financing capital projects and cannot finance projects for a longer term than allowed. Board staff will consider the maximum loan term authorized in statute, as well as the repayment ability of the eligible borrower, when reviewing loan requests.  In addition, loan terms cannot exceed the useful life of the project being financed.

** Bond Counsel required.

*** Rates and charges must be set to generate net revenues to cover debt service by a factor of 1.25. The Board will require a reserve account (one year debt service or 10% of the loan, whichever is less).  Bond Counsel will be required to ensure parity bonds if Borrower has existing outstanding debt with the same revenue pledge


MONTANA BOARD OF INVESTMENTS | MONTANA DEPARTMENT OF COMMERCE
2401 COLONIAL DR, 3RD FLOOR | PO BOX 200126 | HELENA, MT 59620-0126 | P: 406-444-0001 | F: 406-449-6579 | TDD: 406-841-2702