Communication is vital throughout all phases of the transaction, in order to facilitate a positive bond-financing for the borrower. The sooner you contact us regarding your proposed project, the better we can help you to understand the specifics of tax-exempt bond financing requirements.

In order to formally begin the application process, the prospective borrower executes a commitment letter and submits payment in the amount of $20,000 for the transaction, of which $5,000 represents CHEFA's total up-front fee. The remaining $15,000 will be used to offset cost of issuance. This fee is non-refundable, regardless of whether the CHEFA Board approves the proposed issue or it fails to close for any reason.

Some of the information needed from the borrower and responsibilities for the financing include the following:

• The scope and timing required for the project.
• Detailed project information.
• Five years' historical financial results, including utilization and demand statistics and sources of revenue.
• Required authorizations from the borrower's Board regarding the financing project.
• Information on current strategic plans, recent development activities and any other relevant information regarding the borrowing institution. This information will be used to create the "Appendix A," which is a critical piece of the bond offering document.
• Other bond issue requirements for completion according to the planning schedule to ensure the project can move forward. Some items required are environmental reviews, zoning and permit approvals, construction and other contracts and due diligence items.
• Selection of the financing team, including borrower's counsel and an investment banker.

Contact our New Business Department by e-mail or by calling (860) 520-4700.