Friday, November 6, 2009

TN State School Bond Authority Finalizes Plans on School Construction Bonds

The TSSBA finalized plans to sell up to $184 million worth of Qualified School Construction Bonds (QSCBs) as part of a program created by the federal American Recovery and Reinvestment Act. The authority selected a bond underwriting team, approved a final bond resolution and finalized documents needed to move forward with the bond sale. The TSSBA had preliminarily approved the loans in September and, after some revisions in loan amounts and the addition of the City of Kingsport as a new borrower, the revised list of project loans were approved by the TSSBA.

The communities authorized to receive portions of the bond money will be required to spend the proceeds on qualified projects within three years of the bond sale and comply with federal Davis-Bacon regulations. The sale is expected to be completed with bond proceeds available for disbursement in early December. Additionally, the communities are required to enter into binding contracts for at least 10 percent of their allocation of the bond proceeds within six months after the bond sale.

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