I

indenture

• Indenture/Bond Resolution (General, Supplemental, and Series)
• 2.3 Structural Factors Addressing Risk and Investor Interests
  Ways the structure of a debt obligation may address risk and investor interests.
• 2.3.1 Redemption or Prepayment
  Use of a redemption or prepayment of principal to address risk or investor interest
• 3.1.6 Types of Debt Instruments
  Basic categories of debt instruments: bonds, notes, direct leases, and certificates of participation

index debt

• Index Debt
• 3.4.2.1 Index Debt
  The interest rate payable on a debt obligation is adjusted periodically in accordance a published index.

independent registered municipal advisor (IRMA)

• Municipal Advisor
• 6.2.1 Municipal Advisors and Underwriters

industrial development bonds (IDB)

• i.4.6 What Financing Options are Available
• 3.3.9.2 Small Manufacturing Facilities
  A type of conduit financing used to finance manufacturing facilities and directly related and ancillary facilities.
• 4.7.1.5 Qualified Small-Issue Bonds (See “California Debt Limit Allocation Committee annual flings,” “qualified private activity bond categories – qualified small-issue bonds” and “volume cap”)
  A category of private activity bond

initiative power

• Initiative Power
• 1.4 Local Government Revenue Sources -Security for and Repayment of Debt
  Sources of revenue available to local governments to repay debt obligations.
• 1.6 The Initiative and Referendum Powers
  The ability of the voters to effect changes to the State Constitution through Initiative or Referendum.
• 1.7 Historical Overview of Voter-Approved Limitations on Local Government Revenues
  Summary of state-level initiatives directed at the fiscal affairs of California state and local government.
• A.1 California Consitution Provisions Relating to Local Public Agency Debt

• impact on debt
  • 1.6.1 Initiative Power and its Impact on Debt

installment sale agreements

• Installment Sale Agreement/Installment Purchase Contract
• Certificate of Participation (COP)
• i.4.6 What Financing Options are Available
• 2.4 Other Common Document Provisions
  Structural features of debt obligations often contained in bond documents.
• 3.3.6.2 Public Enterprise Revenue Installment Sale Agreements
• 3.6 Unique Public Agency Financing to Address Legal Constraints
  Certain debt obligations were created to address potential hurdles California public agencies may face in issuing debt.
• 3.6.1 Financing Leases
  The public agency obtains financing by entering into a lease for which it makes rental payments
• 3.6.2 Installment Sale Agreements
  Installment sale agreement financings are based on a public agency’s legal authority to purchase property and to appropriate annual funds to meet this obligation.
• 3.6.3 Certificates of Participation
  A debt obligatins that involve selling the the right to receive the payments under a lease agreement to other parties.
• 3.7.1 Direct Loans
  A direct loan is an extension of credit by a bank or other financial institution to a public agency borrower.
• 3.7.2 Direct Leases
  The direct lease (or lease-purchase) structure is most often used to finance the acquisition of equipment such as fire trucks.
• 5.5.2 Direct Loans (See “certificates of participation”)
  

interest rate

• Interest/Interest Rate
• i.4.2.4 Decision #4 – Select an interest rate type
• i.4.2.6 Decision #6 – Decide whether the debt will be tax-exempt
• i.4.6 What Financing Options are Available
• 2.1 Overview
  Factors determining structure, including issuer, term, source of repayment, and debt limits.
• 2.2.2 Term and Interest Rate Mode
  Structural features: terms and interest rate mode.
• 2.2.2.1 Long-Term, Fixed-Rate Debt
• 2.2.2.3 Variable-Rate Debt
• 2.3.3 Interest Rate Swaps and Synthetic Structures
  Changing the substantive financial terms of a debt from a fixed-rate obligation to a variable-rate
• 3.1.2 Payment Term and Interest Rate
  Terms of the repayment
• 3.4 Interest Rate and Payment Terms
  A category of debt obligation organized around the interest rate and payment terms of the debt obligations.
• 3.4.1 Long-Term, Fixed-Rate Debt
• 3.4.2 Long-Term, Variable-Rate Debt

interest rate caps, floors, and collars

• Derivative
• 2.3.3 Interest Rate Swaps and Synthetic Structures
  Changing the substantive financial terms of a debt from a fixed-rate obligation to a variable-rate obligation

interest rate mode conversion

• 3.4.2.2 Tender or Demand Obligations
  Long-term obligations that achieve short-term interest rates by offering a “tender” or “put” feature.

interest rate risk

• 2.2.2.3 Variable-Rate Debt

interest rate swaps and synthetic structures

• Interest Rate Swap
• Derivative
• 2.3.3 Interest Rate Swaps and Synthetic Structures
  Changing the substantive financial terms of a debt from a fixed-rate obligation to a variable-rate obligation
• 8.3.4 Monitoring Investment Income and Arbitrage Compliance
• A.6 General Bond Statutes (See “hedging”)

intergenerational equity

• i.2.1 Decision #1 – What is the right source of funding?
• i.2.2 Decision #2 – What is the right source of financing?
• 2.2.2 Term and Interest Rate Mode
  Structural features: terms and interest rate mode.

interim financing

• 2.2.2 Term and Interest Rate Mode
  Structural features: terms and interest rate mode.
• 2.2.2.2 Short-Term Debt
• 3.4.3 Commercial Paper
  A debt obligation that involves the issuance and marketing of short-term notes.
• 3.7.3 Bond Anticipation Notes and Grant Anticipation Notes
  Bond anticipation notes (BANs) are notes issued in advance, generally several years in advance, of the expected date of long-term financing for a project.
• B.1.5.2 Bond Anticipation Notes

Internal Revenue Code of 1986

• Tax Code
• Treasury Regulations
• i.3.2.2 Legal Responsibilities Under the IRS Tax Code
• 3.7.6 Refunding Bonds
  Refunding obligations are any municipal debt obligations used to pay principal, interest and premium on other municipal debt.
• Chapter 4. Federal and State Tax Law Requirements (See “private activity bonds”)

• Tax Code
  • i.4.5 Issuing Tax-Exempt Debt
  • i.4.5.1 Requirement #1 – The debt must be issued by a qualified issuer
  • i.4.5.2 Requirement #2 – The debt must finance a qualifying project and satisfy ongoing requirements and limitations regarding the use of the project
  • i.4.5.3 Requirement #3 – Manage the arbitrage rules
  • i.5.1.1 Debt Management Policies

investment agreements

• Investment agreement
• Guaranteed Investment Contract (GIC)
• 4.8.3.2 Guaranteed Investment Contracts
• 9.4.2 Investments Specific to Bond Funds
• 9.5.2 Investment Considerations (See “guaranteed investment contracts”)
  Issuer considerations regarding investment of bond funds.

investment considerations

• 9.3.3 Investment Policies
  Role of investment policies in the investment of bond funds.
• 9.5.2 Investment Considerations
  Issuer considerations regarding investment of bond funds.

investment policies

• i.5.1.1 Debt Management Policies
• 9.1 A Team Approach to Investing Bond Funds
  Designing and implementing an investment strategy that maximizes earnings, while ensuring the safety and liquidity of invested funds and complying with federal tax law, is an important component of minimizing overall, or “net,” borrowing costs.
• 9.3 Investment Authority and Controlling Documents
  Investment authority and controlling documents regarding the investment of bond funds.
• 9.3.2 Bond Document Provisions
  Role of bond documents in the investment of bond funds.
• 9.3.3 Investment Policies
  Role of investment policies in the investment of bond funds.
• 9.6 Investment Review and Oversight
  The importance of review and oversight in the management of bond fund investments.

investment of bond proceeds

• Investment of Proceeds
• Negative Arbitrage
• i.3.2.2 Legal Responsibilities Under the IRS Tax Code
• i.5.1.1 Debt Management Policies
• 2.4.6.3 Additional Debt Test Calculations
• 4.8.2 Bond Proceeds
  Different arbitrage rules apply to different categories of bond proceeds
• 8.3.4 Monitoring Investment Income and Arbitrage Compliance
• 8.3.6 Recordkeeping and Retention
• 9.4.1 Permitted Investments (See “bond funds management – investing bond proceeds”)
  Types of investment vehicles that may be used to invest bond funds.

investor relations

• i.3.2.1 Compliance with Municipal Securities Laws – Disclosure
• i.5.1 Managing Your Agency’s Debt Financings
• i.5.1.3 Investor Relations Policies
• i.5.2 California Review and Reporting Requirements on Bonds
• i.5.2.3 Conduit Issuer Reporting
• 5.8 Improving Transparency and Investor Access to the Municipal Market
  The use of investor websites and EMMA among other technologies to communicate with market participants.
• 5.8.1 Investor Relations and Outreach
• 8.5.4 Managing Disclosure Risk
  Approaches to managing the risk improper disclosure.

• questions from investors
  • 8.5.3 Questions from Investors
    Issuer considerations when responding to investor questions.
• websites
  • 5.8.1 Investor Relations and Outreach
  • 8.5.2 Informal Statements and Websites
  • 8.5.4 Managing Disclosure Risk (See “Electronic Municipal Market Access (EMMA)”)
    Approaches to managing the risk improper disclosure.

investors

• Investors/Institutional Investors/Retail Investors
• i.2.2 Decision #2 – What is the right source of financing?
• i.2.3 Decision #3 – Can the municipal market help the public agency meet its capital financing needs?
• i.3.2 Legal Responsibilities of Issuers of Municipal Securities
• i.4.1.2 Issuance Phase
• i.4.2.5 Decision #5 – Understand what the agency commits to do in the future
• i.4.2.7 Decision #7 – Evaluate municipal market opportunities to use debt financing
• i.5.1.3 Investor Relations Policies
• 5.7 How Bonds Are Marketed to Investors
  In an effort to achieve the financing objectives of the issuer, including the lowest interest costs, a public agency issuer may seek to market a debt issuance to investors in a particular market

• institutional
  • 2.2.2.3 Variable-Rate Debt
  • 5.6 Credit Ratings
    Credit ratings reflect the opinion of the credit rating agency as to the probability that interest or principal payments on a security will not be paid in full and on time.
  • 5.7.2 Targeting Investors
• marketing strategy
  • 5.7.1 Marketing Strategy
  • 6.2.1 Municipal Advisors and Underwriters
  • 6.4 Other Marketing Activities and Other Public Statements
• retail
  • 5.7.2 Targeting Investors
  • 5.8 Improving Transparency and Investor Access to the Municipal Market
    The use of investor websites and EMMA among other technologies to communicate with market participants.
• sophisticated investor
  • 2.2.2.1 Long-Term, Fixed-Rate Debt
  • 5.5 Private Placements
    Private placements are sale transactions in which the issuer sells the entire issue of debt to a single or to a limited number of investors.

issuer responsibilities

• Issuer
• Introduction
• i.1 Understand Your Public Agency
• i.2 Decide Whether Debt Financings Is Appropriate For Your Agency
• i.3 Apply the Appropriate Analysis to the Decision to Use Debt Financing
• i.4 Lead the Process of Issuing Your Debt
• i.5 Manage Your Debt After It Is Issued
• 6.1.2 Governing Board Responsibilities
  Role of governing board in complying with federal securities laws.

issuer types

• Issuer
• Joint Powers Authority
• 4.2 Obligations of a State or a Political Subdivision
• Figure B-1 Statutory Debt Limits (See “conduit financing” and “Joint Exercise of Powers Agency (JPA)”)

• 63-20 Corporations
  • 4.2.3.2 63-20 Corporations
• Constituted Authorities
  • i.4.5.1 Requirement #1 – The debt must be issued by a qualified issuer
  • 4.2.3.1 Constituted Authorities
• On-Behalf of
  • 4.2.3 “On Behalf of” Issuers
    “On behalf of” Issuers defined for the purposes of the Tax Code.