Initial Issuance Costs
Issuance Costs | $2,000 per full million
Issuance costs are deducted from each draw. This fee is assessed on each full new million dollars borrowed, up to $20 million in total outstanding loans or $40,000 in issuance costs paid. Once a participant has paid the $40,000 in full, no issuance costs will be assessed for additional borrowings.
Example of Issuance Costs
- Participant makes initial $10 million draw and pays $20,000 is issuance costs.
- Participant pays down balance by $3 million leaving $7 million balance.
- Participants borrow an additional $2 million, however, pays no issuance fees due to participants total outstanding balance not exceeding the initial $10 million.
Interest | Variable
Interest is a blended market rate based on the actual interest rates for the Florida Local Government Finance Commission commercial paper. Please see rate chart for current and historical rate information for each series.
Letter of Credit Fee | Varies by Participant
J.P. Morgan Bank assesses a Letter of Credit fee based on the credit worthiness of the borrowing entity. The fee is determined in advance of the loan.
Dealer Fee | 8 Basis Points
The Commercial Paper remarketing agent, J.P. Morgan Securities LLC, receives this fee.
Administrative Fees | 18 Basis Points
A portion of this fee (10 BP) is paid to the Florida Association of Counties for administering and marketing the program. The remainder (8 BP) is paid to the Commission and used for all expenses associated with the program such as audit fees, legal fees, trustee fees, rating agency fees, etc.
Contingency Account | 1.75% x one month
A Contingency Account is established for each participant and is funded from loan proceeds. Funds are held in an interest-bearing account in the participant’s name. Interest earned is credited to the participant monthly. Rebates are made to coincide with any principal payments made. For example: $1 million balance would require a contingency balance of $1,458 and would be fully refunded upon loan repayment. The Contingency Account essentially serves as a mini reserve in case of a dramatic spike in commercial paper rates.
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