A municipal bond bank is a state level entity which lends money to local governments within the state, with the goal of providing funds for their infrastructure needs and access to the capital markets at competitive interest rates.

Under the Idaho Municipal Bond Bank program "MBB", a municipality obtains a loan from the Bond Bank secured by either the municipality's bond or a loan agreement with the Bond Bank. The Bond Bank pools several loans to municipalities into one bond issue. The municipalities then repay the loan, and those repayments are used to repay the revenue bonds. The Bond Bank can obtain better credit ratings, more attractive interest rates, and lower underwriting costs than municipalities could achieve individually. The Bond Bank is able to pledge certain state funds as additional security for its bonds, further reducing interest costs.

The Bond Bank, by constitutional amendment, is relieved from certain state constitutional debt limitations and voter approval requirements. The Idaho Municipal Bond Bank can open doors to municipalities that were previously barred from the capital markets due to the high costs of financing or challenging credit situations.

• Idaho Statutes
  • Idaho Code 67-8703
  • Idaho Code 67-8709
  • Idaho Code 67-8720
  
  
• MBB Forms
  •  Bond Bank Loan Application
  
  
• Idaho Bond Bank Official Statements
  •  Official Statement 2007
  
  
• MBB FAQs
  • Who is eligible to participate?
    • Participation is open to all state agencies and to all political subdivisions including: Cities, Towns, Counties, Public Retirement Systems, Regional School Districts, Local Public Agencies, Public Health Districts, Irrigation and Soil Conservation Districts and Water and Sewer Districts.
    
    
  • What is the lending criteria?
    •  Idaho Municipal Bond Bank Lending Criteria
    
    
  • What is the cost to participate?
    • The amount of the charge to municipal borrowers will be determined by the size of the loan and the total number of borrowers, but is expected in all cases to be materially less than a municipality would incur for a similar financing on its own.
    
    
  • What type of borrowing needs will qualify?
    • Municipalities may apply to the Idaho Municipal Bond Bank for any loan that they are legally authorized to undertake by Idaho Law.
    
    
  • What is the application process?
    • Complete the application listed under “MBB Forms” on this page.
    • The MBB staff, Board of Directors, and advisors will review the application and other materials provided by the applicants.
    • Approved applicants can expect to receive financing from the MBB three to six months after an application has been approved.
  
  
• Submit Idaho Municipal Bond Bank Comments or Questions