The Idaho School Bond Guaranty Act was created for the purpose of establishing a default avoidance program for voter-approved school bonds issued by Idaho public school districts.
In 2009 the Idaho legislature modified the program to allow two tiers of enhancement which include (1) enhancement by the State, and (2) enhancement by the State and Endowment Fund Investment Board (EFIB). Each option provides a different credit enhanced rating to the issuer of the bonds. The State enhancement will provide an Aa rating while the additional enhancement by the EFIB provides a credit rating of Aaa. The enhancement provided by the EFIB has been capped at $20 million per district.
The School District completes and submits the documents listed below to the Idaho State Treasurer’s Office (STO).
- The application will be reviewed by the STO, the EFIB, and the Department of Education (DOE). If approved, the school district will receive a Certificate of Eligibility from the STO and, if applicable, the EFIB.