STATEHOUSE (July 15, 2019) – Gov. Eric Holcomb recently signed a bill into law co-authored by State Rep. Mike Karickhoff (R-Kokomo) helping save Hoosier taxpayer dollars.
Karickhoff said the new law allows the Indiana Bond Bank to create a special purpose vehicle credit enhancement program to help local units of government borrow money at lower interest rates. The Indiana Bond Bank serves Indiana cities, towns, townships, public school corporations, counties, public libraries, county hospitals and public universities.
“As a state, we have saved millions of taxpayer dollars by securing and maintaining a AAA credit rating,” Karickhoff said. “We can further save tax dollars by providing lower-rated and unrated local units of government a mechanism for obtaining higher credit ratings in order to lower their borrowing costs.”
According to the Office of the Indiana Treasurer of State, frequently the Indiana Bond Bank is used as a “lender of last resort.” Karickhoff said the special purpose vehicle credit enhancement program will provide an opportunity for those communities to get a higher credit rating and lower their borrowing costs.
“We are so excited to have this opportunity to further the mission and purpose of the Indiana Bond Bank,” said Indiana Treasurer of State Kelly Mitchell, chair of the IBB board. “IBB serves every corner of the state and House Enrolled Act 1473 provides one more tool to assist local communities as they work to serve Hoosiers.”
For more about the Indiana Bank and forthcoming information about the launch of the special purpose vehicle (SPV) credit enhancement program, click here.
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Indiana Bond Bank: The Indiana Bond Bank is a quasi-governmental agency established by the Indiana General Assembly in 1984. The Bond Bank is a self-funded entity and does not receive any appropriations from the State of Indiana. The primary mission of the Bond Bank is to assist local units of government in the process of issuing debt. The Bond Bank serves Indiana cities, towns, townships, public school corporations, counties, public libraries, county hospitals, and public universities.
State Rep. Mike Karickhoff (R-Kokomo) represents House District 30,
which includes portions of Grant and Howard counties.
