Series 50: Bond Banks

Taken from our Series 50 Online Guide

Bond Banks

If a community is small, has a low credit rating, or meets other obstacles to financing, it can get help from a bond bank. A bond bank is an entity run by the state that can help smaller municipalities borrow money at lower interest rates than they could get on their own.

When using a bond bank, a community borrows funds from the bond bank and then pays interest and principal to the bond bank ra

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