SECTION 200:10-5-3. Target market for fund credit support

  The administrator will seek to complement the resources of private credit enhancement providers. To this end, the following categories of credit will be emphasized for Fund Insurance:

(1)   Public sector. In the public sector, entities which are, or would be, lower investment grade credit ratings, non-investment grade credit ratings, or non-ratable credits. This category includes not for profit organizations performing charitable activities in the nature of government services; and

(2)   Private sector. The proceeds of obligation to which credit enhancement is granted shall be used, except for unusual circumstances with exceptionally strong public benefits and for obligations approved pursuant to the Small Business Credit Enhancement Program and for obligations approved pursuant to the Quality Jobs Investment Program, for expansion capital to businesses and for improvements or additions to real or personal property for the benefit of private or nonprofit use borrowers. Use of the Fund for business buyouts or refinancing shall be minimal. The Authority shall give reasonable priority to loans in rural areas. In implementing the provisions of the Credit Enhancement Reserve Fund Act, the Authority shall generally limit the granting of credit enhancement by the Fund to high to moderate credit quality revenue bonds or other obligations of the Authority judged to be of low to moderate risk, meaning that an obligation to which credit enhancement is granted demonstrates a strong likelihood of repayment according to its terms. To the extent possible, the Fund shall be leveraged with private financial assistance for Fund-backed obligations for private or non-profit borrowers.

[Source: Amended at 10 Ok Reg 1583, eff 5-13-93; Amended at 12 Ok Reg 2177, eff 7-14-95]