About the Higher Education Facilities Program
The Higher Education Facilities Program was created to finance a variety of projects for the higher education institutions including dormitories, athletic facilities, parking facilities and major equipment purchases.
In May 1967, the General Higher Educational Facilities Bond Resolution was adopted and bonds were issued to provide funds to make loans to the institutions of higher education. In April 1998, the Authority adopted the Higher Educational Facilities Second Program General Bond Resolution (“1998 Resolution”) with the same purpose and closed the 1967 Resolution. All higher education bonds are now issued pursuant to the 1998 Resolution.
The Authority entered into a Revolving Credit Agreement (“RCA”) with U.S. Bank, National Association and Wells Fargo Bank, National Association. The RCA will terminate at the close of business on March 19, 2020, unless terminated prior to such date in accordance with its terms. The loan proceeds are used to fund the construction phase of certain projects for higher education facilities. When a When a project is completed or near completion, long-term, fixed-rate debt may be issued to finance the project over its useful life repayment period and the proceeds from the issuance of debt are used to repay the RCA.