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<br />I <br />I <br />I <br />I <br />I <br />I <br />:1 <br />11 <br />I <br />I <br />I <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />Commercial Paper is not for everyone. Certain structural features generally <br />need to be in place before a successful commercial paper program can be <br />implanented. <br />1) The issue must be supported by certain bank lines, liquid assets or both <br />in amounts to cover all outstanding paper. <br />2) The issuer must be independently audited and <br />information in accordance with generally <br />principles. <br />3) The issue will generally be paid down entirely from revenues at least <br />once each year. <br />Construction financing using commercial paper is considered to carry a <br />higher degree of risk than IIOrking capital financing because repayment depends on <br />the issuer's ability to successfully enter the bond market at some future date. <br />This can be offset some'tAlat by the financial strength of the issuer or the <br />conservative nature of the financing. <br />Commercial paper can be placed directly with the lender or it can be <br />marketed through traditional investment banking channels. To date, in Colorado, <br />only the Platte River Power Authority has ,used commercial paper though the State, <br />the Denver Water Board (if the Charter permitted), Colorado Springs Department of <br />Utilities, Water Resources and Power Developnent Authority, and the Northern <br />Colorado Conservancy District Sub-District have sufficient size and cash flow <br />needs to warrant consideration. <br /> <br />must provide the <br />accepted accounting <br /> <br />Equipnent Leases <br /> <br />/ <br />Traditionally, tax-exempt equipnent leases are not considered short term <br /> <br /> <br />financing vehicles; however, they do provide an alternative to BANs in those <br /> <br /> <br />jurisdictions where a City is prevented from incurring debt without a vote or <br /> <br />6 <br />