Maximum 2.4% interest rate.
Up to 30-year maturity for clean water loans.
Up to 20-year maturity for drinking water loans.
Interim loan financing available: interim interest rate charged is one-half the Bond Buyer MMD AAA index; one time origination fee between $500-1000.
Costs of issuance (excluding local bond counsel) may be financed at closing of permanent loan.
A semiannual administrative fee of 0.15% of the outstanding principal of a permanently financed loan is charged to support the administrative costs of the MCWT.
Loan proceeds, once permanently financed, must be expended within 2 years of closing.
Loans are most typically a general obligation of the borrower.
MCWT bonds are rated AAA by all three rating agencies.
Diverse make-up of borrower pool (292 governmental entities) across the Commonwealth.
MCWT has ability to intercept extensive state local aid payments to communities in case of default.