UDIDA

The UDIDA provides conduit financing under the Economic Development Financing Law. A qualified business, such as a IRC 501(c)(3) (non-profit entity), will qualify for financing with a lending institution. The UDIDA will issue tax-exempt government bonds to finance the project. The lending institution will enter into an agreement with both the UDIDA and the business, that the business will pay the debt to pay the bond holders. The banks can charge lower interest rates to the business because of the tax-exempt characterization of the bonds issued through a municipal authority, such as the UDIDA. The UDIDA has no liability to pay the bond holders, the business does... A project such as this requires bond counsel, a financial adviser, a lending institution, an underwriter, and a solicitor (the counsel for the UDIDA). A closing will occur, similar to when you obtain a mortgage on your home. The lending institution will issue the cash to the business, in exchange for a pledge to pay by the..

Also known as: Upper Dauphin Industrial Development Authority

Primary location: Elizabethville United States