Municipal Services

Non-Arbitrage Loan

IRS regulations allow municipalities to borrow an amount of money equal to the maximum cumulative negative cash flow for the current fiscal year plus anticipated expenditures for the month following the largest deficit. The municipality must provide cash flow projections for the year in the form of a cash flow certificate.

This type of municipal loan includes the following features:

• Loan proceeds are placed in a CD at a higher rate than the interest on the loan
• The municipality "earns interest" on the loan
• Terms to fit your needs

Stop by and speak with a member of our Municipal Team to learn more.