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| The Florida Municipal Loan Council also offers a short-term, variable-rate commercial paper program. Commercial paper borrowing has been used by some larger local governments but may not have been an alternative for many issuers because of the large initial amount required to achieve economies of scale. Through pooling the needs of many entities, the FMLC makes commercial paper feasible for both small and large governments. The Commercial Paper Program provides an alternative to the traditional fixed-rate debt for both short-term needs and possibly for diversification of the long-term debt portfolio. Tax-exempt commercial paper is purchased, trades and matures at par and is considered one of the lowest cost and most versatile securities of the short-term municipal market. The interest rate depends on market conditions on the day of sale. Tax-exempt commercial paper matures in nine months or less, pays interest upon maturity and can be "rolled over" until refinanced permanently or paid off. |
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| Contact Melanie Gillespie for more information at 1-800-342-8112, ext. 255 or mgillespie@flcities.com. |
