Credit Enhancement Program

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The School District Credit Enhancement Program, provided for in Section 6-09.4-23 of the North Dakota Century Code (the “Program”), helps school districts reduce their cost of borrowing funds to finance projects.  The Program provides for a limited state guarantee for the repayment of school district bonds which results in a higher credit rating for the school district and lower interest rates on its bonds.  A school district must elect, by resolution of the school board, to participate in the Program.

Under the Program, if a school district is unable to make a bond payment, upon receipt of a notice of potential default, the state will make the payment three days prior to the bond payment date from funds due, or payable, or appropriated to the school district under Chapter 15.1-27 of the North Dakota Century Code

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