Federal Leases

FGIC will review both new construction and renovation federal projects financed through the issuance of lease revenue bonds. Our credit review focuses on the essentiality of the project, mitigants to construction risk and residual value risk.

State Appropriation Leases

FGIC will consider both secured and unsecured certificates of participation and lease revenue bonds issued by states or appropriate conduit agencies. The credit factors we evaluate include legislative authorization for the project, the essentiality of the financing, and the requisite budgeting and appropriation processes.

Local Appropriation and Abatement Leases

FGIC provides credit enhancement for secured transactions for essential facilities. In California, our primary focus is secured transactions for traditional facilities, but non-traditional facilities, including equipment will also be considered. Given the earthquake risk, FGIC requires the completion of a seismic risk evaluation for all leased facilities.