Improving Economic Development by Providing Access to Capital
The LPFA acts as a conduit by passing payments from the borrower to the bondholder to reduce the borrower’s financing costs.
The LPFA issues bonds on behalf of a borrower, allowing the borrower to benefit from tax-exempt borrowing.
LPFA funds are not at risk in connection with a financing, and no funds of the State of Louisiana or any political subdivision thereof are at risk. Each LPFA bond contains language to that effect.
The marketplace determines if the bonds are marketable, not the LPFA.
Bonds issued by the LPFA are payable solely by the underlying borrower from the funds and assets pledged for each individual bond issue. The LPFA does not enhance the credit of the underlying borrower, and no LPFA funds are pledged for the payments of any bond issue.
The LPFA and its bond counsel analyze each project’s eligibility for tax-exempt bond financing as specified by federal law.
The LPFA does not assume the responsibility of determining the creditworthiness of a project or borrower, nor does it assume the resulting legal liability from making such a determination.