Escrow bidding can become confusing and counterproductive if the right structures and securities aren’t identified and vetted early in the process.

Key Decisions

When tax-exempt borrowers elect to refund callable fixed rate bonds prior to their scheduled call dates – known as an advance refunding – there are two investments that the borrower should consider:

  •  Subscribing to State and Local Government Securities (“SLGS”)
  •  Purchasing a portfolio of marketable securities

How We Help

KPM Financial works with tax-exempt borrowers and their counsel to:

  • Confirm the list of marketable securities available for purchase,
  • Determine whether the cost of these securities is lower than SLGS (i.e. – higher yield),
  • Bid the portfolio to competitive sellers in compliance with Treasury regulations, and
  • Provide a bidding agent certificate to the borrower that will be relied upon by tax counsel.