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MATCH Program - Qualifying Requirements
The MATCH program is designed to encourage and attract financially strong companies to North Dakota. The program is targeted to manufacturing, processing and value-added industries.
Through this program, BND will participate in loans to financially strong companies and provide interest rates at some of the lowest in the nation.
Borrower - The primary candidates for this program are businesses that create new
wealth for the state and provide new jobs outside of the retail sector.
These companies shall also provide evidence of considerable financial strength,
as demonstrated by a long-term credit rating in the "A" category
from a national rating agency. If the company does not have a rating or
chooses not to obtain such a rating the following substitutions may be
made: 1) credit enhancement by a financial institution, 2) guarantee from
a federal guaranty agency or another company with a long term rating in
the "A" category from a nationally recognized rating agency,
and 3) the company may pledge a certificate of deposit or marketable securities
of a quality and level satisfactory to BND. If the company's rating is
down-graded below the upper medium grade the rate of the loan will increase
to a market rate. In addition, financial institutions which do not have
an "A" rating but have an established Fed Funds borrowing line
at BND can provide the letter of credit on behalf of the borrower. The
letter of credit shall provide 100% coverage for BND's portion of the loan
and cannot exceed 50% of the Fed Funds line.
Financial institutions will also have the option to pledge Fed Book entry securities to collateralize their letter of credit if they do not have an upper medium grade rating or have a Fed Funds line established at BND.
Use of Proceeds - Loan funds may be used to finance real estate, machinery and equipment and for the purchase or leasing of equipment.
Collateral - To secure the loan, BND requires first lien position on real estate, equipment and other security as may be appropriate. A corporate guaranty may be necessary, if the borrower is a subsidiary and cannot meet the financial strength requirements on a stand alone basis.
Application Process
Application by a lead lender is required for BND's participation. See application
for additional documentation required when submitting a request to BND.
Lead lender is responsible for servicing the loan.
Interest Rate
BND's portion of the loan is available at an interest rate equal to an
equivalent term U.S. Treasury Note rate plus .25% - .50% for all borrowers
which have an "A" rating. The interest rate may be adjusted periodically
throughout the term of the loan depending upon the conditions of the MATCH
funding and the ability of the Borrower to maintain its "A" rating.
If the Fed Funds line formula is used by a financial institution providing
a letter of credit, the rate that BND will net is equal to an equivalent
term U.S. Treasury Note rate plus .50% - .75%.
Repayment Terms
The term of the loan will vary depending on the loan purpose with a maximum of 15 years.
Fees
The lead financial institution may charge an origination fee of up to 1% of the total loan amount which is shared with BND.
For more information about this program or other Bank of North Dakota programs,
contact:
Bank of North Dakota
700 East Main Ave
PO Box 5509
Bismarck ND 58502-5509
(701) 328-5671
1-800-472-2166 ext. 5671
TDD (Telephone Device for the Deaf) 1-800-643-3916
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