Recommendations Regarding the Reinvestment of Financing Proceeds
Including Reserve Funds, If Applicable,
During Construction Period
In nearly every situation, the local governing
body tries hard to pare down the overall size
of the borrowing as much as it possibly can
without shorting the project. Reinvestment
income on the proceeds during construction can be a valuable and sometimes
critical source of funding to insure a quality final project. L.J. Hart &
Company is very sensitive to this aspect of its services and provides each
borrower with specific recommendations prior to closing the financing about what
types of investments are available in order to maximize reinvestment income
without unduly restricting flexibility to make monthly construction payments.
Whenever a debt service reserve fund is available, good reinvestment of those
funds can often recover much of the initial costs of issuance. These reviews are
part of the entire package provided at no additional charge to the client.
