PubFinCriteria_2006_part1_final1.qxp

Legal and security provisions

The legal and security provisions are also similar to

those found in revenue bond financings. In general,

the provider’s entire revenue stream will be pledged

and assigned to the payment of debt service. Other

legal provisions should include the presence of a

debt service reserve funded at maximum annual

debt service, appropriate security pledge, and assur-

ances that providers have made provision for suc-

cessors to meet debt service payments. Providers

also must meet published Standard & Poor’s guide-

lines on permitted investment.■

Health Care

174 Standard & Poor’s Public Finance Criteria 2007