PubFinCriteria_2006_part1_final1.qxp

(Nancy Kaufman) #1
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

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