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Issuance of bonds create a win-win situation for all parties involved. Bonds benefit the borrower, the investors and the communities in which the projects are located.

Due to the tax-exempt status of bonds, investors benefit from the tax-free interest earnings received from the bonds. The interest income may be lower than other investments, but the tax savings may offset the difference.

The renovation of abandoned and deteriorating buildings, as well as the development of underutilized land revitalizes the surrounding community. The growth in business resulting from bond proceeds allow for the creation of jobs that are usually filled by local residents.

Over the past ten years, the "all-in" interest rate has averaged approximately 4.65%. During this same period, the bond interest rate was as low as 2.8% and the commercial interest rate indicators have consistently been higher than the tax-exempt interest rates.

Bonds typically reduce financing costs by 20% - 30% annually. In many cases these savings allow companies to purchase their leased facility or acquire a new property, allowing them to expand and increase the capacity of their operations.

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