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Does the NSMFC provide interim financing?The policy of the board is that only completed projects are financed through the issuance of debentures. The NSMFC does offer short-term financing and bridge financing to clients that have completed their capital projects and are waiting to participate in the debenture process. What interest rate does the NSMFC charge?The cost of the borrowing will vary, depending on the term of the debenture and market conditions. The pricing is based off the Province of Nova Scotia's cost of funds, plus a number of basis points for the NSMFC, depending on market conditions. The NSMFC also charges a fee for the reserve fund and to cover issuing costs. What are the benefits of borrowing from the NSMFC?Municipalities realize cost savings by borrowing from the NSMFC in at least three ways. The first is through the competitive rates that the NSMFC receives, due to the provincial guarantee. The second way is through the pooled administration of the municipal debentures. By having the NSMFC issue debentures on their behalf, municipalities avoid the costs of issuing and administering the debentures. The third way is through the pooling of debentures to a marketable size. Who can borrow from the NSMFC?Municipalities, municipal enterprises (with a municipal guarantee), regional school boards, and hospitals can borrow from the NSMFC, with the required ministerial approval. Is it possible to borrow from the NSMFC at any other time than the spring or fall debenture issues?Yes, the NSMFC will issue single-issue debentures (subject to board approval). The NSMFC also offers a short-term borrowing program and a bridge financing program. Both of these programs are for completed projects only. The short-term financing program was established to offer assistance for projects that are completed after the debenture issue has closed. The bridge financing program is for projects that are being funded under the Canada*Nova Scotia Infrastructure Works Program. Can the debenture be paid off prior to maturity?Debentures must be outstanding to maturity, that is they are not subject to redemption prior to maturity. When the NSMFC issues debentures the corporation is locked into the same maturity schedule including principal and interest payments as its clients. For this reason the NSMFC does not provide for early redemption of debentures. 
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