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INDIANA BOND BANK $1.1 MILLION HELP BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, March 8 /PRNewswire/ -- Indiana Bond Bank's $1.145 million Hoosier Equipment Lease Purchase (HELP) Program Bonds, Series 1993A, are rated "A" by Fitch. The bonds are scheduled to be sold through negotiation by Norwest Investment Services, Inc., on or about March 9. The credit trend is stable.
 The Indiana Bond Bank's HELP program provides short-term financing of up to five years to local governments to acquire equipment through a master lease arrangement.
 The "A" rating reflects the program's strong participant oversight and repayment record, the relatively small amount of debt involved, strong state credit fundamentals, and enhancement provided by the state's expressed commitment to restore the debt service reserve fund if there is a deficiency. The debt service reserve is equal to 10 percent of proceeds, which is less than maximum annual debt service, because of the short bond term. However, the bond bank is required to use its best efforts to provide loan diversification so that no one participant's annual lease obligation exceeds 15 percent of the pool's aggregate annual lease payments. Sufficient time is provided in the legislative and appropriation process to act on a debt service reserve make-up request by the bond bank chairman, should it be necessary.
 The bond bank chairman must certify to the state's general assembly by Dec. 1 of each year if there is a debt service reserve deficiency. The general assembly may appropriate moneys to correct the deficiency, but there is no assurance that they would appropriate the funds. However, the bond bank plays an integral role in assisting local governments to meet their capital financing needs. Including this issuance, HELP bonds outstanding will total about $12 million, which is a relatively small amount of debt. Bond bank programs appear to enjoy wide support in the legislative and executive branches of state government. The bond bank has over $400 million in bonds outstanding eligible for the debt service reserve make-up. The repayment record of all bond bank participants has been strong to date and the debt service reserve make-up provision has never been needed.
 Indiana enjoys a stable economic posture, with its base dominated by manufacturing and agriculture. Business expansion has occurred over the past decade, following the very severe recession of the early 1980s, and economic diversity has improved. Financial operations are maintained conservatively and while the general fund balance is expected to be depleted at the end of the current year, the rainy day fund is expected to hold a balance in excess of 4 percent of expenditures. Revenue growth has slowed, and expenditure management remains an important element in financial operations.
 -0- 3/8/93
 /CONTACT: Stewart Simon, 212-908-0508, or Ruth Corson, 212-908-0596, both of Fitch/


CO: Indiana Bond Bank ST: Indiana IN: FIN SU: RTG

GK -- NY063 -- 4060 03/08/93 13:34 EST
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Date:Mar 8, 1993
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