Catherine Provencher -- State Treasurer |  Frequently Asked Questions (FAQ)  
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 Bonds/Debt Management 


• Can I buy New Hampshire bonds directly from the State of New Hampshire?
• How do I buy tax free state municipal bonds?
• How does the State Issue General Obligation Debt?
• In what form are New Hampshire Bonds issued?
• What is State Guaranteed Debt?
• How much debt does the State have?
• What is debt used for?
• How can I obtain a copy of an Official Statement or other State disclosure information for a particular bond issue?
• Does the State of New Hampshire still issue College Savings Bonds?
• I own State of New Hampshire Bonds and I have a question concerning General Obligation Bonds.
• How are New Hampshire General Obligation Bonds rated?
• Are all State of New Hampshire bonds tax-exempt?
• If State of New Hampshire bonds are tax-exempt, do I have to report them on my tax forms?
• I am interested in obtaining information about bonds issued by a State Authority or Agency, whom should I contact?
• Can the New Hampshire State Treasury help me with my United States Savings Bonds?




 BidNH 


• What is a BidNH online auction ?
• What is the BidNH online auction process for certificates of deposit?
• What are the Stakeholder Benefits of the BidNH Online Auction Process?



 Interest Rate Judgments 

• What is the interest rate on judgments?

No. You must buy these bonds through a registered broker/dealer. The New Hampshire State Treasury can not and does not endorse any particular broker/dealer. The Treasury coordinates the issuance of general obligation bonds and New Hampshire Turnpike System Revenue bonds. The following organizations also issue tax exempt bonds from time to time: the New Hampshire Municipal Bond Bank, the New Hampshire Housing Finance Authority, the New Hampshire Health and Education Facilities Authority and the Business Finance Authority.

Bonds issued by the State of New Hampshire may be purchased in the primary or secondary market from brokers, and in some cases, underwriting banks and financial institutions.

Some investors also invest in tax-exempt mutual funds. Please call your investment advisor for further details. Commissions and fees vary by firms. Many investors shop around for the best combination of service and fees for their interests. The State Treasury is not permitted to provide investment advice. Also, please check with your tax advisor to determine the types of securities that meet your tax reporting needs.

The State Treasury issues debt only after it is authorized by the legislature and becomes a law. The full faith and credit of the State is pledged to the payment of the State's general obligation bonds and notes. The State issues debt either in the form of long-term bonds or short-term bond anticipation notes. Except in certain circumstances, the State issues general obligation bonds through a competitive sale. The Treasurer accepts bids from municipal underwriting firms to buy the bonds. The underwriting firms, following the purchase, sell the bonds to individual and institutional investors. The coupon is the interest rate paid by the State on a bond or note. The yield is the actual rate of return to the investor, reflecting any premium (purchasing a bond or note at more than the face value) or a discount (purchasing a bond or note at less than the face value), on the security. The State also issues bond anticipation notes (short-term bonds) in anticipation of selling long term bonds. Currently, the State markets its bond anticipation notes in the form of commercial paper, maturing from one to 270 days after issuance. As the commercial paper matures, the paper is remarketed by the selected underwriter either to the same or a different purchaser. Each time the paper is remarketed, a new interest rate is set. As the term of this paper is relatively short, compared to long-term bonds, interest rates on the commercial paper are relatively low.

Since 1987, State of New Hampshire bonds generally have been issued in $5,000 denominations as fully registered book entry bonds, without physical certificates or coupons to clip. Bond transactions are recorded in electronic computerized book entry form by the Depository Trust Company ("DTC"), a New York limited purpose trust company and member of the Federal Reserve System. DTC is also a registered clearing agency under the Securities Exchange Act of 1934, and holds securities for participants. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. Purchase of the book entry bonds under the DTC system must be made by or through the Direct Participants who will receive a credit for the bonds on DTC's computerized records. The Direct or Indirect Participants are in turn responsible for keeping accurate records of their individual client's holdings and issuing written transaction confirmations and periodic account statements to the individual clients. Under this system individual bondholders do not receive physical certificates representing their ownership of the bonds, but should receive account statements of their holdings from their securities broker. Exceptions relate to bonds issued prior to 1987, which might not be fully registered and might require that coupons be clipped and mailed to the paying agent. Please note that although physical bond certificates were also issued to individual bondholders for college savings bonds, a broker can also hold these bonds. These zero coupon College Savings Bonds were issued in denominations of $1,000 and pay no interest until maturity.

There are different types of state guaranteed debt. The State guarantees debt issued by municipalities for school construction, certain sewer and water system improvements, and landfill closures. For a debt to be guaranteed under one of these categories the guarantee must be applied for by the municipality through the State. Additionally the State guarantees some debt for economic development purposes for programs that are administrated by the New Hampshire Business Finance Authority and the Pease Development Authority.

For information on the state's financial condition, please consult the Comprehensive Annual Financial Report.

Among other things the legislature has authorized the use of State general obligation bonds for numerous purposes including: constructing correctional facilities, renovating or constructing academic facilities for the University System of New Hampshire, state office buildings, rehabilitating rail and airport facilities, acquiring land, making grants to municipalities for the purposes of funding wastewater and drinking water facilities upgrades, and historic preservation projects.

Paper copies of Official Statements may be obtained from the State Treasury they are still available by calling 1-603-271-2621 or you may click here to find recent official statements and filings by the state.
In accordance with the requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission, the State has also agreed to provide certain disclosure information, including Official Statements, to Nationally Recognized Municipal Securities Information Repositories ("NRMSIR") recognized by the SEC. Below is a list of the NRMSIRs as of July 2003. Some of them have Internet sites where you can download a copy of an Official Statement. If you wish access to a State Official Statement or other disclosure document in a NRMSIR file, please choose a NRMSIR from the list below. Please note that each NRMSIR is responsible for its site and information and they may charge a fee.

 Bloomberg Municipal Repository
100 Business Park Drive
Skillman, New Jersey 08558
Phone: (609) 279-3225
Fax: (609) 279-5962
Email: munis@bloomberg.com

DPC Data Inc.
One Executive Drive
Fort Lee, NJ 07024
Phone: (201) 346-0701
Fax: (201) 947-0107
Email: nrmsir@dpcdata.com

FT Interactive Data
Attn: NRMSIR
100 William Street
New York, New York 10038
Phone: (212) 771-6999
Fax: (212) 771-7390 (Secondary Market Information)
(212) 771-7391 (Primary Market Information)
Email: nrmsir@ftid.com

Standard & Poor's J. J. Kenny Repository
55 Water Street
45th Floor
New York, NY 10041
Phone: (212) 438-4595
Fax: (212) 438-3975
Email: nrmsir_repository@sandp.com

At this time, the College Savings Bond Program has not been continued. However, the Treasury does offer a state sponsored program for families to save and invest for higher education expenses called the UNIQUE Plan. Under current law, earnings on the UNIQUE Plan and other Section 529 college savings plans are tax exempt at the federal level. Earnings on the UNIQUE Plan are exempt from the State's interest and dividends tax as long as they are used to pay for qualified higher education expenses. An informational brochure and enrollment application may be obtained by calling Fidelity Investments, the plan administrator, at 1-800-544-1722.

For State of New Hampshire General Obligation Bonds (including College Savings Bonds), please contact the Paying Agent and Registrar as follows:

• PHONE:
  1-800-934-6802
  
• REGISTERED MAIL (FULLY REGISTERED BONDS):
  U.S. Bank
  Corporate Trust Services
  P. O. Box 64111
  St. Paul, MN 55164-0111
  
• REGISTERED MAIL (BEARER BONDS) :
  U.S. Bank
  Corporate Trust Services
  P. O. Box 64452
  St. Paul, MN 55164-0111
  
• OVERNIGHT EXPRESS INSURED MAIL (BEARER OR FULLY REGISTERED BONDS) :
  U.S. Bank
  Corporate Trust Services
  60 Livingston Avenue
  1st Floor - Bond Drop Window
  St. Paul, MN 55107

Each credit rating agency looks at a variety of factors in determining the rating. They look at past and forecasted results of financial operations, the state's economy, demographics and the outstanding debt levels.

Bond ratings may also depend on the security features of particular bonds. Some bonds with the same underlying ratings might have different credit ratings assigned to them by the rating agencies due to credit enhancements, such as bond insurance or letters of credit; or due to escrows that have been set up to pay principal and interest on refunded issues. As of April 2006, the underlying (uninsured) credit ratings for State of New Hampshire General Obligation bonds are set forth below. The ratings are subject to change at any time and there can be no assurance that the ratings in effect as of April 2006 will not be lowered or withdrawn or suspended in the future.

• Moody's Investor Services
• Standard & Poor's Ratings Service
• Fitch

No, the New Hampshire Treasury also issues a very small amount of taxable debt on a very infrequent basis. However, for most individuals the interest income on State of New Hampshire tax-exempt bonds and notes are exempt from the New Hampshire interest and dividends tax and is also excludable from gross income for federal income tax purposes. However, the tax status of individuals varies and tax laws may change. The State does not offer tax advice, and potential investors should consult their tax advisors to determine the tax treatment of any investments they have made or are contemplating making.

Individuals should consult their tax advisors, or the Internal Revenue Service, or other taxation agencies as to tax treatment and reporting requirements. It is often required that tax exempt income be reported on tax forms for informational purposes, even if not taxed.

Below is a list of State Authorities that issue their own debt in the capital markets, along with their mailing addresses and telephone numbers. Please contact them directly.

New Hampshire Business Finance Authority
14 Dixon Avenue, Suite 101
Concord, NH 03301
Phone: (603) 271-2391
Fax: (603) 271-2396
http://www.nhbfa.com

New Hampshire Housing Finance Authority
32 Constitution Drive, Bedford, NH
Mailing address: P.O. Box 5087, Manchester, NH 03108
Phone: (603) 472-8623 or 1-800-640-7239 (NH only)
Fax: (603) 472-8501
TDD: (603) 472-2089
http://www.nhhfa.org/

New Hampshire Health and Education Facilities Authority
54 South State Street
P.O. Box 2110
Concord, NH 03302-2110
Tel: 603-224-0696
Fax: 603-224-3058
http://www.nhhefa.com

New Hampshire Municipal Bond Bank
25 Triangle Park Drive, Suite 102
Concord, NH 03301
(603)271-2595
(800) 393-6422 (Toll Free in NH)
(603)271-3937 (fax)
http://www.nhmbb.org

The New Hampshire State Treasury has no authority when it comes to United States Savings Bonds. Savings bond information can typically be obtained from a bank or from the United States Treasury, Bureau of Public Debt. The website for the Bureau of Public Debt has almost every piece of information that you might need. The web site is:
http://www.savingsbonds.gov/

Utilizing a "private label" website and underlying software, developed and maintained by a third-party vendor, the New Hampshire Treasury will conduct periodic online internet auctions when investing certain state funds in certificates of deposit. Using this secure technology Treasury will be able to reach out to all qualified New Hampshire banks for investment participation and generate more competitive investment returns for the State. https://www.bidnh.com/cd/

The online internet-based auction process will begin with Treasury pre-qualifying the banks that will be eligible to participate in the online auction. Criteria used by Treasury in the prequalification process will include New Hampshire’s statutory requirements, bank credit ratings and financial ratios. Treasury will also establish a minimum and maximum amount which can be invested in each eligible bank. https://www.bidnh.com/cd/guidelines/

On the scheduled auction date, eligible banks choosing to participate in the auction will log in to the secure website with their prearranged passwords and bid on the amount and terms of state funds being made available for investment. The bids will be in the form of the interest rates that the banks are willing to pay. The highest bidders will be awarded the investment. Results of the auction are then published and the underlying transaction documentation is provided to the winning bidders and to Treasury.

The BidNH process provides a transparent, efficient and equitable means for investing in New Hampshire state funds and provides broader access to State funds. The results of each auction are published on the BidNH website and be viewed utilizing the following link https://www.bidnh.com/cd/results. Furthermore, the BidNH is available to all eligible New Hampshire banks that elect to participate in these auctions.

The competition fostered by the BidNH auction will enhance our efforts to obtain the highest rates of return available on public money which directly benefits New Hampshire taxpayers. The financial institutions that offer the best rates will be awarded the funds.

The Treasury will have a more efficient and accurate process to invest State funds and will no longer need to rely on phone calls, faxes, mailings or paper storage.

In accordance with RSA 336:1 under NH Chapter Law 242, laws of 95, the annual simple rate of interest on judgments (and prejudgments) is to be determined by the State Treasurer.