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
How does the State Issue General Obligation Debt?
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.
In what form are New Hampshire Bonds issued?
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.
What is State Guaranteed Debt?
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
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.
How can I obtain a copy of an Official Statement or other
State disclosure information for a particular bond issue?
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
DPC Data Inc.
One Executive Drive
Fort Lee, NJ 07024
Phone: (201) 346-0701
Fax: (201) 947-0107
FT Interactive Data
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)
Standard & Poor's J. J. Kenny Repository
55 Water Street
New York, NY 10041
Phone: (212) 438-4595
Fax: (212) 438-3975
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
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
the plan administrator, at 1-800-544-1722.
I own State of New Hampshire Bonds and I have a question concerning General Obligation Bonds.
I own State of New Hampshire Bonds and I have a question
an interest or principal payment;
any notices that may have been issued to call the bonds
prior to maturity;
the registration of the bonds;
a bond that has matured;
a lost college savings bond certificate; or similar question
For State of New Hampshire General Obligation Bonds (including
College Savings Bonds), please contact the Paying Agent and
Registrar as follows:
Bank of New York Mellon Corporate Trust Services
How are New Hampshire General Obligation Bonds rated?
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.
These ratings are effective as of April 2006. They are subject to revision or change in the future.
The most recent credit ratings for a particular municipal bond
can be obtained from the following nationally recognized credit
rating agencies located in New York City.
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.
If State of New Hampshire bonds are tax-exempt, do I have
to report them on my tax forms?
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.
I am interested in obtaining information about bonds issued
by a State Authority or Agency, whom should I contact?
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 Health and Education Facilities Authority
54 South State Street
P.O. Box 2110
Concord, NH 03302-2110
Fax: 603-224-3058 http://www.nhhefa.com
New Hampshire Municipal Bond Bank
25 Triangle Park Drive, Suite 102
Concord, NH 03301
(800) 393-6422 (Toll Free in NH)
Can the New Hampshire State Treasury help me with my United
States Savings Bonds?
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:
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.
What is the BidNH online auction process for certificates of deposit?
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.
What are the Stakeholder Benefits of the BidNH Online Auction Process?
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.
Judgment Interest Rates
What is the interest rate on judgments?
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.
Pursuant to RSA
336:1, the rate of interest to be in effect for judgments
and prejudgments from January 1, 2013 through December 31, 2013
is 2.1% as outlined below:
9/24/12 US 26-week T-bills discount rate at auction
Previous Years Interest Rates
... plus 2 percentage points ...
Annual simple rate of interest rounded to the nearest tenth of a percentage point