HomeMy WebLinkAboutMontana Board of InvestmentsMEMORANDUM
Montana Board of Investments
Department of Commerce
2401 Colonial Drive, 3~ Floor
Helena, MT 59601
(406) 444-0001
To:
INTERCAP Borrowers
From:
Carroll South, Executive Director
Date:
February 2, 2005
Subject: INTERCAP Loans
Yesterday, the state Senate killed Senate Bill 240, a bill the Governor introduced to
address Legislative Auditor concerns about certain INTERCAP loans to state agencies.
The bill simply reanthorized these loans as state debt and required a two thirds vote of
each house. The bill died on a 30 to 20 vote.
The Senate's action will have serious long-term impacts on the INTERCAP Program and
could jeopardize the remarketing of INTERCAP bonds in March. To reduce the risk to
the INTERCAP Program, effective today, we will approve no more 1NTERCAP loans
until such time as Senate Bill 240 is passed by both houses of the Legislature and sent to
the Governor. We will honor all current commitments but will accept no more loan
applications until further notice.