All municipal governments, school divisions and health districts can borrow from MFC.
Benefits of borrowing from MFC
MFC allows local authorities to minimize interest costs by offering extremely competitive interest rates and the ability to repay debt prior to maturity. In addition, MFC offers very flexible borrowing terms that can be customized to meet the needs of the project being financed.
Loans from MFC can also be repaid prior to maturity, please refer our Prepayment Policy for details.
Process of borrowing from MFC
Before borrowing from MFC, local authorities require the approval of the Local Government Committee of the Saskatchewan Municipal Board.
After approval from the Local Government Committee of the Saskatchewan Municipal Board has been received, the following steps occur:
- The local authority should contact MFC and request an “Application to Sell Debentures”.
- MFC reviews the completed application, and notifies the local authority of MFC’s willingness to purchase its debentures, and the interest rate that MFC will charge. The local authority has a two week period to withdraw from the transaction.
- The local authority works with the Saskatchewan Municipal Board to print a debenture.
- The debenture is forwarded to MFC, and the local authority receives the proceeds of the loan.
MFC interest rate
MFC’s interest rates depend on the term of the debenture and current interest rate levels. The interest rate is the sum of:
- The Province of Saskatchewan’s cost of borrowing; plus
- A small amount to cover MFC’s administrative costs.