Bond Monitoring Systems

The Dormitory Authority is unique as an issuer because of the diversity of its programs, its wide range of public and private clients and the size and scope of its portfolio, which contains more than 305 credits and exceeds $31.2 billion.

Protecting Clients and Investors

The Authority has enhanced its portfolio monitoring program which has successfully safeguarded clients and investors throughout the DA's history. Not one Dormitory Authority-issued bond has ever defaulted.

The Authority's portfolio monitoring system begins with a thorough review during the bond issue approval process and continues throughout the life of a bond, including monitoring the financial condition of the client as well as the physical condition of the facilities financed with bond proceeds.

Portfolio Monitoring Throughout the Life of the Bonds

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For more information on Health Care Portfolio Management

Portfolio Management

Throughout the life of a bond issue, the Authority administers provisions of the bond documents and monitors the financial condition of the client, as well as inspecting the physical condition of the facilities financed with bond proceeds. These actions are taken to protect the interests of our bond holders:

• Investment and cash flow management
• Review of client annual and interim financial statements
• Performance ratio comparisons
• Reserve fund and covenant monitoring
• Payment performance review
• Insurance monitoring
• Construction monitoring
• Project condition surveys

Since its founding in 1944, the Dormitory Authority has never defaulted on a bond.
Dormitory Authority of the State of New York

Security Features of Programs*

Private Higher Education, Health Care Facilities, and Other Not-For-Profit Organizations

The Dormitory Authority issues bonds for a variety of not-for-profit clients. The standard security include the following:

• Revenue Pledge equal to one year's debt service
• Mortgage on property acceptable to the Authority
• Debt Service Reserve Fund
• Building and Equipment Reserve Fund
• Credit enhancement, unless underlying credit is rated A+ or Al or better:
• Municipal Bond Insurance
• FHA Mortgage Insurance
• SONYMA Mortgage Insurance
• Letter of Credit

Public Higher Education and Health Care Facilities

Dormitory Authority bonds issued for public clients contain security features that reflect a different kind of revenue stream:

• Annual appropriation of debt service payments by State Legislature
• Income Fund Pledge ­ Where project revenue streams are available
• State Appropriation Backup ­ Comptroller interception of other appropriated funds
• Debt Service Reserve Fund
• Building and Equipment Reserve Fund (SUNY Dormitories and CUNY)

*Please note: these are general guidelines. Specific features may vary, depending on the bond issue.