View frequently asked questions (FAQ) for Indiana Finance Authority.

General Questions

What are municipal bonds?
What does it mean when a bond or note is tax-exempt?
What does is mean when a bond or note is taxable?
What are the different types of municipal debt?
  • Tax-Backed Debt: These are obligations secured by some form of tax revenue. The broadest type of tax-backed debt obligation is the general obligation debt. Other types that fall into the category of tax-backed debt are appropriation-backed obligations, debt obligations supported by public credit enhancement programs, and short-term debt instruments. (Fabozzi, Frank J. (2009). Institutional Investment Management: Equity and Bond Portfolio Strategies and Applications. Hoboken: John Wiley & Sons, Inc.)
  • Revenue Bond
What is appropriation debt?

Appropriation Debt: Bond issues of some agencies or authorities carry a potential state liability for making up shortfalls in the issuing entity's obligation. (Fabozzi, Frank J. (2009). Institutional Investment Management: Equity and Bond Portfolio Strategies and Applications.Hoboken: John Wiley & Sons, Inc.)

What is the primary market for municipal bonds?

Primary Market

Retail Ordering Period

Pricing Date: This is the actual date on which the price is set for the security which is being offered.

What is the secondary market for municipal bonds?
What is a preliminary official statement?
What is an official statement?
What is a maturity date?
How to buy Indiana Bonds?
  • Step 1- Open a brokerage account: In order to purchase any bonds, you must have an account established with one of the brokerage firms participating in the bond sale. To view a list of participating firms, please see upcoming new issuances.
  • Step 2- Learn about the State of Indiana bonds: Bonds can only be offered through an Official Statement. Download and read the Preliminary Official Statement to learn about the bonds being offered, including their security, maturity dates, credit rating, the types of projects they finance and other information you may find important to help you make an informed investment decision. This website is not an offer to sell or a solicitation of offers to buy any bonds.
  • Step 3- Place your order: Contact the broker with whom you have an account, either online or by phone, to get more information about how to buy bonds during the retail order period.
What types of bonds does the IFA issue?

The IFA primarily issues Appropriation-Backed Debt. As required by the Indiana Constitution, (Article 10, Section 5), the State of Indiana does not issue General Obligation (GO) Debt. The IFA also issues conduit debt; a key point is that this debt is the responsibility of the conduit borrower. Investors in conduit debt should not look to the IFA or the State of Indiana as a guarantor of this debt.

Who provides ratings?

The IFA receives annual ratings from the municipal debt rating agencies of Standard & Poor's, Moody's, and Fitch Ratings.