State Board of Administration Finance Corporation
Agency: The State Board of Administration Finance Corporation was created as a public benefits corporation created for the purpose of issuing debt to provide a source of funds to the Florida Hurricane Catastrophe Fund.
Purpose: The bonds are issued to provide funds to enable the Florida Hurricane Catastrophe Fund to reimburse participating insurers for a portion of hurricane losses in excess of the amount of each insurer’s loss retention. Bonds can be issued on a pre-event (taxable) or post-event (tax-exempt or taxable) basis.
Security:
Pledged Collateral: The bonds are secured primarily by reimbursement premiums, emergency assessments and investment earnings associated with the pledged collateral. Each series of pre-event bonds are also secured by their bond proceeds unless they are used to reimburse covered losses.
Debt Service Reserve Fund: The bonds are not secured by a reserve account.
Lien Status: The bonds have a first lien on the pledged collateral.
Additional Bonds Test: Additional parity bonds may be issued following an Incurrence Test, which, in part, requires that Assessments be ordered or levied in amounts estimated to be sufficient to pay debt service.