DALLAS - Lafayette Parish, La., is the first local government in the United States to benefit from the new recovery zone economic development bonds, with a negotiated sale of $3.64 million of the taxable debt authorized by the American Recovery and Reinvestment Act.

The Lafayette bonds, priced earlier this month, are the first tranche from the recently enacted $10 billion federally subsidized borrowing program. Eligible local governments in areas affected by the recession can issue the taxable securities and receive a 45% rebate on interest costs from the U.S. Treasury.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.