The Federal Home Loan Banks want municipal issuers to take advantage of a provision in a new housing law that allows the banks to guarantee tax-exempt debt beyond housing deals, but some muni market participants still have questions about how this new program will work.

"What types of loans will they guarantee?" asked one bond attorney who has received numerous inquiries from issuers about the letters of credit. "How does the process work? What will be required to establish it is a safe and sound loan? And if someone wants to investigate a guaranty, who do they contact?"

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