For more than 25 years, JEDA has promoted the business and economic welfare of South Carolina by assisting in the financing of public and private projects throughout the Palmetto State. JEDA serves as a statewide conduit issuer of special obligation revenue bonds and acts on behalf of the borrower to access financial markets and capital. Since its creation in 1983, JEDA has issued 400 bonds for over $7 billion in South Carolina's economy, resulting in the creation of more than 25,000 new jobs.
JEDA as a Conduit
- JEDA acts as a conduit by passing payments from the borrower to the bondholder to reduce the borrower’s financing costs.
- JEDA issues bonds on behalf of the borrower, allowing the borrower to benefit from a tax-exempt borrowing.
- JEDA funds are not at risk in connection with a financing and no funds of the State of South Carolina or any political subdivision thereof are at risk. Each JEDA bond contains language to that effect.
- Bonds issued by JEDA are payable solely by the underlying borrower from the funds and assets pledged for each individual bond issue. JEDA does not enhance the credit of the underlying borrower.
- JEDA and its bond counsel analyze each project’s eligibility for tax-exempt bond financing as specified by Federal law.
- JEDA does not assume the responsibility of determining the creditworthiness of a project or borrower, nor does it assume the resulting legal liability from making such a determination.
- The marketplace determines if the bonds are marketable, not JEDA.
Diagram of Lending Practices
