Frequently asked questions about the Bonds and Debt Management.
Can I buy New Hampshire bonds directly from the State of New Hampshire?
How do I buy tax free state municipal bonds?
How does the State Issue General Obligation Debt?
In what form are New Hampshire Bonds issued?
What is State Guaranteed Debt?
How much debt does the State have?
Does the State of New Hampshire still issue College Savings Bonds?
How are New Hampshire General Obligation Bonds rated?
Are all State of New Hampshire bonds tax-exempt?
If State of New Hampshire bonds are tax-exempt, do I have to report them on my tax forms?
Can the New Hampshire State Treasury help me with my United States Savings Bonds?
Can I buy New Hampshire bonds directly from the State of New Hampshire?
No. You must buy these bonds through a registered broker/dealer. The New Hampshire State Treasury cannot and does not endorse any particular broker/dealer. The Treasury facilitates and oversees the issuance of general obligation bonds, New Hampshire Turnpike System Revenue bonds and Federal Highway Grant Anticipation Bonds. The following organizations also issue tax-exempt bonds from time to time: the New Hampshire Municipal Bond Bank, the New Hampshire Housing Finance Authority, the New Hampshire Health and Education Facilities Authority and the Business Finance Authority.
How do I buy tax free state municipal bonds?
Bonds issued by the State of New Hampshire may be purchased in the primary or secondary market from brokers, and in some cases, underwriting banks and financial institutions.
Some investors also invest in tax-exempt mutual funds. Please call your investment advisor for further details. Commissions and fees vary by firms. Many investors shop around for the best combination of service and fees for their interests. The State Treasury does not provide investment advice. Also, please check with your tax advisor to determine the types of securities that meet your tax reporting needs.
How does the State Issue General Obligation Debt?
The State Treasury issues debt only to the amount authorized by the legislature and established in law. The full faith and credit of the State is pledged to the payment of the State's general obligation bonds and notes. The State issues debt either in the form of long-term bonds or short-term notes. Except in certain circumstances, the State issues general obligation bonds through a competitive sale. The Treasurer accepts bids from municipal underwriting firms to buy the bonds. The underwriting firms, following the purchase, sell the bonds to individual and institutional investors. The coupon is the interest rate paid by the State on a bond or note. The yield is the actual rate of return to the investor, reflecting any premium (purchasing a bond or note at more than the face value) or a discount (purchasing a bond or note at less than the face value), on the security. The State issues bond anticipation notes (short-term bonds) in anticipation of selling long term bonds or revenue anticipation notes to bridge a liquidity gap before anticipated revenue is received.
In what form are New Hampshire Bonds issued?
Since 1987, State of New Hampshire bonds generally have been issued in $5,000 denominations as fully registered book entry bonds, without physical certificates or coupons to clip. Bond transactions are recorded in electronic computerized book entry form by the Depository Trust Company ("DTC"), a New York limited purpose trust company and member of the Federal Reserve System. DTC is also a registered clearing agency under the Securities Exchange Act of 1934, and holds securities for participants. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. Purchase of the book entry bonds under the DTC system must be made by or through the Direct Participants who will receive a credit for the bonds on DTC's computerized records. The Direct or Indirect Participants are in turn responsible for keeping accurate records of their individual client's holdings and issuing written transaction confirmations and periodic account statements to the individual clients. Under this system individual bondholders do not receive physical certificates representing their ownership of the bonds, but should receive account statements of their holdings from their securities broker. Exceptions relate to bonds issued prior to 1987, which might not be fully registered and might require that coupons be clipped and mailed to the paying agent. Please note that although physical bond certificates were also issued to individual bondholders for college savings bonds, a broker can also hold these bonds. These zero coupon College Savings Bonds were issued in denominations of $1,000 and pay no interest until maturity.
What is State Guaranteed Debt?
There are different types of state guaranteed debt authorized in statute. The State guarantees debt issued by municipalities for school construction, certain sewer and water system improvements, and landfill closures. For a debt to be guaranteed under one of these categories, the guarantee must be applied for by the municipality through the State. Additionally the State guarantees some debt for economic development purposes for programs that are administrated by the New Hampshire Business Finance Authority and the Pease Development Authority.
How much debt does the State have?
For information on the state's financial condition, please consult the Annual Comprehensive Financial Report.
Among other purposes, the legislature has authorized the use of State general obligation bonds for numerous initiatives including: constructing correctional facilities, renovating or constructing academic facilities for the University System of New Hampshire, state office buildings, rehabilitating rail and airport facilities, acquiring land, making grants to municipalities for the purposes of funding wastewater and drinking water facilities upgrades, and historic preservation projects.
How can I obtain a copy of an Official Statement or other State disclosure information for a particular bond issue?
Paper copies of Official Statements may be obtained from the State Treasury if they are still available by calling (603) 271-2621 or you may access our Official Statements online.
Does the State of New Hampshire still issue College Savings Bonds?
At this time, the College Savings Bond Program has been discontinued. However, the Treasury does offer a state-sponsored program for families to save and invest for higher education expenses called the UNIQUE Plan. An informational brochure and enrollment application may be obtained by calling Fidelity Investments , the plan administrator, at 1-800-544-1722.
How are New Hampshire General Obligation Bonds rated?
Each credit rating agency looks at a variety of factors in determining the rating. They look at past and forecasted results of financial operations, the state's economy, demographics, and existing debt levels.
Bond ratings may also depend on the security features of particular bonds. Some bonds with the same underlying ratings might have different credit ratings assigned to them by the rating agencies due to credit enhancements, such as bond insurance or letters of credit; or due to escrows that have been set up to pay principal and interest on refunded issues. As of February 2016, the underlying (uninsured) credit ratings for State of New Hampshire General Obligation bonds are set forth below. The ratings are subject to change at any time.
| Moody's Investor Services | Standard & Poor's Ratings Service | Fitch |
|---|---|---|
| Aa1 | AA | AA+ |
These ratings are effective as of February 2016 and are subject to revision or change in the future.
The most recent credit ratings for a particular municipal bond can be obtained from the following nationally recognized credit rating agencies:
Are all State of New Hampshire bonds tax-exempt?
No, the New Hampshire Treasury also issues a very small amount of taxable debt on a very infrequent basis. However, for most individuals the interest income on State of New Hampshire tax-exempt bonds and notes are exempt from the New Hampshire interest and dividends tax and are also excludable from gross income for federal income tax purposes. However, the tax status of individuals varies and tax laws may change. The State does not offer tax advice, and investors should consult their tax advisors to determine the tax treatment of any investments they have made or are contemplating making.
If State of New Hampshire bonds are tax-exempt, do I have to report them on my tax forms?
Individuals should consult their tax advisors, or the Internal Revenue Service, or other taxation agencies as to tax treatment and reporting requirements.
Where can I go for information on my State of New Hampshire issued general obligation or revenue bond(s)?
For State of New Hampshire General Obligation Bonds (including College Savings Bonds), please contact the Paying Agent and Registrar as follows:
Bank of New York Mellon, Bondholder Customer Service
1-800-254-2826
email: bhr.clientservice@bnymellon.com
I am interested in obtaining information about bonds issued by a State Authority or Agency, whom should I contact?
Below is a list of State Authorities that issue their own debt in the municipal bond markets, along with their mailing addresses and telephone numbers. Please contact them directly.
New Hampshire Business Finance Authority
2 Pillsbury St, Suite 201
Concord, NH 03301
Phone: (603) 415-0190
Fax: (603) 415-0194
New Hampshire Housing Finance Authority
32 Constitution Drive, Bedford, NH
Mailing address: PO Box 5087, Manchester, NH 03108
Phone: (603) 472-8623 or (800) 640-7239 (NH only)
Fax: (603) 471-1043
TDD: (603) 472-2089
New Hampshire Health and Education Facilities Authority
54 South State Street
Mailing address: PO Box 2110
Concord, NH 03302-2110
Tel: (603) 224-0696
Fax: (603) 224-3058
New Hampshire Municipal Bond Bank
25 Triangle Park Drive, Suite 102
Concord, NH 03301
Phone:
(603)271-2595;
(800) 393-6422 (NH only)
Fax: (603)271-3937
Can the New Hampshire State Treasury help me with my United States Savings Bonds?
The New Hampshire State Treasury has no oversight with regard to United States Savings Bonds. Savings bond information can typically be obtained from a bank or from the United States Treasury, Bureau of Public Debt.
New Hampshire State Treasury
25 Capitol Street, Room 121 | Concord, NH 03301
(603) 271-2621 | fax: (603) 271-3922
Abandoned Property:
(800) 791-0920 (in New Hampshire) |
(603) 271-2619