The 'A+' rating assigned to the $49.755 million series 2002 bonds issued by the California Health Facilities Financing Authority for Northern California Retired Officers Community (NCRCO) is based on insurance from the State of California's Health Facilities Construction Loan Insurance Program (Cal-Mortgage). Under the Cal-Mortgage program, the bonds are guaranteed by the program's own Health Facilities Construction Loan Insurance Fund (HFCLIF), which is funded by upfront fees from new issuers, interest income on the fund, and from the one-time insurance premium charged to borrowers. However, the ultimate backing for the program is the full faith and credit of the state of California. In the event of a shortfall in the HFCLIF, the state can continue to make regularly scheduled debt
