The long-term rating assigned to Louisiana Local Government Environmental Facilities and Community Development Authority's bonds, issued on behalf of Shreveport, is based on a bond insurance policy proved by MBIA and the short-term rating is based on a liquidity facility provided by The Chase Manhattan Bank. The liquidity facility, a standby bond purchase agreement (SBPA) that expires on March 15, 2001, provides principal and up to 35 days of interest coverage at a maximum rate of 15% in the event that tendered bonds cannot be remarketed. The bonds will initially bear interest at a weekly variable interest rate but, upon mandatory tender and if the SBPA is to be in effect, a required increase in liquidity coverage may be converted
