BAN PURCHASE PROGRAM

NEW JERSEY INFRASTRUCTURE BANK'S
BAN PURCHASE PROGRAM

The objective of the I-Bank's BAN Purchase Program ("BAN-PP") is to assist counties and municipalities by providing a temporary, short-term source of liquidity for the renewal or "roll" of Bond Anticipation Notes ("BANs") for which there is no market during the present COVID-19 related liquidity crisis, as demonstrated by a failed sale.

QUALIFICATIONS:

Investment by the I-Bank in BANs through the BAN-PP is limited to those BANs issued by a county or a municipality (each, an "Issuer") that has a currently outstanding loan with the I-Bank Alphabetical list of loans and the BANs) (i) are a renewal or "roll" of prior BANs and (ii) additionally satisfy each of the following requirements:

• Were the subject of a prior "Failed Sale." ("Failed Sale" is defined in the Addendum below.);
• Have a maturity date of no more than 90 days;
• Satisfy I-Bank's credit requirement for investment ("Credit Requirement" is defined in the Addendum below);
• Satisfy the I-Bank's BAN-PP purchase cap of not to exceed the greater of $5,000,000 or 5% of the investment portfolio for any single issuer, ("Issuer Limit" is defined in the Addendum below);
• Comply with the Sector Limits of the I-Bank's BAN Investment Policy ("Sector Limit" is defined in the Addendum below).

ADDENDUM REGARDING CERTAIN DEFINITIONS

1. Failed Sale: The Municipality or County (each, an "LGU") must demonstrate, to the satisfaction of the I-Bank, with respect to its BAN that is being evaluated for investment by the I-Bank, the occurrence of one or more of the following circumstances: (i) the LGU previously undertook a competitive sale of such BANs and either (A) no qualifying bids were submitted or (B) each qualifying bid proposed an interest rate that exceeded 250 basis points greater in spread than the most recent similar maturity BAN sale(s) in the State, as determined by the I-Bank in its sole discretion; or (ii) the LGU previously undertook a private sale of its BANs and serially engaged in discussions with no less than three different potential purchasers of its BANs (in each case, either (A) a prior purchaser of one or more BANs previously issued by such LGU or (B) an institution that is a regular purchaser within the municipal BAN private purchase market within the State), and (1) each of such institutions declined to purchase by private sale the Municipality's BANs, or (2) those institutions that offered to purchase by private sale the Municipality's BANs proposed an interest rate that exceeded 250 basis points greater in spread than the most recent similar maturity BAN sale(s) in the State, as determined by the I-Bank in its sole discretion.
2. Credit Requirement: (i) The LGU must have at least one long-term debt rating from any one of the three nationally recognized rating agencies (Fitch Ratings, Moody's Investors Service or S&P Global Ratings), and (ii) no such rating by any one such rating agency is lower than A- or A3. The BAN that is the subject of investment by the I-Bank does not require a rating.
3. Issuer Limit: No single issuer of BANs shall exceed the greater of $5,000,000 or 5.00% of the I-Bank's investment portfolio, as calculated by the I-Bank. For purposes of calculating this percentage, all funds related to each Financing Program of the I-Bank shall be treated as a separate portfolio investment fund, pursuant to the Investment Policy of the State of New Jersey.
4. Sector Limit: No more than 40% of the I-Bank's investment portfolio may be invested in BANs, as calculated by the I-Bank. For purposes of calculating this percentage, all funds related to each Financing Program of the I-Bank shall be treated as a separate portfolio investment fund, pursuant to the Investment Policy of the State of New Jersey.