Direct Purchase
Zions Bank owns a large portfolio of municipal bonds that are held for investment purposes. Many times, when there are no other buyers, Zions Bank steps forward by purchasing the bonds, thereby taking on the risk that others would not take. Zions Bank chooses to invest locally because Zions Bank knows its communities and its clients.

Direct purchase services are offered by Zions Bank. A representative sample of our projects over the past ten years follows below:
    • Housing Authority Bonds
    • Project
    • Zions Bank has been an active purchaser of Housing Authority Bonds as various entities are trying to deal with the affordable housing crisis in various parts of our state. The Bank worked with the Housing Authority of Salt Lake County, Housing Authority of Salt Lake City, as well as Moab City to help finance some of their affordable housing needs. Recently Zions Bank purchased a $2,000,000 Housing Assistance Management Enterprise “HAME” Multi-Family Housing Loan to help construct 108 affordable housing units in downtown Salt Lake City. The units will be built at 1749 S State Street where the current Capitol Motel sits.  The Motel will be torn down and the new units will take its place.  HAME is the nonprofit financing arm of the Housing Authority of Salt Lake City. This project is part of the Blue Ribbon Initiative and has tremendous support from local leaders for being built in order to “clean up” State Street and to provide more affordable housing in addition to some temporary transition housing.

    • Timber Lakes Special Service District
    • Project
    • Timber Lakes is a 1,450-lot cabin area east of Heber City, in Wasatch County, Utah. The bonds were initially issued as an 8.125% Special Assessment Bond used for improvements to the Timber Lakes culinary water system. Timber Lakes did an advanced refunding with Zions Bank ($4.352 million Water Revenue Refunding Bonds) using a Cinderella Bond structure that made the bonds taxable until the 2021 call date. Net water revenues in addition to the special assessment revenues were pledged to obtain a much lower interest rate as a water revenue bond. After the call date, the Cinderella Bonds convert to a tax-exempt fixed rate for the remaining life of the bonds. Final NPV savings realized by Timber Lakes SSD were $641,081 or $63,328 per year.

    • Morgan School District
    • Project
    • Morgan School District purchased six school buses through the Zions Bank equipment lease program. The equipment lease acts as a capital purchase mechanism allowing the District to own the buses after they have made their last payment. Spreading the costs of the buses over five years allowed the District to avoid a large upfront cost and help strengthen their cash balances.