3.5. EDSR 02-13-2012 - Laserfiche WebLink

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Economic Development Authority City of Elk River, Minnesota Post-Issuance Debt Compliance Policy The Board of Commissioners (the "Board") of the Economic Development Authority for the City of Elk River, Minnesota (the "EDA") has chosen, by policy, to take steps to help ensure that all obligations will be in compliance with all applicable state and federal regulations. This policy may be amended, as necessary, in the future. Background The Internal Revenue Service (IRS) is responsible for enforcing compliance with the Internal Revenue Code (the "Code") and related regulations governing certain obligations (for example: tax-exempt obligations, Build America Bonds, Recovery Zone Development Bonds and various "Tax Credit" Bonds). The IRS expects issuers and beneficiaries of these obligations to adopt and implement apost-issuance debt compliance policy and procedures to safeguard against post-issuance violations. Post-Issuance Debt Compliance Policy Objective The EDA desires to monitor these obligations to ensure compliance with the IRS Code and related regulations governing such obligations. To help ensure compliance, the EDA has developed the following policy (the "Post-Issuance Debt Compliance Policy"). The Post- Issuance Debt Compliance Policy shall apply to the obligations mentioned above, including bonds, notes, loans, lease purchase contracts, lines of credit, commercial paper or any other. form of debt that is subject to compliance. Post-Issuance Debt Compliance Policy The Finance Director of the City is designated as the EDA's agent who is responsible for post-issuance compliance of these obligations. The Finance Director shall assemble all relevant documentation, records and activities required to ensure post-issuance debt compliance as further detailed in corresponding procedures (the "Post-Issuance Debt Compliance Procedures"). At a minimum, the Post- Issuance Debt Compliance Procedures for each qualifying obligation will address the following: 1. General post-issuance compliance; 2. Proper and timely use of bond proceeds and bond-financed property; 3. Arbitrage yield restriction and rebate; 4. Timely filings and other general requirements; 5. Additional undertakings or activities that support points 1 through 4 above; 6. Other requirements that become necessary in the future. The Finance Director shall apply the Post-Issuance Debt Compliance Procedures to each qualifying obligation and maintain a record of the results. Further, the Finance Director will ensure that the Post-Issuance Debt Compliance Policy and Procedures are updated on a regular and as needed basis.