3.5. EDSR 02-13-2012 - Laserfiche WebLink

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The Finance Director or any other individuals responsible for assisting the Finance Director in maintaining records needed to ensure post-issuance debt compliance, are authorized to expend funds as needed to attend training or secure use of other educational resources for ensuring compliance such as consulting, publications, and compliance assistance. Most of the provisions of this Post-Issuance Debt Compliance Policy are not applicable to governmental bonds the interest on which is includable in gross income for federal income tax purposes. On the other hand, if an issue of taxable governmental bonds is later refunded with the proceeds of an issue oftax-exempt governmental refunding bonds, then the uses of the proceeds of the taxable governmental bonds and the uses of the facilities financed with the proceeds of the taxable governmental bonds will be relevant to the tax- exempt status of the governmental refunding bonds. Therefore, if there is any reasonable possibility that an issue of taxable governmental bonds may be refunded, in whole or in part, with the proceeds of an issue oftax-exempt governmental bonds then, for purposes of this Post-Issuance Debt Compliance Policy, the Finance Director shall treat the issue of taxable governmental bonds as if such issue were an issue oftax-exempt governmental bonds and shall carry out and comply with the requirements of this Post-Issuance Debt Compliance Policy with respect to such taxable governmental bonds. The Finance Director shall seek the advice of bond counsel and its financial advisor as to whether there is any reasonable possibility of issuing tax-exempt governmental bonds to refund an issue of taxable governmental bonds. If the EDA issues bonds to finance a facility to be owned by the EDA but which may be used, in whole or in substantial part, by a nongovernmental organization that is exempt from federal income taxation under Section 501(a) of the Code. as a result of the application of Section 501(c)(3) of the Code (the "501(c)(3) Organization"), the EDA may elect to issue the bonds as "qualified 501(c)(3) bonds" the interest on which is exempt from federal income taxation under Sections 103 and 145 of the Code and applicable Treasury Regulations. Although such qualified 501(c)(3) bonds are not governmental bonds, at the election of the Finance Director, for purposes of this Post-Issuance Debt Compliance Policy, the Finance Director shall treat such issue of qualified 501(c)(3) bonds as if such issue were an issue oftax-exempt governmental bonds and shall carry out and comply with the requirements of this Post-Issuance Debt Compliance Policy with respect to such qualified 501(c)(3) bonds. Alternatively, in cases where compliance activities are reasonably within the control of the relevant 501(c)(3) Organization, the Finance Director may determine that all or some portion of compliance responsibilities described in this Post-Issuance Debt Compliance Policy shall be assigned to the relevant organization. The EDA may also issue tax-exempt bonds, the proceeds of which are loaned to certain private entities, including qualified 501(c)(3) organizations (referred to as "conduit bonds"). The EDA will require, as part of approval of any conduit bonds that the borrower assumes the duties of post-issuance debt compliance as described in this Post-Issuance Debt Compliance Policy, including provisions for reporting to the EDA.