OAR 123-052-1600
Additional Requirements for Aggie Bonds
(1)
The expenditures financed under the Program cannot exceed the Federal Maximum, reduced by the total amount of Tax-exempt financing under Section 147(c)(2) of the Code that the Borrower, the Borrower’s spouse or minor children have received.(2)
The Department must obtain an allocation of private activity bond volume cap for each Aggie Bond from the Department’s legislative allocation or the private activity bond committee. If an adequate allocation is not available for any reason, the Aggie Bond will not be issued until such allocation is made to the Program.(3)
The Department must hold a “TEFRA hearing” and the State Treasurer must approve the issuance of each Aggie Bond.(4)
The Lender Documents must not secure the loan with any stock, other equity securities, any debt securities or any other “investment property” (within the meaning of Treasury Regulation section 1.148 1(b), or require that the Borrower maintain continuing balances of specified amounts in accounts in financial institutions.(5)
To obtain the approving opinion of the Program’s Bond Counsel for a bond purchased by a Standard Lender:(a)
The Borrower must complete a tax and arbitrage certificate, in form and substance satisfactory to the Department and the Program’s bond counsel, certifying the accuracy of facts that are necessary for Program Bond Counsel to issue its approving opinion and stating that the Borrower shall be solely responsible for compliance with Federal arbitrage restrictions.(b)
The lender must represent that it complies with sections (2) and (3) of OAR 123-052-1500 (Requirements for Standard Lenders).(c)
The State, the Borrower and the lender must execute any other documents required by the Program’s Bond Counsel in order to deliver its approving tax and legal opinions.(6)
At closing, the Borrower shall execute a post-issuance tax compliance agreement satisfactory to the Program’s Bond Counsel.(7)
The Borrower and lender shall be responsible for reviewing disbursement requests to confirm eligible uses of bond proceeds.
Source:
Rule 123-052-1600 — Additional Requirements for Aggie Bonds, https://secure.sos.state.or.us/oard/view.action?ruleNumber=123-052-1600.