Florida Administrative Code › 19 - STATE BOARD OF ADMINISTRATION › 19 - Departmental › Chapter 19-5 - RULES AND REGULATIONS GOVERNING THE PROCEDURES FOR ISSUANCE OF BONDS AT AN INTEREST RATE IN EXCESS OF LEGAL LIMITATION › Section 19-5.001 - Interest Rate Limitation on Sale of Bonds of Governmental Units

Current through Reg. 50, No. 138; July 16, 2024
(1) Bonds of any governmental unit may be
				sold at an interest rate in excess of the maximum set by law, only if
				application has been made to the State Board of Administration and authority is
				granted to the governmental unit by the Board pursuant to Section
				 215.84, F.S., in the case of tax
				exempt bonds, or Section
				 159.825, F.S., in the case of
				taxable bonds. Provided, however, in determining whether or not the
				governmental unit has complied with the interest rate limitation set forth in
				Section  215.84(3),
				F.S., in the issuance of their bonds, where the purchaser of any such bonds is
				the U.S. Department of Agriculture, Farmers Home Administration, such
				obligations shall be deemed sold when Farmers Home Administration gives a
				binding commitment to purchase the bonds even though such commitment is subject
				to conditions subsequent such as completion of the project being financed with
				bond proceeds and the computation of adding 300 basis points to The Bond Buyer
				"20 Bond Index" published immediately preceding the first day of the calendar
				month in which the bonds are sold shall be computed on the date of such
				commitment.
(2) The maximum
				interest rate limitation specified in Section
				 215.84, F.S., in the case of tax
				exempt bonds, or Section
				 159.825, F.S., in the case of
				taxable bonds, does not apply to bonds within the rating categories of A or
				better by Moody's Investors Services, Inc., Standard & Poor's Corporation,
				or Fitch Investors Service, Inc., or, in the case of short-term obligations or
				notes, within the rating categories of MIG2 or VMIG2 or better by Moody's
				Investors Services, Inc., SP-2 or better by Standard and Poor's Corporation, or
				F-2 or better by Fitch Investors Service, Inc.
(3) Any governmental unit requesting
				authority to sell its obligations at an interest rate in excess of the maximum
				set by law shall make application to the State Board of Administration
				requesting such authority. The application shall be in writing and signed by a
				responsible official of the governmental unit issuing the bonds or notes. The
				application shall specify the maximum average net interest cost rate at which
				the governmental unit is requesting authority to sell its obligations, and
				shall state the reasons requiring the sale of the bonds at an average net
				interest rate in excess of the maximum set by law. The following documents or
				information must be included with the application:
(a) The official statement or prospectus, if
				available, or similar information relating to the sale of the bonds;
(b) The resolution or ordinance authorizing
				the issuance of the bonds;
(c)
				Financial data relating to the anticipated revenue, debt service and
				coverage;
(d) The most recent
				financial statement of the governmental unit;
(e) A certified copy of Judgment of
				Validation if the bonds have been validated;
(f) Information relating to sale of the
				bonds, including whether they will be sold at public or private sale and the
				amount of the discount, if any; and
(g) Any other pertinent document or
				information specifically requested.