New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1714 - LOCAL GOVERNMENT BOND RATING TEST

Current through Register Vol. 35, No. 13, July 16, 2024
A. A general purpose local government owner
				or operator or local government serving as a guarantor, or a local government
				owner or operator or guarantor which is not a general purpose local government
				but which has the legal authority to issue general obligation bonds, may
				satisfy the requirements of 20.5.117.1703 NMAC by having a currently
				outstanding issue or issues of general obligation bonds of $1,000.000 or more,
				excluding refunded obligations, with a Moody's rating of Aaa, Aa, A, or Baa, or
				a Standard & Poor's rating of AAA, AA, A, or BBB. Where a local government
				has multiple outstanding issues, or where a local government's bonds are rated
				by both Moody's and Standard and Poor's, the lowest rating shall be used to
				determine eligibility. Bonds that are backed by credit enhancement other than
				municipal bond insurance may not be considered in determining the amount of
				applicable bonds outstanding.
B. A
				local government owner or operator or local government serving as a guarantor
				that is not a general-purpose local government and also does not have the legal
				authority to issue general obligation bonds may satisfy the requirements of
				20.5.117.1703 NMAC by having both a currently outstanding issue or issues of
				revenue bonds of $1,000.000 or more, excluding refunded issues, and a Moody's
				rating of Aaa, Aa, A, or Baa, or a Standard & Poor's rating of AAA, AA, A,
				or BBB as the lowest rating for any rated revenue bond issued by the local
				government. Where bonds are rated by both Moody's and Standard and Poor's, the
				lower rating for each bond shall be used to determine eligibility. Bonds that
				are backed by credit enhancement may not be considered in determining the
				amount of applicable bonds outstanding.
C. The local government owner or operator or
				guarantor shall maintain a copy of its bond rating published within the last 12
				months by Moody's or Standard & Poor's.
D. To demonstrate that it meets the local
				government bond rating test, the chief financial officer of a local government
				owner or operator or guarantor described in Subsection A of this section shall
				sign a letter worded exactly as specified in Subsection A of 20.5.117.1764
				NMAC.
E. To demonstrate that it
				meets the local government bond rating test, the chief financial officer of a
				local government owner or operator or guarantor described in Subsection B of
				this section shall sign a letter worded exactly as specified in Subsection B of
				20.5.117.1764 NMAC.
F. The
				secretary may require reports of financial condition at any time from the local
				government owner or operator, or local government guarantor. If the secretary
				finds, on the basis of such reports or other information, that the local
				government owner or operator, or guarantor, no longer meets the local
				government bond rating test requirements of this section, the local government
				owner or operator shall obtain alternative coverage within 30 days after
				notification of such a finding.
G.
				If a local government owner or operator using the bond rating test to provide
				financial assurance finds that it no longer meets the bond rating test
				requirements, the local government owner or operator shall obtain alternative
				coverage within 150 days of the change in status.
H. If the local government owner or operator
				fails to obtain alternate assurance within 150 days of finding that it no
				longer meets the requirements of the bond rating test or within 30 days of
				notification by the director of the implementing agency that it no longer meets
				the requirements of the bond rating test, the owner or operator must notify the
				director of such failure within 10 days.