New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 26 - GUIDELINES FOR NEW MEXICO BUSINESS INVESTMENTS IN BONDS › Section 2.60.26.9 - PROCEDURE

Current through Register Vol. 35, No. 13, July 16, 2024
A. A corporation
				which meets the qualifications set forth in Parts I and II [now 2.60.26.3 NMAC
				and 2.60.26.8 NMAC], above, may request that the state investment council make
				a purchase of bonds, notes, debentures or other evidence of indebtedness
				pursuant to Section 7-27-5.4(B) by submitting a proposal containing the
				following:
(1) A certified copy of the
				corporation's articles of incorporation.
(2) Evidence that the bond rating on the
				corporation's debt meets the minimum requirement set by statute or that an
				irrevocable, unconditonal letter of credit from a qualified financial
				institution or corporation can be provided.
(3) A comprehensive business plan detailing
				the corporation's proposed expansion venture or new outlet in New Mexico, under
				Section 7-27-5.4(B), and a projected time frame for completion of the project
				following approval by the state investment council and subsequent
				funding.
(4) A project cost
				analysis which contains a clear and concise statement by the corporation of the
				planned utilization of funds received pursuant to Section 7-27-5.4(B),
				including the total estimated cost of the project, the total amount of funding
				requested pursuant to Section 7-27-5.4(B), other sources of funding for the
				project, if any, and a quarterly cash flow schedule showing both the amount and
				purposes of the projected expenditures of funds received pursuant to Section
				7-27-5.4(B).
(5) Balance sheet and
				income statements before the project indicating the financial condition of the
				corporation and proforma statements of estimated income and cash flows of the
				corporation after the project.
(6)
				A description of the debt instrument, including a description of its terms,
				conditions, collateralization, a proposed repayment schedule and bond rating.
				Interest payments should be structured on a semi-annual basis. If a letter of
				credit is being used to qualify the investment a copy of the letter of credit
				which must be irrevocable, unconditional
,
for the life of the
				investment and payable to the state of New Mexico.
(7) Evidence that the debt instrument has
				been issued in accordance with all state and federal securities regulations,
				including registration with the securities and exchange commission.
(8) A statement from the corporation's
				independent auditor attesting to the following:
(a) the receipt, expenditure and utilization
				of state funds received by or for the corporation pursuant to Section
				7-27-5.4(B) shall be accounted for in such a manner that the receipt,
				expenditure, and utilization of such funds are clearly identified on the books
				of the corporation and distinguished from the receipt, expenditure, and
				utilization of other funds of the corporation, and
(b) any state funds which are received
				pursuant to Section 7-27-5.4(B) and held by or for the corporation prior to
				their expenditure shall be recorded on the books of the corporation separately
				from the other funds of the corporation and shall be earmarked for expenditures
				related to the project or purposes described in the proposal submitted to the
				state investment council.