Ohio Administrative Code › Title 3358:14 - Northwest State Community College › Chapter 3358:14-9 - Expenditures › Section 3358:14-9-15 - Post-issuance compliance

Current through all regulations passed and filed through July 1, 2024
Northwest state community college (the
				"college") uses bonds as one means of financing capital projects in support of
				its mission. This post-issuance compliance policy (the "policy") outlines the
				policies and procedures to promote compliance with federal income tax and
				securities laws, as well as the requirements set forth in the bond documents
				for each bond issue. This policy is to strictly follow the U.S. Constitution
				and laws and the Ohio Constitution and laws. For purposes of this policy, the
				term "bonds" means any obligation of the college incurred for the purpose of
				borrowing money, including, without limitation, bonds, notes and certificates
				of participation in capital leases.
(A)
								Monitoring of
			 post-issuance compliance
Monitoring of post-issuance compliance
				for bonds will be the responsibility of the chief financial officer (the
				"CFO"). The CFO may designate employees to carry out the CFO's duties under
				this policy on the CFO's behalf in the same manner and with the same effect as
				any similar designation for any other purpose permitted by law.
(B)
								Compliance with covenants in bond documents
The CFO shall ensure compliance with
				all financial and operational covenants made by the college in the bond
				documents, including but not limited to financial reporting, insurance
				requirements, the recording of mortgages, restrictions on incurring additional
				indebtedness, restrictions on the disposition of property, and restrictions on
				granting liens or encumbering property.
(C)
								Federal tax law
			 compliance
(1)
									Proper use of proceeds
The CFO shall ensure that bond proceeds
				are allocated to expenditures in a manner that is consistent with the purpose
				for which each bond issue is undertaken, as set forth in any tax compliance
				certificate or agreement related to each bond issue.
(2)
									Investment of
			 bond proceeds
The CFO shall ensure that bond proceeds
				are invested in investments that are permissible under the terms of the Ohio
				Revised Code, the bond documents, and any applicable federal tax
				laws.
(3)
									Arbitrage rebate calculations
The CFO shall ensure the timely
				completion of arbitrage rebate calculations and filings.
(4)
									Administration of direct pay bonds
The CFO shall ensure the proper
				administration of each issue of bonds qualifying for the payment by the federal
				government of a credit equal to a percentage of interest on such bonds,
				including the timely completion and filing of any forms required by the
				internal revenue service to maintain or establish the applicable status of the
				bonds for purposes of federal income taxation.
(5)
									Use of
			 bond-financed facilities
The CFO shall consult with bond counsel
				for the college before entering into any agreement or other arrangement for the
				sale, lease, or use of bond-financed property, including, but not limited to,
				service, vendor, and management contracts, research agreements, licenses to use
				bond-financed property, or naming rights agreements. The CFO or the designee of
				the CFO shall review such agreements for compliance with federal tax laws and
				complete a private business use contract review worksheet to document that such
				review has been completed.
(6)
									Post-issuance
			 transactions
The CFO shall consult with bond counsel
				for the college before making any modifications or amendments to the bond
				documents for a bond issue, including, but not limited to, entering or
				modifying investment agreements; making any change in security for the bonds;
				engaging in post-issuance credit enhancement transactions (e.g., bond
				insurance, letter of credit) or hedging transactions (e.g., interest rate swap,
				cap); terminating or appointing successor trustees; releasing any liens; or
				reissuing the bonds.
(7)
									Remedial
			 action
In the event that it is determined that
				any use of bond proceeds or bond-financed facilities is inconsistent with the
				character of the status for federal income tax purposes of the bonds, the CFO
				shall consult with the college's bond counsel for the purpose of determining
				the nature and extent of any remedial action necessary or proper for the
				college to take with respect to such bonds or bond-financed facilities
				according to treasury regulations section 1.141 -12 or other remedial actions
				authorized by the commissioner of internal revenue under 1.141
				-12(h).