Iowa Admin. Code r. 265-4.6

Current through Register Vol. 47, No. 6, September 18, 2024

Rule 265-4.6 - Procedures following bond issuance

No bond proceeds may be used by a nonqualified user nor for a nonqualified purpose. Following disbursement of the bond proceeds, the participating lender and project sponsor shall certify to the authority that the proceeds were used by a qualified project sponsor for a qualified purpose.

(1)Assumption of loans, substitution of collateral and transfer of property. Loans may not be assumed without the prior approval of the authority and then only if the purchaser of the property is an eligible project sponsor for IFA revenue bond financing. In any situation where collateral is substituted, or property transferred other than a sale of the entire operation financed by IFA revenue bonds, the benefits of the loan deriving from the tax-exempt rate of interest on the bonds must remain with the operation financed by the revenue bonds, and no transferee may thereby obtain the benefits of the IFA loan.

(2) Reserved.

Iowa Admin. Code r. 265-4.6