N.J. Admin. Code § 19:31-1.6

Current through Register Vol. 56, No. 12, June 17, 2024

Section 19:31-1.6 - Bond counsel review and fees

(a) The Authority is represented in bond transactions by bond counsel, a private law firm with particular experience and expertise in this specialized area of law. The bond counsel firm:

1. Reviews Applications to determine eligibility under Federal and State law;

2. Assists the Authority in drafting the necessary resolutions to be adopted concerning projects;

3. Publishes notice of public hearing;

4. Drafts financing documents to be used in the transaction;

5. Prepares certain Federal forms for filing with the IRS relating to bond financing;

6. Delivers an opinion at the settlement of the transaction indicating, among other things:

i. The project qualifies for Authority assistance;

ii. The Authority has taken all necessary steps to accomplish the transaction; and

iii. The interest income to be earned on the Authority bonds issued for the project is exempt from most Federal and/or State income taxes.

(b) Bond counsel fees are paid by the applicant usually at the closing of the transaction, and may, subject to certain limitations, be included as a project cost to be financed out of the Authority bond issue.

(c) The borrower also is responsible for paying other professional fees associated with financing the project, including, but not limited to:

1. Printing fees;

2. Real estate commissions;

3. Consulting fees; and

4. Bond purchaser counsel fees.

(d) Applicants may be charged a fee by bond counsel even though the project does not close with Authority bonds.

N.J. Admin. Code § 19:31-1.6