N.M. Admin. Code § 2.61.5.8

Current through Register Vol. 36, No. 1, January 14, 2025

Section 2.61.5.8 - FINANCING PLAN FOR ANTICIPATION NOTES

A. In order to obtain approval of the issuance of anticipation notes, the board will require the state treasurer to prepare a financing plan for presentation to the board at a meeting of the board prior to the sale of the anticipation notes. The financing plan for anticipation notes shall address the following:

(1) Anticipation notes

(a) Debt structure and terms

(i) Maturity date of proposed issue.

(ii) Estimated interest rate on proposed bonds including true-interest-cost and coupon.

(iii) Table showing, for the applicable fiscal year, total future debt payments by;

(1) new issue,

(2) outstanding issues, and

(3) total debt payments (new and outstanding issues).

(iv) Estimated terms and conditions of bonds including covenant and call provisions, if applicable.

(v) Bond insurance or other credit enhancement costs and benefits, if applicable.

(vi) Maximum principal amount and the maximum interest rate allowed for bond sale.

(vii) Type of investments of proceeds, if applicable, the procedure to be used in selecting and purchasing the investments and representation that investment contracts will be competitively bid with documentation of the bidding process with at least three bona fide independent bidders.

(b) Sales management

(i) Representation and compensation of financial advisor, if any, and method of selection.

(ii) Method of sale, including justification for a negotiated sale, if any, and if negotiated, method of selection of underwriter.

(iii) Representation and compensation of bond counsel, special tax counsel, if any, and disclosure counsel, if any, and indication of method of selection.

(iv) Breakout of costs of issuance. For negotiated sales, cost of issuance breakout should include underwriters' discount as broken out by management fee, structuring fee, takedown and estimated expenses.

(v) Ratings history, target and strategy.

(vi) Anticipated timing of sale.

(c) Legal documents

(i) All resolutions previously adopted by the state treasurer relating to the financing.

(ii) Drafts of all resolutions to be adopted by the state treasurer relating to the financing.

(iii) Draft parameters resolution of the board approving the bond issue.

(iv) Copies (or drafts if not in final form) of all financing documents.

(d) Additional information

(i) A certification of the state treasurer certifying that the state treasurer has complied with all statutory requirements for the issuance of anticipation notes.

(ii) Any other information that the board, in its discretion, needs in order to fulfill its duty to review and approve proposed anticipation notes.

N.M. Admin. Code § 2.61.5.8

2.61.5.8 NMAC - N, 4-28-2000