Ohio Admin. Code 3358:14-9-15
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.
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.
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.
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.
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.
The CFO shall ensure the timely completion of arbitrage rebate calculations and filings.
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.
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.
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.
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).
With respect to bonds issued by the college on behalf of any college-supported entity, the CFO shall coordinate with the respective fiscal officer of such entity to ensure compliance with all aspects of this policy.
Within six months of becoming the CFO, and on an as-needed basis thereafter, the CFO and the CFO's designees, if any, shall undergo training regarding basic federal tax concepts relating to bonds and records required to be maintained under this policy.
On an annual basis, or sooner if deemed necessary by the CFO, the CFO shall review this policy and assess the college's compliance with this policy. The CFO shall make changes to this policy as appropriate to ensure compliance with any covenants in the bond documents or the requirements of federal tax and securities laws and any other applicable law.
This policy is intended for the internal use of the college only and is not intended to establish any duties in favor of or rights of any person other than the college.
The officers and employees charged by this policy with performing or refraining from any action may depart from this policy when they in good faith determine that such departure is in the best interests of the college and consistent with the duties of the issuer under applicable laws. If the CFO is charged by this policy with taking or refraining from such action, any such departure shall require review by bond counsel.
Ohio Admin. Code 3358:14-9-15
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358