Title
Consideration of and action on amending the Post-Issuance Compliance Policy and Procedures Manual.
Body
Summary: On November 5, 2013, the City adopted a Post-Issuance Compliance Policy and Procedures Manual to monitor the requirements of section 148 of the IRS Tax Code. These procedures should address matters related to post-issuance of tax-exempt debt including proper and timely use of debt proceeds, arbitrage, private business use, records retention, etc. The current policy does reference the continuing disclosure requirements of SEC Rule 15c2-12. The updated policy includes a list of the 16 material events that would require a timely material event notice to be filed with the Municipal Securities Rulemaking Board (the "MSRB") through the Electronic Municipal Market Access ("EMMA") system:
a. Principal and interest payment delinquencies
b. Non-payment related defaults, if material
c. Unscheduled draws on debt service reserves reflecting financial difficulties
d. Unscheduled draws on credit enhancements reflecting financial difficulties
e. Substitution of credit or liquidity providers, or their failure to perform
f. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form S701-TEB), or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security
g. Modifications to rights of holders of the security, if material
h. Bond calls, if material, and tender offers
i. Defeasances
j. Release, substitution, or sale of property securing repayment of the security, if material
k. Rating changes
l. Bankruptcy, insolvency, receivership, or similar event of the City or another obligated person
m. The consummation of a merger, consolidation, or acquisition involving the City or another obligated person or the sale of all or substantially all of its assets, other tha...
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