Public Charter Schools Borrowing With Tax-Exempt Bonds, Second ...

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and recordkeeping procedures. A compliance monitor can typically be engaged to perform the rebate analyst’s role as well. (See Chapter 12, “Post-Issuance Compliance,” for more discussion of the responsibilities of the charter school after issuance of the bonds.) 54
chapter twelve Post-Issuance Compliance A Long Term Responsibility Public charter schools are responsible for monitoring post-issuance compliance with respect to a range of matters relating to property and programs financed with tax-exempt bonds. As further described herein, these responsibilities apply over the entire life of the obligations, including any refunding bonds. What Kinds of Responsibilities Do Issuers and Conduit Borrowers Have After Bonds Are Issued? In addition to the obvious, which is paying the debt service on the bonds, there are a variety of crucial post-issuance responsibilities that public charter schools must perform. Failure to perform these duties could lead to serious consequences. The adoption of written organizational procedures governing internal compliance with post-issuance obligations helps public charter schools ensure long-term success, including through normal staff turnover and attrition. Typical examples of postissuance responsibilities include the following. A. Tax Responsibilities In general, when bonds have been issued on a tax-exempt basis, the school will have covenanted in the bond documents (that is, promised to bondholders) that it will not do anything that will cause interest on the bonds to become taxable and that it will take any and all actions necessary to preserve and defend tax-exemption. While the tax requirements are many and complex, and vary from bond issue to bond issue, they generally include the following: Public Charter Schools Borrowing With Tax-Exempt Bonds, Second Edition 55
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Public Charter Schools Borrowing Wi
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Public Charter Schools Borrowing Wi
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chapter one Introduction The public
Page 9 and 10: chapter two Why Use Tax-Exempt Bond
Page 11 and 12: Tenure. Tax-exempt debt generally h
Page 13 and 14: Thus, although it is somewhat count
Page 15 and 16: of tax credits, as determined by Co
Page 17 and 18: chapter three Timing of Project Acq
Page 19 and 20: the school’s finances and operati
Page 21 and 22: chapter four Eligible Uses of Bond
Page 23 and 24: Properly drafted, it can be simple
Page 25: yield on the refunded bonds. Howeve
Page 28 and 29: it is advisable to consult bond cou
Page 31 and 32: chapter six Credit Considerations I
Page 33 and 34: competing public schools do not ser
Page 35 and 36: Each transaction is analyzed indivi
Page 37 and 38: chapter seven Investor Perspectives
Page 39 and 40: 5. Quality of Finance Team. By virt
Page 41 and 42: chapter eight Credit Enhancement Fo
Page 43 and 44: B. Other Guarantors and Credit Enha
Page 45 and 46: chapter nine Market Disclosure The
Page 47 and 48: sessions. Parties also conduct a
Page 49 and 50: data is presented in the final offi
Page 51 and 52: chapter ten Transaction Structure a
Page 53 and 54: A separate public entity is require
Page 55 and 56: chapter eleven Steps to Issuing Bon
Page 57 and 58: of the Official Statement that sets
Page 59: a separate law firm to serve as Dis
Page 63 and 64: agreements for comparable special l
Page 65 and 66: B. Disclosure Responsibilities Fail
Page 67 and 68: Contacts For further information ab
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