17.6 Tax Exempt Bond Compliance

Policy

To comply with all applicable laws, regulations and contracts applicable to any tax-exempt bonds that are now outstanding or shall be issued in the future.

• Use of project eligible Bond proceeds shall be disbursed only for:
  1. Project costs,
  2. Capitalized interest (i.e. initial obligations to bondholders), and
  3. Bond issuance costs.
• To be an eligible project:
  1. The property being financed must be owned or, under certain circumstances, leased by Rochester University and the intended use must be consistent with the College’s 501(c)(3) exempt purposes.
  2. The project’s address must be listed in the TEFRA notice and must have received environmental approval under all relevant State and Federal regulations.
  3. The project must meet any other eligibility requirements that are in place or may come to be in place.
• At the time that bonds are issued it must be intended and expected that the project will be completed within three years of issuance.
• Five percent or less of bond issue proceeds may be used for private business purposes, and such use may only occur if in accordance with tax certificate provisions and in compliance with applicable federal law. Costs of issuance are counted against the 5% limit.
• Change of a project’s use or a contemplated change of use must be discussed with Bond Counsel prior to the implementation of the proposed change in use to ensure compliance with applicable regulations.
• The College shall comply with the yield restriction requirements of section 148(a) and rebate requirements of section 148(f), subject to spending exceptions and will file appropriate returns with the IRS relating to arbitrage.
• The College has adopted a record retention policy relating to tax-exempt bonds, pursuant to which records relating to tax-exempt bonds shall be maintained for the entire term of the bond issue plus three years, or, in the case of an issue refunded by one or more subsequent issues, for the combined term of the issues plus three years.