8717-14 Adopting post-issuance compliance procedures

Home Browse Search

A Reimbursement Allocation satisfies clause (b) if the Reimbursement Allocation was made from Proceeds of a series of obligations issued after March 2, 1992 and before July 1, 1993, and if it satisfies either subelause (i) or (ii). Subelause (i) is satisfied if: The Capital Expenditure reimbursed was paid after September 8, 1989 and before March 2, 1992; There is objective evidence that, at the time such Capital Expenditure was paid by the City (except Preliminary Expenditures), the City expected to reimburse such Capital Expenditure with Proceeds of a borrowing (whether taxable or tax - exempt); The expectation stated in subelause (2) was reasonable by being consistent with the budgetary and financial circumstances of the City i.e., no finds from sources other than the Issue were, or were reasonably expected to be, reserved, allocated on a long -term basis, or otherwise set aside by the City or any member of the same Controlled Group as the City pursuant to their budget or financial policies with respect to such Capital Expenditure); The Reimbursement Allocation occurred within 1 year after the later of the date on which such Capital Expenditure was paid or the date on which the property resulting from such Capital Expenditure was placed in service; and The reimbursed amounts were not used within one year after the date of the Reimbursement Allocation to (A) refund obligations issued by any Govermnental Unit, (B) create or increase the balance in a sinking fund with respect to any obligation of the City or to replace funds that have been, are being, or will be used for sinking find purposes, (C) create or increase the balance in a reserve or replacement find with respect to any obligation of the City, or to replace funds that have been, are being, or will be so used for reserve or replacement find purposes, or (D) reimburse any person for any expenditure or payment that was originally paid with proceeds of any obligation of the City (other than an internal borrowing from one of its own funds). Subelause (ii) is satisfied if Such Capital Expenditure was paid after March 1, 1992; On or before the date such Capital Expenditure was paid by the City (except Preliminary Expenditures), the City declared its reasonable intention to reimburse such Capital Expenditure with proceeds of a borrowing (whether taxable or tax - exempt) in a declaration of intent meeting the requirements of former Regulations §1.103 -18(f) or Regulations § 1.150- 2(f)(2); and The requirements set forth in subelauses (i)(3), (4) and (5) of this clause (b) are met. A -6