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Ill. The Reimbursement Rules - Governmental Bonds and 501(C~(3) Bonds <br /> <br /> A. Beginning with governmental and 501(e)(3) bonds issued after <br />September ?, 1991, if bond proceeds ate used to reimburse an expenditure made <br />before the bonds were issued, the bond proceeds will not be considered "spent" <br />unless four basic requirements are met: <br /> <br />1. Declaration of Intent. <br /> <br /> (a) General. The issuer, or a person or entity authorized to <br />act on its behalf, declares an intent to reimburse an expenditure with <br />bond proceeds. <br /> <br /> (b) Public Availability. The deelaration of intent to <br />reimburse must be publicly available in the official books, records or <br />proceedings of the issuer which must be continuously available for <br />inspection by the general public at the main administrative office or <br />customary location of public reeords, during normal business hours on <br />every business day of the issue being 10 days after official intent is <br />declared and ending on the date of issue of the bonds. <br /> <br /> (e) <br />must: <br /> <br />Content of Declaration of Intent. The official intent <br /> <br /> (i) state that the issuer intends to reimburse the <br />expenditure by incurring taxable or tax-exempt debt (not just <br />"debt"); <br /> <br /> (ii) contain a reasonably accurate general functional <br />description of the type and use of the property, so that a <br />person not familiar with the properpty would generally <br />understand the nature of the property. The description must <br />identify general character, type or purpose (e.g. law <br />enforcement equipment, hospital equipment, administration <br />building), state anticipated size, quantity or cost (e.g., 20 <br />police cars, law enforcement equipment costing $400,000, five <br />x-ray machines, $50,000 - square foot administration building); <br />and <br /> <br /> (iii) identify the reasonably expected source of funds <br />to be used to pay the expenditure and the reasonably expected <br />source of funds to pay debt service on the Bonds. <br /> <br /> 2. Official Intent Period. The official intent must be declared <br />not more than two years before the date of reimbursement. <br /> <br /> (a) .Emergency Expenditures - If the expenditure was not <br />reasonably foreseeable more than 15 days before its payment (e.g., a <br />fire destroys equipment), the official intent must be declared within <br />30 days after the expenditure is made. <br /> <br />2 <br /> <br /> <br />