Agenda - Council - 07/12/2022 - Laserfiche WebLink

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rating will continue for any given period of time or will not be revised or withdrawn entirely by the Rating Agency if, in its judgment, circumstances so warrant. Any such downward revision in or withdrawal of such rating may have an adverse effect on the market price of the Series 2022 Bonds. See "BOND RATING"in this Official Statement. No Credit Enhancement Facility There is no letter of credit,bond insurance policy, or other credit enhancement facility securing the Series 2022 Bonds,nor is there any provision for a credit enhancement facility to be provided to secure any of the Series 2022 Bonds. Failure to Provide Ongoing Disclosure The Company and the Charter School will enter into the Continuing Disclosure Agreement pursuant to Rule 15c2-12, promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended ("Rule 15c2-12"). Failure by the Charter School or the Company to comply with the Continuing Disclosure Agreement and Rule 15c2-12 may adversely affect the liquidity of the Series 2022 Bonds and their market price in the secondary market. See "CONTINUING DISCLOSURE" in this Official Statement. Private School Vouchers Various proposals offering private school vouchers to families to assist with the cost of private schools have been considered across the country and in the State, and enacted in several locations.No such voucher program is currently in place in the State.However, if similar private school voucher programs are enacted in the future, private schools may become more desirable, due to the availability of financial assistance.If private school vouchers are provided for in the State,this may lead to the organization of more private schools and increased competition for the Charter School. See"Competition for Students" above. MDE Rulemaking MDE has the ability to promulgate administrative rules that relate to the operation of public schools (including charter schools such as the Charter School). The rulemaking authority of MDE is broad and could affect the operations of public schools, such as the Charter School,in the future. Any future increase in the scope or amount of rules promulgated by MDE in the future that affect the operations of the Charter School could have the result of increasing reporting requirements, increasing operational costs, increasing legal and professional costs, or affecting the operations of the Charter School in a way that cannot be determined at this time. Education Reform and Desegregation Litigation The operations of the Charter School could be adversely affected in the future by judicial decisions relating to education reform litigation and/or litigation relating to segregation in public schools in Minnesota. Cases could be filed in Minnesota and federal court in the future that could alter the operations of public schools in Minnesota (including the Charter School) in the future. An example of this type of possible litigation is the Cruz-Guzman v. State of Minnesota desegregation litigation filed in Hennepin County in late 2015. The three parties in the Cruz-Guzman suit are (1) the Plaintiffs, consisting of Cruz- Guzman and other parents of children attending Minneapolis and St. Paul public schools; (2) the Intervenors, consisting of three Minnesota charter schools and the Minnesota Association of Charter Schools; and (3) the State Defendants, consisting of the State of Minnesota, the Governor, and other officials, represented by the Minnesota Attorney General's Office. The Plaintiffs accused the State and lawmakers and other officials of enabling school segregation in the seven-county metro area that denied 34