§ 35-907 — Allocations after 5:00 p.m. December 16; reallocation of carryforwards

Arizona § 35-907

• Jurisdiction: Arizona
• Title 35: Arizona Revised Statutes
• Ch. 7: ALLOCATION OF PRIVATE ACTIVITY BONDING AUTHORITY
• Art. 1: General Provisions

Text

A. Any portions of the state ceiling for which bonds have not been issued by 5:00 p.m. December 16, other than confirmations extended pursuant to section 35-910, shall be pooled and are subject to allocation by the director to projects eligible for a carryforward allocation under the code.

B. Obtaining and issuing a confirmation after 5:00 p.m. December 16 shall occur as provided in section 35-904, subject to the following restrictions and changes:

1. Before 5:00 p.m. on December 15, a notice of intent shall be filed with and received by the authority by any issuer, bond counsel or other interested person. The notice of intent shall be dated and numbered and confirmations shall be issued by the director to the issuers on December 17. Any portions of the state ceiling for which bonds have not been issued or carried forward pursuant to this section or for which a qualified mortgage credit certificate program has not been established by 5:00 p.m. December 26 shall be allocated by the director and confirmations shall be provided to such issuers before January 1. Issuers shall not file elections of carryforward purpose with the federal government under section 146 of the code until a confirmation has been delivered by the authority under this section for the bonds pertaining to a project. The failure to file a notice of intent results in the exclusion of the project from allocations to issuers of any portion of the current calendar year state ceiling.

2. A security deposit equal to one percent of the principal amount stated in the notice of intent shall be received by the authority within five days after notification by the director that the project is eligible for a carryforward allocation. A security deposit is not required if the direct beneficiary of the bonds proceeds is this state or a county, city, town or nonprofit entity, the issuer is a student loan corporation, the project includes urban development action grant or housing development grant financing, is a qualified mortgage revenue bond project or is a qualified mortgage credit certificate program or the confirmation is issued by the director on or after December 26. The security deposit is forfeited to the authority if bonds are not issued within three years after the receipt of the deposit. For bonds that are issued from and after December 31, 2015, any security deposit made in relation to the project for which the bonds are issued shall be refunded if the bonds are issued within three years after the receipt of the deposit that is required under this paragraph, whether or not carryforward allocation is used.

C. Notwithstanding subsection B of this section and section 35-904, on written notice to the director, an issuer may reallocate all or a portion of any carryforward confirmation within the same carryforward purpose. A reallocation made pursuant to this subsection must be consistent with this section and with applicable federal law. A reallocation made pursuant to this subsection does not increase the aggregate amount of the original carryforward confirmation to which the reallocation relates or extends the term of the original carryforward confirmation during which the bonds must be issued. Reallocation of carryforward confirmation by an issuer will not result in a refund of any security deposit previously received by the authority on account of the original carryforward confirmation. The certificate of closing shall indicate to the authority if the carryforward confirmation was reallocated.