§ 5 — Statewide bond reserve

* § 5. Statewide bond reserve. One-third of the statewide ceiling is\nhereby set aside as a statewide bond reserve to be administered by the\ndirector.\n 1. Allocation of the statewide bond reserve among state agencies,\nlocal agencies and other issuers. The director shall transfer a portion\nof the statewide bond reserve to the commissioner for allocation to and\nuse by local agencies and other issuers in accordance with the terms of\nthis section. The remainder of the statewide bond reserve may be\nallocated by the director to state agencies in accordance with the terms\nof this section.\n 2. Allocation of statewide bond reserve to local agencies or other\nissuers.\n a. Local agencies or other issuers may at any time apply to the\ncommissioner for an allocation from the statewide bond reserve. Such\napplication shall demonstrate:\n (i) that the requested allocation is required under the code for the\ninterest earned on the bonds to be excluded from the gross income of\nbondholders for federal income tax purposes;\n (ii) that the local agency's remaining unused allocation provided\npursuant to section three of this act, and other issuer's remaining\nunused allocation, or any available carryforward will be insufficient\nfor the specific project or projects for which the reserve allocation is\nrequested; and\n (iii) that, except for those allocations made pursuant to section\neleven of this act to enable carryforward elections, the requested\nallocation is reasonably expected to be used during the calendar year.\n b. In reviewing and approving or disapproving applications, the\ncommissioner shall exercise discretion to ensure an equitable\ndistribution of allocations from the statewide bond reserve to local\nagencies and other issuers. Prior to making a determination on such\napplications, the commissioner shall notify and seek the recommendation\nof the commissioner of housing and community renewal in the case of an\napplication related to the issuance of multi-family housing or mortgage\nrevenue bonds, and in the case of other requests, such state officers,\ndepartments, divisions and agencies as the commissioner deems\nappropriate.\n c. Applications for allocations shall be made in such form and contain\nsuch information and reports as the commissioner shall require.\n 3. Allocation of statewide bond reserve to state agencies. The\ndirector may make an allocation from the statewide bond reserve to any\nstate agency. Before making any allocation of statewide bond reserve to\nstate agencies the director shall be satisfied:\n a. that the allocation is required under the code for the interest\nearned on the bonds to be excluded from the gross income of bondholders\nfor federal income tax purposes;\n b. that the state agency's remaining unused allocation provided\npursuant to section four of this act or any available carryforward will\nbe insufficient to accommodate the specific bond issue or issues for\nwhich the reserve allocation is requested; and\n c. that, except for those allocations made pursuant to section eleven\nof this act to enable carryforward elections, the requested allocation\nis reasonably expected to be used during the calendar year.\n* NB Repealed January 1, 1991\n