§ 62-695.25 — Determination of maximum total volume of bonds that may

Oklahoma § 62-695.25

• Jurisdiction: Oklahoma
• Title 62: Public Finance

Text

be issued for year - Publication - Application by issuers for allocation of state ceilings - Contents. A. On January 1 of each calendar year or the first business day thereafter, the Deputy Treasurer for Debt Management shall determine the maximum total volume of private activity bonds that may be issued pursuant to federal law by the state during that year. B. On or before February 15 of each calendar year, the Deputy Treasurer for Debt Management shall cause to be published in The Oklahoma Register, or any successor publication, a notice specifying the amount of the state ceiling for the calendar year. C. Complete applications for state ceiling allocations from the pools set forth in Section 695.24 of this title shall be processed in chronological order of receipt on the basis of the information and provisions set forth in subsections D, E, F, G and H of this section. 1. The state ceiling reserved and placed pursuant to subsection A of Section 695.24 shall be allocated in the order in which applications are received, subject to the following: a. applications exceeding the available amount of the state ceiling reserved and placed in a pool pursuant to subsection A of Section 695.24, provided that the Deputy Treasurer for Debt Management does not exercise the discretion provided under subparagraph a of paragraph 4 of subsection A of Section 695.24 of this title, shall be held, but retain chronological priority, for the remaining amounts of the state ceiling that are reserved and placed in the Consolidated Pool, and b. applications from issuers or projects that previously received allocations but failed to issue within the 120-day timeframe as required by subsection H of this section, notwithstanding the no fee provision of subparagraph a of paragraph 4 of this subsection, shall be subject to the fee provision of Consolidated Pool applications as provided in subparagraph b of paragraph 4 of this subsection and eligible to apply for an allocation under subsection A of Section 695.24 with a new priority date. 2. The state ceiling reserved and placed pursuant to subsection B of Section 695.24 shall be allocated in the order in which applications are received, subject to the following: a. applications held pursuant to subparagraph a of paragraph 1 of this subsection or new applications, but not applications submitted pursuant to subparagraph b of paragraph 1 of this subsection, shall receive first priority based on the chronological issuance of confirmation, b. applications from issuers or projects that previously received allocations under subsection B of Section 695.24 but failed to issue within the 120-day timeframe required pursuant to subsection H shall be subject to the fee provision of carryforward applications as provided in subparagraph c of paragraph 4 of this subsection and eligible to apply for an allocation under subsection B of Section 695.24 with a new priority date, and c. applications from issuers or projects that previously received allocations under subsection A of Section 695.24, but failed to issue within the 120-day timeframe required pursuant to subsection H of this section shall not be eligible to receive a priority date for the Consolidated Pool prior to August 1; 3. The state ceiling reclaimed or reserved for qualified carryforward projects pursuant to subsection C of Section 695.24 shall be allocated in the order in which confirmations are issued, subject to the following: a. applications submitted under subsection B of Section 695.24 or new applications, but not applications submitted pursuant to subparagraph b of paragraph 1 of this subsection shall receive first priority based on the chronological issuance of confirmation, b. applications from issuers or projects that previously received allocations but failed to issue within the 120-day timeframe required pursuant to subsection H of this section, shall not be eligible to receive a priority date prior to December 20, and c. applications exceeding the amount of the state ceiling reclaimed or reserved for qualified carryforward projects pursuant to subsection C of Section 695.24 shall be permitted to reduce the requested amount, without losing priority, and receive eligible carryforward at the discretion of the Deputy Treasurer for Debt Management; 4. All applications shall be subject to the following fee structure, which shall be apportioned to the Bond Oversight Revolving Fund created pursuant to Section 695.8a of this title: a. no application fee shall be assessed to issuers or projects for an allocation of the state ceiling under subsection A of Section 695.24, b. applications for an allocation of the state ceiling under subsection B of Section 695.24 shall be subject to a fee of one-half (0.5) basis point (0.005 percent), provided that no application shall be subject to a fee if held pursuant to a request that exceeded the pool amount under subparagraph a of paragraph 1 of this subsection, and c. applications for an allocation of the state ceiling for carryforward under subsection C of Section 695.24 shall be subject to a fee of one (1) basis point (0.01 percent); 5. The Deputy Treasurer for Debt Management shall have the limited authority to defer, retain priority, or deny confirmation on applications for state ceiling allocation that appear to be incomplete or premature based upon information submitted or that fail to show demand for funds pursuant to subsections F and G of this section. In the event a confirmation or application is denied, the Deputy Treasurer for Debt Management, within five (5) business days following such denial, shall send written notice to the applicant together with a brief recital of the reasons for denial. D. An issuer that proposes to issue private activity bonds for a specific project or purpose shall make application for an allocation of a portion of the state ceiling for the particular project or purpose by submitting to the Deputy Treasurer for Debt Management an application for state ceiling allocation together with copies of the following: 1. A certified copy of the resolution or other action adopted by the issuer for the purpose of taking "official action" as required by the Treasury Regulations relating to Section 103 of the Internal Revenue Code, if the issuer of private activity bonds for which the allocation is requested requires "official action" under applicable Treasury Regulations and the Internal Revenue Code; and 2. A final resolution of the beneficiary of the issuer evidencing its approval of the issuance of the issuer's obligations, if the issuer is a municipal or county public trust, or a certificate signed by the Governor of the state evidencing his approval of the issuance of the issuer's obligations, to the extent required under the Internal Revenue Code, if the issuer is a public trust having the state as its beneficiary. E. The application for state ceiling allocation shall contain the following information: 1. The name and mailing address of the issuer, the beneficiary and jurisdiction thereof, the name of the presiding officer of the issuer and the respective pool from which an allocation is requested; 2. The name and mailing address or other definitive description of the location of the project or bonds and the purpose for which an allocation of the state ceiling is requested, the name and mailing address of both the initial owner or operator of the project, where applicable, and an appropriate person from whom information regarding the project or bonds can be obtained, and the name and address of the person to whom the confirmation should be sent; 3. The amount of the state ceiling which the issuer is requesting; 4. A statement of bond counsel for the issuer that the proposed issue requires, pursuant to Section 103, Section 146 or such other applicable sections of the Internal Revenue Code, an allocation of a portion of the state ceiling; and 5. Where applicable, the intention to exchange single-family mortgage bond authority for mortgage credit certificates. F. 1. Applications for single-family mortgage bonds or mortgage credit certificate programs shall also include the submission of information demonstrating a reasonable expectation to use an allocation of the state ceiling for its intended purpose. This information shall include historical usage of mortgage revenue bond proceeds or mortgage credit certificates in the geographic area subject to an application over the previous twenty-four-month period and the impact of known or possible competing programs that would act to reduce demand. This information may also include demand surveys. Provided, in cases where historical usage cannot be documented, demand surveys shall be included with an application. 2. Applications for qualified student loan bonds shall also include the submission of information showing a reasonable expectation to use the state ceiling for its intended purpose. This information shall include historical lending activity over the previous twenty-four-month period as well as a demonstration of need based upon such factors as increased enrollment costs, enrollment increases, or new federal regulations that act to increase demand by making changes to eligibility requirements to certain federally guaranteed or subsidized student loan programs. This information may also include demand surveys. Provided, in cases where historical usage cannot be documented, demand surveys shall be included with an application. 3. Applications shall also include evidence of a structure to deliver the financing derived from single-family mortgage bond proceeds or mortgage credit certificates or from qualified student loan bond proceeds to ultimate users, particularly the extent of lender participation in the case of mortgage revenue bonds or mortgage credit certificate programs. G. 1. Upon receipt of the completed application for state ceiling allocation, copies of the official action and final resolutions or certificates as required by subsection D of this section and the information required by subsections E and F of this section and assuming availability of the sum requested and compliance with the Oklahoma Private Activity Bond Allocation Act, the Deputy Treasurer for Debt Management shall send, within five (5) business days of the receipt thereof, a confirmation of the allocation of the state ceiling for the subject project or purpose to the person designated in the application for state ceiling allocation. Provided, the Deputy Treasurer for Debt Management may reject an application or deny a confirmation pursuant to the provisions of this subsection. 2. The Deputy Treasurer for Debt Management may reject any application which is incomplete or filed with insufficient information. The Deputy Treasurer for Debt Management may reject any application where, in the Deputy Treasurer for Debt Management judgment, a reasonable likelihood has not been shown that single- family mortgage and student loan bond proceeds or mortgage credit certificates will be used for their intended public purposes. In the event an application or confirmation is denied, within five (5) business days following such denial, the Deputy Treasurer for Debt Management shall send the applicant written notice of the denial of an application or confirmation together with the reason or reasons therefor. In the case of disapprovals of applications or confirmations, an applicant may appeal the disapproval by submitting a new application to the Council of Bond Oversight, along with an explanation addressing the reasons for disapproval cited in the Deputy Treasurer for Debt Management letter. The Council of Bond Oversight, through affirmative action of the Council, may accept an application rejected by the Deputy Treasurer for Debt Management, or order the Deputy Treasurer for Debt Management to issue a confirmation of allocation, subject to provisions of the Oklahoma Private Activity Bond Allocation Act. Applicants may submit only one new application based on an appeal of any specific application previously submitted. 3. Only complete applications, as determined by the Deputy Treasurer for Debt Management, shall be used to establish the chronological order of applications. In the case of a new application submitted based on an appeal, chronological order shall be established at the time the new application is submitted. H. An original confirmation shall cease to be effective to assure allocation of any portion of the state ceiling unless the bonds, notes, other evidences of indebtedness, or the appropriate election filed with the Internal Revenue Service exchanging mortgage bond authority for mortgage credit certificate authority have been issued or filed within one hundred twenty (120) days after the date of such confirmation. No extensions shall be granted. Such issuance shall be evidenced by the mailing, transmittal or delivery of a final certification to the Deputy Treasurer for Debt Management within the time specified by this subsection. Receipt by an issuer of a confirmation as contemplated by this section shall entitle the issuer to rely conclusively upon the accuracy of the Deputy Treasurer for Debt Management's mathematical calculation and the allocation for purposes of closing. I. The confirmation given in advance of bond issuance or mortgage credit certificate election will assure allocation for only the amount of such bonds or mortgage credit certificate authority as is therein set forth, unless a supplementary application for state ceiling allocation for an increase in amount is filed with and a supplementary confirmation is issued by the Deputy Treasurer for Debt Management for such requested allocation prior to such bond issuance or such election, pursuant to the Oklahoma Private Activity Bond Allocation Act. The supplementary confirmation shall be effective for the same period as the prior confirmation which it supplements. Provided, however, no supplementary confirmation shall be effective to preempt any intervening confirmation as to allocation of a portion of the state ceiling. J. Notwithstanding the provisions of this section, all confirmation dates for an issue of private activity bonds or mortgage credit certificate programs expire on December 1 of each calendar year. Final certification of issuance shall be delivered to the Deputy Treasurer for Debt Management by 9:00 a.m. on December 1 of each calendar year. K. On or after 9:00 a.m. on December 1 of each calendar year, issuing authorities may apply to the Deputy Treasurer for Debt Management to carry forward a portion of the state ceiling for such calendar year allocated to any qualified carryforward project, as said term is used in Section 103(n)(10) and 146(f) of the Internal Revenue Code and which shall be evidenced by the issuance of confirmations for all carryforward projects within the limitations of the state ceiling. Provided, issuers or projects with more than Twenty Million Dollars ($20,000,000.00) of carryforward outstanding as of the date of the application for carryforward shall only be eligible for carryforward allocations to the extent other issuers with less than Twenty Million Dollars ($20,000,000.00) of outstanding carryforward authority do not fully commit the state ceiling. Allocations on carryforward projects shall be processed on the basis of the chronological receipt of applications, subject to paragraph 3 of subsection C of this section. No portion of the state ceiling carried forward for any given year may be carried forward for a period in excess of three (3) calendar years following the calendar year in which the carryforward arose, except as otherwise permitted under federal law. L. The Deputy Treasurer for Debt Management shall maintain continuous and cumulative records which shall include a list and cumulative dollar total of the private activity bonds for which: 1. Private activity bonds have been issued or state ceiling exchanged for mortgage credit certificate authority and final certifications have been received by the Deputy Treasurer for Debt Management; 2. Confirmations of carryforward have been issued; and 3. Confirmations in effect and outstanding for which no private activity bonds or mortgage credit certificate elections have been issued or filed. The Deputy Treasurer for Debt Management shall keep continuous and cumulative records and totals for each of the categories specified in paragraphs 1, 2 and 3 of this subsection as well as the aggregate total of all categories. The Deputy Treasurer for Debt Management shall not give further confirmations at such time as the aggregate amount of bonds, other indebtedness, carryforward or mortgage credit certificate elections specified by paragraphs 1, 2 and 3 of this subsection equals the state ceiling authorized for the applicable year. The Deputy Treasurer for Debt Management shall not award a confirmation if such award would cause indebtedness, carryforward or elections as specified by paragraphs 1, 2 and 3 of this subsection to exceed the state ceiling. Confirmation records shall be compiled and furnished to any local issuer and state issuer upon request. Upon issuance of a confirmation, the amounts of the proposed bond issue, mortgage credit certificate election and carryforward confirmation shall be included in the continuing, mathematical calculation, until the same shall have been terminated in accordance with this section. M. The person signing any confirmation for any allocations granted pursuant to the Oklahoma Private Activity Bond Allocation Act shall certify under penalty of perjury that such allocation was not made in consideration of any bribe, gift, gratuity or direct or indirect contribution to any political campaign. N. A state or local issuer, who intentionally overissues mortgage credit certificates or bonds, shall be prohibited from making application for an allocation of the state ceiling for any purpose for a period of three (3) years following discovery of such over issuance.

Legislative History

Added by Laws 1990, c. 326, § 5, emerg. eff. May 30, 1990. Amended by Laws 1993, c. 233, § 7, eff. July 1, 1993; Laws 1998, c. 400, § 5, eff. Jan. 1, 1999; Laws 2000, c. 351, § 11, emerg. eff. June 6, 2000; Laws 2004, c. 380, § 3, eff. Jan. 1, 2005; Laws 2019, c. 53, § 10, eff. Nov. 1, 2019; Laws 2025, c. 176, § 4, eff. Nov. 1, 2025.