Arizona Laws 35-907. Allocations after 5:00 p.m. December 16; reallocation of carryforwards
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.
Terms Used In Arizona Laws 35-907
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Authority: means the Arizona finance authority established by Title 41, Chapter 53, Article 2. See Arizona Laws 35-901
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Bond: means any obligation that is subject to the provisions of section 146 of the code, excluding obligations that received a carry-forward allocation in a prior year. See Arizona Laws 35-901
- Certificate of closing: means the certificate of closing adopted for use by and to be filed with the authority declaring that bonds were issued or that a qualified mortgage credit certificate program has been established. See Arizona Laws 35-901
- Code: means the United States internal revenue code of 1986, as amended, and its applicable regulations. See Arizona Laws 35-901
- Confirmation: means the allocation confirmation that confirms an allocation to a project in the form adopted for use by the authority. See Arizona Laws 35-901
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Director: means the director of the authority. See Arizona Laws 35-901
- Issued: means , with respect to a bond or bonds, either of the following:
(a) The bond or bonds have been delivered and paid for in full. See Arizona Laws 35-901
- Issuer: means an entity or person issuing bonds. See Arizona Laws 35-901
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage credit certificate: means a certificate as described in section 25(c)(1) of the code. See Arizona Laws 35-901
- Notice of intent: means the notice of intent to be filed with the authority in the form adopted for use by the authority. See Arizona Laws 35-901
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Project: means a qualified mortgage credit certificate program or any construction, acquisition, planned expenditure or other activity, including all phases of a multiphased project that requests allocations in the same year and including costs of issuance, capitalized interest and discounts, financed with bonds and located in this state or directly benefiting residents of this state. See Arizona Laws 35-901
- Security deposit: means cash, a bank cashier's check, a surety bond, a letter of credit or any other form of security approved by the director in favor of the authority that is received by the authority from an issuer or user to secure or extend an allocation. See Arizona Laws 35-901
- State ceiling: means the dollar limit of the aggregate amount of private activity bonds that may be issued in this state pursuant to section 146 of the code for each calendar year, beginning in 1988. See Arizona Laws 35-901
- Year: means the calendar year. See Arizona Laws 35-901
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.