Disclosures, Pre- + Post-Issue

Question 1

What type of bonds are impacted by State reporting & financial disclosure requirements?

Answer 1

All GOB & revenue bonds that mature 1 year or more.
But not bond anticipation notes.

Question 2

What LGs are impacted by bond State reporting & financial disclosure requirements?

Answer 2

All.

Question 3

Who must LG give notice to & for what?

Answer 3

Division of Bond Finance with advance written notice of the impending sale of GOBs + revenues (maturing 1 yr or more)

Question 4

Besides the Division of Bond Finance, what other types of notice might be indicated?

Answer 4

Sunshine, public meetings notice.

Question 5

What are the bond info forms?

Answer 5

2003 /2004-A + 2004-B.

03 = gen info, file when you’re free
04 = ‘f’ees, strictly 120 days [4 mos.]

Question 6

What is disclosed in 2003?

Answer 6

General info, names & addresses of participants.

Question 7

What is deadline to file 2003?

Answer 7

As soon as possible after bonds issued.
———–
don’t get confused. material events are asap no later than 10 days

Question 8

What is disclosed in 2004?
———–
What doc might be included in the filing of 2004?

Answer 8

Fees paid by underwriter and LG, incl attorney + consultant.
———–
Official Statement, if one issued.

Question 9

What is deadline to file 2004?

Answer 9

‘20’ 04 = 1 ‘20’ days
———–
Within 120 days of issuance.

Question 10

What types of bonds sale need not be noticed to Div of Bond Finance?

Answer 10

• Bonds that mature less than 1 yr.
• Bond anticipation notes.

Question 11

What bonds are exempt from 2004?

Answer 11

w/o reporting, cd run a CON
———–
Certain conduit financings.
(industrial development bonds, health facilities revenue bonds, educational facilities revenue bonds).

Question 12

If fail to comply with post disclosures, what could result?

Answer 12

Get reported to Legis Audit Comm. Cd withhold State funds.

Question 13

When is Official Statement made?
By who?
Stating what?

Answer 13

• Pre-issuance,
• Div of Bond Finance.
• Detail of all bond terms. Rating, Tax exempt, redemption, interest, maturity schedule.

Question 14

What is a Truth-in-Bonding Statement?

Answer 14

Give 10 days notice of sale.
THEN,
Issued by Underwriter to LG.
Sets forth:
• All fees paid (finders fee, management fee).
• Source of repayment
• Basic terms

Question 15

How are LG bonds sold?

Answer 15

Competitive bid OR negotiated.

Question 16

If negotiated sale, what is pre-requisite?

Answer 16

LG must make findings that it’s in the best interest of the public.

Question 17

How much notice to public of bond sale?

Answer 17

10 days.

Question 18

Local governments must provide advance notice of sale to the Div of Bond Finance for:
(a) all debt obligations of a local government
(b) GOBs only
(c) GOB & revenue bonds, but only if the bonds mature in more than 1 year
(d) GOBs & revenue bonds, but not special assessment bonds

Answer 18

C.

Question 19

Form 2004, with respect to sale information must be filed:
(a) for all GOBs and revenue bonds maturing in more than 1 year, but not bond anticipation notes
(b) same as (a) but excluding conduit financings
(c) same as (a) but excluding conduit financings and competitively sold bonds
(d) same as (a) but excluding conduit financings and privately

Answer 19

B.

Question 20

Bond information forms required to be filed with the Div of Bond Finance must be filed for all bonds issued by a LG in FL, including conduit financings & obligations maturing in less than 1 year.

Answer 20

FALSE

Question 21

Failure to comply with the reporting requirements is a capital offense, punishable by death or life in prison for the chief financial officer of the LG.

Answer 21

FALSE
———–
Get reported to Legis Audit Comm. Cd withhold State funds.

Question 22

All fees paid by an underwriter in connection with the purchase of LG bonds must be disclosed to the issuer prior to the sale of such bonds, but no fees, including finders fees, have to be disclosed in the official statement for the bonds.

Answer 22

FALSE

Question 23

Notice of the sale of bonds by a LG must be published at least 30 days prior to the sale date.

Answer 23

“saleofbond” = 10 ltrs = 10 days
———–
FALSE, 10 days

Question 24

There are no limitations on the rate of interest which local government bonds may bear.

Answer 24

FALSE

statute has complex formula

Question 25

State difference b/w Form 2003 & 2004, include content & filing deadline.

Answer 25

0h 3, feel free
0h ‘f’our, ‘f’ees = most important
———–
(A) 2003 - gen info, lenient, asap aft issue, filed by all.
(B) 2004 - fees, strict, 120 days, filed by all but exempt for conduit & bond anticipation notes.