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Pages 70-82

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From page 70...
... 70 6.1 Overview An essential component of sound debt management practices is ongoing compliance with post-issuance requirements. This requires that practitioners stay abreast of the rules, regulations, and the proper guidance available for compliance.
From page 71...
... Phase 4: Post-Issuance Compliance Strategy 71   the categories of post-issuance requirements based on the three categories in GFOA's post-issuance compliance checklist. Additionally, issuers should consider that bond documents themselves, such as trust indentures, may have separate reporting and compliance requirements.
From page 72...
... 72 Guidebook for Effective Policies and Practices for Managing Surface Transportation Debt investing bond proceeds to make sure certain arbitrage rules are followed, including privateuse rules for expending proceeds.3 Issuers that violate tax-exemption compliance are encouraged to be proactive and practice heightened self-reporting. If tax-exempt status is violated -- such as by failure to pay arbitrage rebate, improper spend down, or improper application of bond proceeds -- it may be rectified.
From page 73...
... Phase 4: Post-Issuance Compliance Strategy 73   6.3 Managing Post-Issuance Compliance Based on Organization Structures 6.3.1 Key Decision-Making Factors: Post-Issuance Responsibilities ere is variation in the assignment of debt management authority across states, municipalities, and public authorities, and the resulting responsibility for managing post-issuance compliance requirements. In some instances, post-issuance compliance for surface transportation debt is managed by a centralized agency, particularly within state governments, and in other instances, post-issuance compliance is entirely managed by the surface transportation agency with oversight from outside agencies.
From page 74...
... 74 Guidebook for Effective Policies and Practices for Managing Surface Transportation Debt Where issuers lie on the spectrum, as depicted in Figure 22, will dictate which practices are appropriate for meeting post-issuance compliance requirements. For issuers who fall along the middle of the spectrum, and must work with other agencies to meet requirements, collaboration and communication will be key to eectively meeting requirements.
From page 75...
... Phase 4: Post-Issuance Compliance Strategy 75   6.4 Managing Capacity and Resources 6.4.1 Key Decision-Making Factors: Capacity Post-issuance compliance is an ongoing process, requiring issuers to dedicate necessary time and resources to meet requirements over the life of the debt. is can pose challenges to issuers with limited dedicated sta, while large issuers can leverage extensive teams to manage these responsibilities more easily.
From page 76...
... 76 Guidebook for Effective Policies and Practices for Managing Surface Transportation Debt 6.4.2 Tools: Procedures and Leveraging Outside Professionals Most issuers can maximize capacity and resources to meet post-issuance compliance requirements by relying on two eective tools: (1) establish clear policies and procedures so employees have a path to follow during this process, and (2)
From page 77...
... Phase 4: Post-Issuance Compliance Strategy 77   6.4.3 Tools: Checklists and Templates Certain tools can also help to streamline the process and make sure that the sta and resources available to meet post-issuance compliance are used eectively. MassDOT (Example 34)
From page 78...
... 78 Guidebook for Effective Policies and Practices for Managing Surface Transportation Debt due diligence when reporting post-issuance compliance calculations. Ultimately, the frequency and volume of reporting will be dictated by the frequency of issuances.
From page 79...
... Phase 4: Post-Issuance Compliance Strategy 79   debt (i.e., when an issuer enters into an arrangement with a bank for that bank to take ownership of the bonds) .12 Issuers should monitor statements from GASB, SEC, MSRB and IRS to maintain an understanding of potential changes in the reporting process.
From page 80...
... 80 Guidebook for Effective Policies and Practices for Managing Surface Transportation Debt 6.7 Establishing a Repeatable and Reliable Process 6.7.1 Key Decision-Making Factors: Repeatable and Reliable Process To maintain an eective strategy for post-issuance compliance requirements, issuers should continue to revise their process to not only respond to the changing regulatory environment, but to learn from past errors and missteps. is process of learning will enable issuers to build a robust, repeatable, and reliable post-issuance compliance process.
From page 81...
... Phase 4: Post-Issuance Compliance Strategy 81   Example 41. Proactive Issue Identication (Ohio)
From page 82...
... 82 Guidebook for Effective Policies and Practices for Managing Surface Transportation Debt 6.8 Summary Phase 4 is an ongoing process that issuers must continue to implement during the life of all outstanding debt. To successfully complete this phase, issuers should continue to revise and refine their existing policies and procedures to respond to lessons learned and changes to regulations at the state and federal level.

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