1.1. Form of Application. The form of application for reservation of volume cap shall be substantially in the form attached to these regulations as Appendix A-1 (the “Application for Reservation”). The Application for Reservation must include (i) the name of the issuer; (ii) the principal amount of bonds to be issued; (iii) the amount of volume cap allocation sought; (iv) the purpose of the bonds, including a description of any project to be funded with bond proceeds; (v) the principal users of the bond proceeds (if different than the issuer); (v) the date of adoption of the bond authorizing resolution or other official action; (vi) the Arkansas statutory authority for the issuance of the bonds; and (vii) the name and address of bond counsel. The Application for Reservation must be signed and dated by bond counsel. No Application for Reservation shall be accepted until after the issuer has declared its “official intent” to issue the bonds. For the purposes of these regulations, “official intent” must meet the requirements of Section 1.150-2(e) of the Treasury Regulations. No Application for Reservation of volume cap with respect to a given calendar year may be filed until the first business day of such calendar year.

1.2. Manner of Filing Application. All Applications for Reservation must be delivered to the Authority, and shall be addressed to:

Applications for Reservations shall be accepted only upon delivery to the Authority, and the date of receipt (the “Filing Time”) of each Application for Reservation shall be noted by the Authority on the application. All Applications for Reservation received on any given day shall be assigned the same Filing Time.

The Authority may also, according to procedures to be established, provide for the filing of applications by e-mail or other electronic means.

1.3. Review of Requests for Reservation. The President of the Authority, or his or her designee, shall review each application for compliance with the Act and these regulations, and may reject any application that is not in compliance. The President of the Authority, or his or her designee, shall notify bond counsel of any such rejection within ten (10) days of such rejection. The issuer of any such Affected Bonds may appeal, within ten (10) days, any such rejection to the Volume Cap Allocation Committee, created pursuant to Section 2.3, below. If, pursuant to such appeal, the decision to reject the application is overturned, then the Application for Reservation shall be reinstated, and the issuer shall be granted a Reservation Date as determined by the ruling of the Volume Cap Allocation Committee.

1.4. Acknowledgment of Reservation. Within ten (10) days of receipt of the Application for Reservation, the Authority shall send an acknowledgment of reservation to the bond counsel that signed the application. Such acknowledgment shall include (i) notice that the Application for Reservation has been received, and the Filing Time; (ii) the priority number granted to such application, if one has been granted; and (iii) whether volume cap has been allocated to the issue, and, if not, a statement of explanation. If volume cap has been allocated to the issue, the acknowledgment shall constitute evidence of such allocation for purposes of compliance with the Internal Revenue Code of 1986, subject only to timely issuance of the Affected Bonds within the Reservation Period and the filing of a Notice of Issuance as described in Section 1.8.

1.5. Determination of Reservation Date. For all applications received prior to September 1 of each calendar year, and unless (i) a shortage situation is in effect as described in Section 2.2 below, or (ii) the Application for Reservation is for multifamily residential housing bonds, volume cap shall be allocated on the basis of the Filing Time, and the Filing Time shall be the “Reservation Date,” for purposes of these regulations. After September 1 of each calendar year or in a shortage situation, or for multifamily residential housing bonds, the Reservation Date shall be the date on which volume cap is allocated as provided herein.

1.6. Reservation Period. No Application for Reservation may be made more than sixty (60) days prior to the expected date of issuance of the Affected Bonds. The Affected Bonds must be issued within sixty (60) days of the Reservation Date or by December 31st of the applicable calendar year if such date occurs prior to the expiration of the sixty (60) day period (such period of time from the Reservation Date to the earlier of (a) sixty (60) days thereafter or (b) December 31st of that year being the “Reservation Period”), unless the Reservation Period is extended as set forth in Section 1.7 of these regulations. Upon expiration of the Reservation Period, an applicant must file a new Application for Reservation and receive a new Reservation Date and priority number.

1.7. Extension of Reservation Period.

1.8. Notice of Issuance of Bonds. In order to notify the Authority of the actual use of volume cap for the concerned Affected Bonds, the issuer must file, prior to the expiration of the Reservation Period in the same manner as set forth for the filing of an Application for Reservation, a Notice of Issuance in substantially the form attached to these regulations as Appendix B-1. If a Notice of Issuance is not filed by the expiration of the Reservation Period, the Authority shall notify bond counsel for the issuer of the failure to file and determine whether the Affected Bonds were in fact issued. Failure to timely file the Notice of Issuance shall not affect the volume cap allocation.