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§ 5065. Unenhanced Sales with Unrated or Non-Investment Grade Credit Rating.

4 CA ADC § 5065Barclays Official California Code of Regulations

Barclays California Code of Regulations

Title 4. Business Regulations

Division 9.5. California Debt Limit Allocation Committee

Chapter 1. General Provisions

Article 6. Bond Sale Structure Requirements

4 CCR § 5065

§ 5065. Unenhanced Sales with Unrated or Non-Investment Grade Credit Rating.

Currentness

(a) Applications for Bonds to be issued with unrated or unenhanced non-investment grade credit ratings will be permitted only for limited recourse Government Bond issues and Qualified Private Activity Bonds and will be deemed to have satisfied the minimum Bond sale requirements required in section 5060 if the following is provided:

(1) Placement Agent Statement.

(2) Certifications of no current Bond Defaults by the Issuer, guarantor (if any) and the Project Sponsor (if any).

(3) Complete marketing plan.

(b) In addition to the requirements of subdivision (a) of this section, awards of Allocation will be subject to the following conditions:

(1) The submission of a Traveling Investment Representation Letter due three (3) business days before issuance; or

(2) Minimum Bond denominations as follows:

(A) $100,000 for Bond issues equal to or less than $100,000,000; or

(B) $250,000 for Bond issues over $100,000,000.

(3) Applicants will state in both the Application and marketing plan whether they favor a CDLAC award with a Traveling Investment Representation Letter requirement or with the minimum denomination requirement. The marketing plan's stated issuance structure and offering summary must reflect the Applicant's preference.

Credits

Note: Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.