Cal. Code Regs. Tit. 4, § 5065 - Unenhanced Sales with Unrated or Non-Investment Grade Credit Rating

(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.

Notes

Cal. Code Regs. Tit. 4, § 5065

1. New section filed 7-1-2011; operative 7-1-2011 (Register 2011, No. 26).

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

1. New section filed 7-1-2011; operative 7-1-2011 (Register 2011, No. 26).