Utah Admin. Code R357-7-7 - Transfer of Certificates, Tax Credit Redemption Certificates, Certificates of Eligibility and Tax Credit Balance Certificates
(1) Certificates, Certificates of
Eligibility, Tax Credit Redemption Certificates and Tax Credit Balance
Certificates shall be transferrable in whole or in part by a Designated
Investor to any Transferee or Transferees.
(2) Transfer of a Certificate, Certificate of
Eligibility, Tax Credit Redemption Certificate or Tax Credit Balance
Certificate may be effected by the Transferor's surrender of such certificate
to the Board with an endorsement in favor of the Transferee, a statement
containing the name, address and taxpayer identification number of the
Transferee and a written request for the Board to issue a replacement
certificate in the name of the Transferee.
(a) In any case where the Transferor requests
that more than one replacement certificate be issued, such request must be
accompanied by a statement by the Transferor that sets forth the amount of tax
credits represented by the Transferred Certificate, Certificate of Eligibility,
Tax Credit Redemption Certificate or Tax Credit Balance Certificate that are
requested to be represented by each replacement Certificate, Certificate of
Eligibility, Tax Credit Redemption Certificate or Tax Credit Balance
Certificate.
(3) Within
20 Business Days after the surrender and endorsement of a Certificate,
Certificate of Eligibility, Tax Credit Redemption Certificate or Tax Credit
Balance Certificate, the Board shall issue one or more replacement
Certificates, Certificates of Eligibility, Tax Credit Redemption Certificates
or Tax Credit Balance Certificates, as applicable, in the name of the
applicable Transferee. If a Transferor requests the Transfer of only a portion
of a Certificate, Certificate of Eligibility, Tax Credit Redemption Certificate
or Tax Credit Balance Certificate, the Board shall issue a replacement
Certificate, Certificate of Eligibility, Tax Credit Redemption Certificate or
Tax Credit Balance Certificate to the Transferor setting forth the aggregate
amount of remaining tax credits represented by such Certificate, Certificate of
Eligibility, Tax Credit Redemption Certificate or Tax Credit Balance
Certificate.
(4) Upon the surrender
of a Certificate, Certificate of Eligibility, Tax Credit Redemption Certificate
or Tax Credit Balance Certificate to the Board, and the issuance of the
applicable replacement certificate or certificates for Transfer, such
surrendered certificate shall be cancelled.
(5) A Designated Investor may grant security
interests in such Designated Investor's Certificate, Certificate of
Eligibility, Tax Credit Redemption Certificate or Tax Credit Balance
Certificate, and any tax credits represented thereby, as collateral for loans
to or other obligations of such Designated Investor. The Designated Investor
shall provide notice to the Board of any such grant of a security interest
promptly after any such grant is made.
(6) A Designated Investor shall be entitled
to Transfer a Certificate, Certificate of Eligibility, Tax Credit Redemption
Certificate or Tax Credit Balance Certificate without also transferring its
corresponding Private Investment in a Utah Fund of Funds. In such event, a
Transferee will be entitled to exercise its rights with respect to a
Transferred Certificate, Certificate of Eligibility, Tax Credit Redemption
Certificate or Tax Credit Balance Certificate, as described in such
certificate, and as set forth in the Act and the rules set forth in this
chapter, by reference to the portion of the Transferor's Private Investment
held prior to such Transfer that bears the same proportion to the Transferor's
total Private Investment held prior to such Transfer that the tax credits
represented by such Transferred Certificate, Certificate of Eligibility, Tax
Credit Redemption Certificate or Tax Credit Balance Certificate bears to the
total tax credits represented by the Transferor's Certificate, Certificate of
Eligibility, Tax Credit Redemption Certificate or Tax Credit Balance
Certificate prior to such Transfer, as if such portion of the Transferor's
Private Investment had been Transferred to the Transferee. Accordingly, the
Capital Invested, Scheduled Return, and Actual Return applicable to the
Transferee shall be determined by reference to such portion of the Transferor's
Private Investment, including amounts related to principal loaned, capital
contributed, receipts and returns that are transacted prior to such Transfer
with respect to such portion. If a Transferor does not hold a Private
Investment, a Transferee of a Transferred Certificate, Certificate of
Eligibility, Tax Credit Redemption Certificate or Tax Credit Balance
Certificate shall be entitled to the exercise the rights with respect thereto
by reference to the Private Investment of such Transferor's predecessor or
successor in interest, as the case may be, in the same proportions as described
above.
Notes
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