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Oregon Bulletin

March 1, 2012

Oregon State Treasury, Chapter 170

Rule Caption: Clarifies and amends DMD fees for Conduit Revenue Bond Sales, Replacement of SWAP or Liquidity Providers, and Advance Refundings.

Adm. Order No.: OST 1-2012(Temp)

Filed with Sec. of State: 1-26-2012

Certified to be Effective: 1-26-12 thru 7-1-12

Notice Publication Date:

Rules Amended: 170-061-0015

Subject: Amendments to this rule will clarify the Debt Management Division’s fee charged to an agency replacing a SWAP Counter Party Provider or Liquidity Provider for an outstanding bond transaction. An agency will be charged, in many cases, less than if the agency were issuing new bonds.

 Amendments to this rule provide for the Debt Management Division to specifically charge for the Division’s work to generate past Overlapping Debt Reports. Debt reports from prior years often require staff to do atypical research and analysis to complete. These type reports are expected to be requested more frequently as local government issuers use the report to fulfill past continuing disclosure requirements. This need for prior year overlapping debt reports is often the result of the Securities and Exchange Commission requiring bond underwriters to do more thorough due diligence with new municipal bond issues. Current year debt reports are provided to local government bond issuers free of charge, as the cost for those reports is covered under the Administrative Tracking and Reporting fee.

 Amendments to this rule also clarify f the fees charged by the Debt Management Division to state agencies related to the issuance of conduit revenue bonds apply for new money issues, and refundings or restructuring of conduit revenue debt. These amendments also eliminate the review and approval fee for a state agency advance refunding plans, which is no longer a required by state law.

Rules Coordinator: Curtis Hartinger—(503) 378-3150

170-061-0015

Fees Charged by the Debt Management Divisions

(1) State agencies. The OST shall charge the following fees in connection with the services, duties and activities of the OST related to bonds issued for state agencies by the State Treasurer:

(a) Agency Bond Issues of $15 million or less. For a single series bond sale of $15 million or less, a state agency will be charged $15,000 per sale. For a bond sale of $15 million or less by a single state agency with multiple series, the state agency will be charged the greater of (i) $15,000 or (ii) $6,000 per series. For a bond sale of $15 million or less by two or more state agencies, each agency will be charged the greater of (i) $7,500 or (ii) $6,000 for each series sold for the agency. This subsection applies to initial offerings as well as refundings and the restructuring of bonds. This subsection does not apply if the bond sale is a private placement conduit as described below in subsection (c).

(b) Agency Bond Issues of more than $15 million. For a single series bond sale of more than $15 million, a state agency will be charged $20,000. For a bond sale of more than $15 million by a single state agency with multiple series, the state agency will be charged the greater of (i) $20,000 or (ii) $7,000 per series. For a bond sale of more than $15 million by two or more state agencies, each agency will be charged the greater of (i) $10,000 or (ii) $7,000 for each series sold for the state agency. This subsection applies to initial offerings as well as refundings and the restructuring of bonds. This subsection does not apply if the bond sale is a private placement conduit sale described below in subsection (c).

(c) Privately Placed Conduit Bonds are bonds that are payable solely from moneys owed by a party other than the State of Oregon, with no recourse for payment to the State of Oregon, that do not have a publicly disseminated official statement or other offering circular, and are sold to one or more sophisticated investors, accredited investors or qualified institutional buyers. A state agency that privately places conduit bonds will be charged:

(A) $5,000 for sales that in aggregate total $5 million or less;

(B) $10,000 for sales that in aggregate total more than $5 million but less than $10 million; or

(C) $15,000 for sales that in aggregate total $10 million or more. Should conduit bonds be sold publicly or using an official statement then subsection (a) or subsection (b) above applies. This subsection applies to initial offerings as well as refundings and the restructuring of bonds.

(d) Tax Anticipation Notes. A state agency shall be charged $30,000 for each sale of tax anticipation notes.

(e) Interest Rate Exchange Agreements. In addition to any other fee, $25,000 will be charged for the review and approval of a state agency’s first executed interest rate exchange agreement for a specific bond program of the agency. After the first agreement, a fee of $10,000 will be charged for each executed interest rate exchange agreement subsequently entered into by the agency for the same bond program or indenture. These charges do not include costs such as interest rate exchange advisor fees, rating agency charges or printing costs which are payable by the agency or authority for whom the cost is incurred.

(f) Replacement of Liquidity Providers or SWAP Counter Party Providers. A state agency will be charged $10,000 for activities related to each replacement of a liquidity provider or SWAP counter party provider. These charges do not include costs such as rating agency charges or printing costs which are payable by the agency or authority for whom the cost is incurred.

(2) Public Bodies. OST shall charge the fees set forth below in connection with the services, duties and activities of the OST related to bonds issued by public bodies in Oregon; expenses incurred in reviewing refunding and defeasance plans may be charged against the bond proceeds or may be paid by the public body from such other funds as may be available:

(a) Advance refunding plan application and review. The application fee for submission of an advance-refunding plan is $350. The fee for review and approval of an advance refunding plan is $3,000 per sale of refunding bonds for sales of $2 million or less, and $5,000 per sale of refunding bonds for sales exceeding $2 million. If the plan is not approved or the refunding not completed the review and approval fee will not be charged.

(b) Oregon School Bond Guarantee Program. School Districts that submit an application for participation in the Oregon School Bond Guarantee Program shall submit an application fee of $200 to OST at the time their application is submitted. School Districts whose bonds are guaranteed by the state shall submit to OST, within 10 business days of closing of any guaranteed bonds, a fee equal to .03% (.0003) of the total principal and interest due, assuming the bonds are paid on their regularly scheduled maturity or redemption dates. If bonds are issued as “Qualified Bonds” under OAR 170-063-000 that may be converted to an interest bearing format over and above interest payments that may be due and payable under the original terms of bonds, the fee for such Qualified Bonds shall be equal to .045% (.00045) of the total principal and interest due, assuming the bonds are paid on their regularly scheduled maturity or redemption dates and that there is no conversion to a different interest bearing format than the original terms of the bonds.

(3) Municipal Debt Advisory Commission. OST shall charge the following fees in connection with the services, duties and activities of the OST as staff to the Municipal Debt Advisory Commission.

(a) Administrative Tracking and Reporting fee. Local Government entities shall submit, at the time of closing, a fee equal to: (i) $800 for bond sales of $8 million or less, (ii) 0.01% (0.0001) of the principal amount for bond sales of greater than $8 million but, less than $50 million, or (iii) $5,000 for bond sales of $50 million or greater.

(b) Overlapping Debt Report fee. Overlapping Debt Reports requested for any date within one year of the request are provided free of charge. For Overlapping Debt Reports requested for any date greater than one year prior to the request date, subsection (c) applies.

(c) Other fees and charges. Fees for specialized reports and services shall be determined by the number of hours spent producing such specialized report or service times the rate of $115 per hour.

(4) Private Activity Bonds.

(a) Current Year Allocation. State agencies or public bodies that submit an application for allocation of the state’s private activity bond volume limit (“CAP”) for the current year to the Private Activity Bond Committee under OAR 170-071-0005 shall submit an application fee of $200 to OST when their application is submitted. State agencies or public bodies who receive CAP shall pay to OST: (i) For a bond sale of $10 million or less, a fee equal to $3,000, payable within 10 business days of the closing bond sale, (ii) For a bond sale of more than $10 million, a fee equal to $10,000 payable within 10 business days of the closing bond sale, or (iii) for a Mortgage Credit Certificate program, a fee equal to $2,000, payable within 10 business days of the date of the notice of allocation by OST.

(b) Carry Forward Allocation. State agencies or public bodies that submit an application for carry forward CAP allocation under OAR 170-071-0005(10) shall submit an application fee of $200 to OST when their application is submitted. State agencies or public bodies who receive carry forward CAP shall pay to OST:

(c) For a bond sale of $10 million or less, a fee equal to $3,000 of which the first $500 is payable within 10 days of the date of the notice of allocation by OST, with the balance payable within 30 days of the closing of the first bond sale associated with the allocation, (ii) For a bond sale of more than $10 million, a fee equal to $10,000 of which the first $2,000 is payable within 10 days of the date of the notice of allocation by OST, with the balance payable within 30 days of the closing of the first bond sale associated with the allocation, or (iii) for a Mortgage Credit Certificate program, a fee equal to $2,000, payable within 10 business days of the date of the notice of allocation by OST.

(5) OST may, at its discretion, waive or reduce any fee outlined in sections (1) to (4) based on compelling financial reasons.

Stat. Auth.: ORS 286A.014, 287A.370 & 287A.634
Stats. Implemented: ORS 287A & 286A
Hist.: TD 3-1990, f. & cert. ef. 12-21-90; TD 2-1994, f. & cert. ef. 9-9-94; OST 1-1999, f. & cert. ef. 2-1-99; OST 1-2005, f. & cert. ef. 4-22-05; OST 5-2006, f. & cert. ef. 10-25-06; OST 7-2008, f. & cert. ef. 12-29-08; OST 2-2009, f. & cert. ef. 4-22-09; OST 3-2009, f. & cert. ef. 7-21-09; OST 5-2009(Temp), f. & cert. ef. 10-30-09 thru 4-27-10; OST 1-2010 f. & cert. ef. 1-15-10; OST 2-2010(Temp), f. & cert. ef 1-26-10 thru 7-24-10; OST 4-2010(Temp), f. 6-3-10, cert. ef. 7-1-10 thru 12-27-10; Administrative correction 1-25-11; OST 1-2011, f. & cert. ef. 2-28-11; OST 1-2012(Temp), f. & cert. ef. 1-26-12 thru 7-1-12

Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2011.

2.) Copyright 2012 Oregon Secretary of State: Terms and Conditions of Use

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

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