Montana Code 17-5-1316. Allocations by the department
17-5-1316. Allocations by the department. (1) The department shall administer the allocation of the state‘s volume cap to issuers in accordance with 17-5-1312, 17-5-1313, and this section. Applications for an allocation for each issue of bonds must be made to the department in an acceptable form and, if applicable, must contain the following:
Terms Used In Montana Code 17-5-1316
- Allocation: means an allocation of a part of the state's volume cap to an issuer pursuant to this part. See Montana Code 17-5-1302
- Bonds: means bonds, notes, or other interest-bearing obligations of an issuer. See Montana Code 17-5-1302
- Cap bonds: means those private activity bonds and that portion of governmental bonds for which a part of the volume cap is required to be allocated pursuant to the tax act. See Montana Code 17-5-1302
- Department: means the department of administration. See Montana Code 17-5-1302
- Issuer: means a state issuer or local issuer. See Montana Code 17-5-1302
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- Tax act: means the latest limitation enacted by the United States congress on the amount of cap bonds that may be issued by a state or local issuer. See Montana Code 17-5-1302
- Volume cap: means , with respect to each calendar year, the principal amount of cap bonds that may be issued in the state in a calendar year as determined under the provisions of the tax act. See Montana Code 17-5-1302
(a)the name of the issuer;
(b)a description of the purpose or purposes for which the proceeds of the cap bonds will be used, including, if appropriate, a description of the project or projects to be financed;
(c)the location of the project or projects;
(d)the name and address of each project owner and user;
(e)a certified copy of the inducement resolution adopted or official action taken by the issuer, pursuant to the tax act, approving the project or the purpose and granting preliminary authorization for the issuance of the cap bonds;
(f)the preliminary opinion of a qualified bond counsel stating that the proposed purpose for which the cap bonds are to be issued qualifies under applicable state law and the tax act and that the interest on the bonds is not taxable as gross income for purposes of federal income taxation;
(g)evidence that all public hearing requirements concerning the proposed purpose and project have been met;
(h)a copy of a letter from an underwriter, bank, or other financial institution certifying that in its opinion the proposed financing is feasible, that the cap bonds may be successfully sold under current market conditions, and that it has reviewed all of the information necessary to form its opinion;
(i)the amount of allocation requested; and
(j)any other information as the department considers necessary.
(2)The department shall issue allocations in chronological order of the receipt of completed applications. Completed applications received by the department on the same day must be ranked according to the earliest inducement resolution or official action date.