Oregon Bulletin
April 1, 2011
Rule
Caption: Restructures Municipal Debt
Advisory Commission Fees for tracking Municipal Debt information using Bond
Tracker Software.
Adm.
Order No.: OST 1-2011
Filed with Sec. of
State: 2-28-2011
Certified to be
Effective: 2-28-11
Notice Publication
Date: 11-1-2010
Rules Amended: 170-061-0015
Subject: Amendments to this rule establish a Municipal Debt
Advisory Commission (MDAC) fee to pay for Debt Management Division staff
support costs related to the ongoing tracking and reporting of all local
government bond issuances in the state of Oregon. These amendments also
eliminate the fee charged by the MDAC through the Division for generating
Overlapping Debt Reports.
Rules Coordinator: Sally Wood—(503) 378-4990
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 does
not apply if the bond sale is a private placement conduit sale of $5 million or
less 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 does not apply if the bond sale is a private placement conduit sale
described below in subsection (c).
(c) Conduit Bond Sales. A state agency will be charged:
(i) $5,000 for conduit bond sales of $5 million or less, (ii) $10,000 for
conduit bond sales of greater than $5 million but less than $10 million, or
(iii) $15,000 for conduit bond sales of $10 million or greater, 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, and when the bonds are sold by
a private placement, with no publicly disseminated official statement or other
offering circular, to one or more sophisticated investors, accredited investors
or qualified institutional buyers. Should conduit bonds be sold publicly or
using an official statement then subsection (b) or subsection (c) above
applies.
(d) Advance refunding plan application and review. 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.
When necessary to review complex proposals, OST may consult recognized experts
whose fees will be charged to the agency, whether or not the refunding is
approved or completed.
(e) Tax Anticipation Notes. A state agency shall be
charged $30,000 for each sale of tax anticipation notes.
(f) 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.
(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) 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: (i) 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
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, 2010.
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