Carol Juang McCoog Partner KampL Gates LLP KieuOanh Nguyen Partner Western Financial Group Lynn Tsugie Nagasako Senior Assistant Attorney General Oregon Department of Justice Public Finance 101 Topics ID: 323436
Download Presentation The PPT/PDF document "Public Finance 101: Issuing Bonds for Y..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Public Finance 101: Issuing Bonds for Your Communities
Carol Juang McCoog, Partner, K&L Gates LLP
Kieu-Oanh Nguyen, Partner, Western Financial Group
Lynn Tsugie Nagasako, Senior Assistant Attorney General, Oregon Department of JusticeSlide2
Public Finance 101: Topics
Legal Basics
Bond Market Basics
Issuer’s Counsel’s Perspective – Oregon AG
Tumbling Through the Great RecessionSlide3Slide4
Public Finance 101: General Legal Basics
State Law – Authority
Sources: State Constitution, State Statutes, Codes and Charters
Vote required; subject to referral; neither
Use of ProceedsSlide5
Pubic Finance 101: General Legal Basics
Federal Tax Law
Governmental Purpose; Capital Expenditure
Earnings on Bond Proceeds
State Tax LawSlide6
Public Finance 101: General Legal Basics
Federal Securities Law
Exemption from Registration
Anti-Fraud Provisions
Continuing Disclosure
State Securities LawSlide7
Pubic Finance 101: Bond Market Basics
Establishing the facts
Projects financed (useful life)/drawdown of funds
Source of repayment
Security
Tax status (taxable or tax-exempt, bank qualification)Financing optionsShort-term debt (lines of credit, notes)Long-term debt (bonds)Government loan programs/bank placement/publicly-offered issueSlide8
Pubic Finance 101: Bond Market Basics
Structuring a bond issue
Security
Amortization
Call provisions
Determine method of saleParties involvedOfficial Statement/Rating processBid opening/pricingClosingPost-saleSlide9Slide10Slide11
Pubic Finance 101: Issuer’s Counsel’s Perspective – Oregon Attorney General
Oregon Revised Statutes (ORS) 180.060(6) states:
“The Attorney General shall, when requested, perform all legal services for the state or any department or officer of the state.”
ORS 180.060(2) and (3) provide that in the performance of those duties, the Attorney General may not, except in one limited circumstance, issue any legal opinions to third parties.Slide12
Pubic Finance 101: Issuer’s Counsel’s Perspective – Oregon Attorney General
Role of DOJ During the Issuance of Bonds:
General Obligation Bonds
Revenue Bonds
Conduit BondsSlide13
Public Finance 101: Tumbling Through the Great Recession (2008)
Bond Insurers Downgraded
Banks Going Under
Auction Rate/VRDO Markets Freeze
SWAPs terminate
GICs needing to be collateralizedDebt service reserves no longer filledSlide14
Public Finance 101: Tumbling Through the Great Recession (2009 – 2010)
The Federal Stimulus Act
Build America Bonds (direct subsidy bonds)
Qualified School Construction Bonds (tax credit; direct subsidy)
Recovery Zone Facility Bonds; Recovery Zone Economic Development Bonds (tax-exemption)Slide15
Public Finance 101: Tumbling Through the Great Recession (2011)
The Recovery
Many programs ended; some continue
Tax overhaul proposals include revival of some programs and ending of traditional tax-exemption
Federal government hitting debt ceiling