(a) Bond Ratings. All publicly offered Bonds issued
by the Department to finance Developments shall have a debt rating
the equivalent of at least an "A" rating assigned to long-term obligations
by Standard & Poor's Ratings Services, or Moody's Investors Service,
Inc. If such rating is based upon credit enhancement provided by an
institution other than the Applicant or Development Owner, the form
and substance of such credit enhancement shall be subject to approval
by the Board, evidenced by a resolution authorizing the issuance of
the credit enhanced Bonds.
(b) Investment Letters. Bonds rated less than "A" or
Bonds which are unrated must be placed with one or more Institutional
Buyers and must be accompanied by an investor letter acceptable to
the Department. Subsequent purchasers of such Bonds must also be qualified
as Institutional Buyers and must execute and deliver to the Department
an investor letter in a form satisfactory to the Department. Bonds
rated less than "A" and Bonds which are unrated shall be issued in
physical form, in minimum denominations of one hundred thousand dollars
($100,000), and must carry a legend requiring any purchasers of the
Bonds to be Institutional Buyers and sign and deliver to the Department
an investor letter in a form acceptable to the Department.
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