Nevada Administrative Code
Chapter 349 - State Obligations
REVENUE BONDS FOR INDUSTRIAL DEVELOPMENT
Section 349.045 - Requirements for bonds

Universal Citation: NV Admin Code 349.045

Current through September 16, 2024

1. Bonds issued pursuant to NAC 349.010 to 349.080, inclusive, whether tax-exempt or taxable:

(a) If the amount of the requested bonds is $5,000,000 or more, must have a credit enhancement and be sold into the public bond market;

(b) If the amount of the requested bonds is less than $5,000,000, may be:
(1) Sold into the public bond market; or

(2) Privately placed with sophisticated investors if all bond purchase agreements and transaction documents ensure that the bonds are only sold or transferred to other sophisticated investors;

(c) If variable-rate bonds, must:
(1) Use hedging or interest rate protection mechanisms to maintain the interest rate of the bonds within an acceptable range, as determined by the Director, for so long as the bonds are outstanding; and

(2) Have the cost of any hedging or interest rate protection mechanisms fully accounted for when calculating the cost of the bonds for comparison with alternative bond structures;

(d) Must have the proposed costs of bond issuance preapproved by the Director before any preliminary official statement or marketing materials are released; and

(e) Must be for a project which:
(1) Does not have less than 25 percent of its total financing from equity sources;

(2) Maintains its funds from equity sources in the form of cash or other similarly liquid assets; and

(3) Conforms with all applicable environmental and energy-efficiency related federal and state laws and regulations.

2. As used in this section, "sophisticated investor" means an investor viewed by an issuer or underwriter as having sufficient resources, market knowledge and experience to understand and bear the risks involved in a particular investment.

Added to NAC by Dep't of Business & Industry by R104-08, eff. 12-17-2008

NRS 349.630

Disclaimer: These regulations may not be the most recent version. Nevada may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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