Current through Register Vol. 35, No. 18, September 24, 2024
A. A corporation
which meets the qualifications set forth in Parts I and II [now 2.60.26.3 NMAC
and 2.60.26.8 NMAC], above, may request that the state investment council make
a purchase of bonds, notes, debentures or other evidence of indebtedness
pursuant to Section 7-27-5.4(B) by submitting a proposal containing the
following:
(1) A certified copy of the
corporation's articles of incorporation.
(2) Evidence that the bond rating on the
corporation's debt meets the minimum requirement set by statute or that an
irrevocable, unconditonal letter of credit from a qualified financial
institution or corporation can be provided.
(3) A comprehensive business plan detailing
the corporation's proposed expansion venture or new outlet in New Mexico, under
Section 7-27-5.4(B), and a projected time frame for completion of the project
following approval by the state investment council and subsequent
funding.
(4) A project cost
analysis which contains a clear and concise statement by the corporation of the
planned utilization of funds received pursuant to Section 7-27-5.4(B),
including the total estimated cost of the project, the total amount of funding
requested pursuant to Section 7-27-5.4(B), other sources of funding for the
project, if any, and a quarterly cash flow schedule showing both the amount and
purposes of the projected expenditures of funds received pursuant to Section
7-27-5.4(B).
(5) Balance sheet and
income statements before the project indicating the financial condition of the
corporation and proforma statements of estimated income and cash flows of the
corporation after the project.
(6)
A description of the debt instrument, including a description of its terms,
conditions, collateralization, a proposed repayment schedule and bond rating.
Interest payments should be structured on a semi-annual basis. If a letter of
credit is being used to qualify the investment a copy of the letter of credit
which must be irrevocable, unconditional, for the life of the
investment and payable to the state of New Mexico.
(7) Evidence that the debt instrument has
been issued in accordance with all state and federal securities regulations,
including registration with the securities and exchange commission.
(8) A statement from the corporation's
independent auditor attesting to the following:
(a) the receipt, expenditure and utilization
of state funds received by or for the corporation pursuant to Section
7-27-5.4(B) shall be accounted for in such a manner that the receipt,
expenditure, and utilization of such funds are clearly identified on the books
of the corporation and distinguished from the receipt, expenditure, and
utilization of other funds of the corporation, and
(b) any state funds which are received
pursuant to Section 7-27-5.4(B) and held by or for the corporation prior to
their expenditure shall be recorded on the books of the corporation separately
from the other funds of the corporation and shall be earmarked for expenditures
related to the project or purposes described in the proposal submitted to the
state investment council.
B. Corporations shall submit their formal
proposal and any supplementary information, documentation or evidence requested
by the members of the council to the state investment office. The proposal and
final closing documents will be subject to approval as to legal sufficiency and
form by the New Mexico attorney general and/or bond counsel acting for the
state. All costs of issuance, including SIC bond counsel, will be paid by the
corporation.
