3. Comm policy-Post Issuance Debt Compliance

CASS COUNTY COMMISSION POLICY MANUAL 21.52 SUBJECT: POST ISSUANCE DEBT COMPLIANCE POLICY ADOPTED DATE: AUGUST 4, 2014 PAGE 9 OF 9 Private Activity Bonds The County may issue tax-exempt obligations that are "private activity" bonds because either (1) the bonds finance a facility that is owned by the County but used by one or more qualified 501(c)(3) organizations, or (2) the bonds are so-called "conduit bonds", where the proceeds are loaned to a qualified 501(c)(3) organization or another private entity that finances activities eligible for tax-exempt financing under federal law (such as certain manufacturing projects and certain affordable housing projects). Prior to the issuance of either of these types of bonds, the County Auditor shall take steps necessary to ensure that such obligations will remain in compliance with the requirements of this Post-Issuance Debt Compliance Policy. In a case where compliance activities are reasonably within the control of a private party (i.e., a 501(c)(3) organization or conduit borrower), the County Auditor may determine that all or some portion of compliance responsibilities described in this Post-Issuance Debt Compliance Policy shall be assigned to the relevant party. In the case of conduit bonds, the conduit borrower will be assigned all compliance responsibilities other than those required to be undertaken by the County under federal law. In a case where the County Auditor is concerned about the compliance ability of a private party, the County Auditor may require that a trustee or other independent third party be retained to assist with record keeping for the obligation and/or that the trustee or such third party be responsible for all or some portion of the compliance responsibilities. The County Auditor is additionally authorized to seek the advice, as necessary, of bond counsel and/or its financial advisor to ensure the County is in compliance with this Post- Issuance Debt Compliance Policy. Adopted this 4th day of August, 2014, by the Board of County Commissioners of Cass County, North Dakota. HISTORICAL REFERENCE DATE: AUGUST 4, 2014