05-B Arbitrage Rebate Contract - Laserfiche WebLink

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APPENDiX A-FEES The Bonds to be covered initially under this conhact include all issues of tac-exempt bonds delivered subsequent to the effective dates of the rebate requuements, under the Code, except for issues which qualify for exceptions to the rebate requiremenu in accordance with Section 148 of the Code and celated Treasury regulations. The fee for each of tUe Bonds included in this contract shall be: Description Annual Fees Per Issue Per Computation Year (1) Base Fee Per Computation Year: $2,000 Additional Charges for Special Services Related to: Debt Service Reserve Funds $500 Commingled Funds $500 Transferred Proceeds $T0 Debt Service Fund Residual Calculations (Excess Tax Collections) $500 $100,000 Test for Debt Service Funds $500 Variable/Floating Rate Bond Issue $1,000 Yield Restriction Analysis/Yield Reduction Computation $500 Premium for Quick Turnaround (Preliminary or Final Numbers within 21 days or less) $500 Preparation of IRS Refund Request (2) Commercial Paper: Per allxated issue to perform azbitrage rebate computatioa $4•000 Penalty Calculations: Semiannual fee for each issue of Bonds re azcUess of issue size. $1,000 (1) A"Computation Yeu" represenu a one yeaz period from the delivery date of the issue to the date that is one calendar year after the delivery date, and each subsequent one-year period thereafrer. Therefore, if a calculation is required that covers more than one "computation year," the annua( fee is multiplied by the number of computation yeazs contained in the calculation being performed. For example, if the first calculation performed for an issue covers tluee computation years, the fee for that calculation would be t6ree times the annual fees stated above. (2) Fee based upon complexities involved and estimated time to complete request. EXPLANATION OF AD.iUSTMENTS TO BASE FEE Debt Service Reserve Funds. The authorizing dceuments for many revenue bond issues require that a separate fund be established (the "Reserve Fund") inro which either hond proceeds or revenues are deposited in an amount equal to some designated level, such as average annual deht service on all pariry bonds. This Reserve Fund is established for the benefit of the bondholders as additional sewrity for payment on the debt. In most instances, the balance in the Reserve Fund remains stable throughout [he life of the bond issue. Reserve Funds, whether funded with bond prceeeds or revenues, must be included in any calculations of rebate. 2. Commingled Fund Allocations. By definition, a commingled fund means that the proceeds of any particular bond issue have been deposited in a fund that contains amounts that aze not part of that bond issue. I[ is common for issuers to commingle bond proceeds with either operating revenues or other bond proceeds. The ubitrage regulations, while 4