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Bonds issued by the Authority should contain at
least one of the following attributes:
- Investment Grade Rating from a Nationally
Recognized Agency; or
- Letter of credit, bond insurance, or guarantee
from an organization with an Investment Grade Rating; or
- Privately placed with Qualified Institutional
Buyers, in minimum denominations of $100,000, which provide an Investor
Letter; or
- A public offering limited to Qualified
Institutional Buyers or Accredited Investors, in minimum denominations of
$100,000. The bonds will be sold through an Underwriter with an acceptable
disclosure document and legal opinion.
The Authority reserves the right to grant
exceptions to the foregoing upon its determination through a preliminary
resolution that the bond transaction does not create unnecessary exposure or
risk to the Authority.
Definitions
| Qualified Institutional Buyers: |
As defined
in Rule 144A promulgated by the Securities Exchange Commission under the
Securities Act of 1933. |
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| Accredited Investors: |
As defined by the
Securities Exchange Commission under the Securities Act of 1933. |
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| Investment Grade Rating: |
Minimum rating of
BBB- or Baa3 |
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| Investor Letter: |
A letter signed by each
Institutional Investor acknowledging the risks associated with the securities
being purchased and a representation of its financial ability to take such
risks, its access to information on the securities and its intent to hold the
securities for investment purposes. The letter must state that the Institutional
Investors have not relied on information provided by the Authority. |
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| Nationally Recognized Agency: |
Fitch
Ratings, Standard & Poor's Ratings Services, or Moody's Investors Service |
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| Underwriter: |
A registered broker-dealer of
municipal securities |
Adopted: May 22, 2008
Austin Building, Lansing MI
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