Section 1100.640  Application Guidelines

a)         Introduction. Each applicant institution is encouraged to review the following procedures incident to the preparation of any application for assistance.

b)         Pre-filing Stage.  Prior to the preparation or submission of any application for assistance, each institution is requested to contact the Authority's Executive Director.  The Executive Director will arrange for a meeting, or meetings, with the institution and the Authority's Executive Director, financial advisor, and bond counsel.  The purpose of these meetings is two-fold:

1)         A preliminary evaluation of the proposed project by the institution and the Authority's staff in order to determine, in the first instance, whether or not an application should be submitted to the Authority for its consideration.  (In the event that it is the opinion of the Authority's staff that an application should not be prepared and submitted, this recommendation will be rendered to the Authority for its consideration prior to any further work with respect to the proposed project); and

2)         Where prior Authority authorization is not deemed necessary, the Authority staff shall at once assist the institution in the development of its application for the Authority's information and review.  Additionally, the financial advisor will prepare an initial financial advisory review for the Authority's consideration.  (This initial review consists of a description of the proposed project and a description of the economic background of the applicant institution.)

c)         Filing and Acceptance of Application

1)         Once the application is completed the application will be filed with the Authority.  (The applicant institution is to submit its application fee with the application.)

2)         The Authority's Executive Director will submit this filed application to the Authority for its consideration at its next meeting once the financial advisor's initial financial review is completed.

3)         At the meeting referred to above, the Authority will determine if it will accept the submitted application.  In reaching this conclusion, the Authority will consider:

A)        the application itself;

B)        comments and presentations by representatives of the applicant institution;

C)        the financial advisor's initial review; and

D)        additional observations by the Authority's Executive Director and bond counsel.

4)         If the Authority accepts the application, it will authorize the following tasks:

A)        Bond counsel will be directed to undertake a preliminary investigation of legal feasibility of the project.  (This investigation will not consist, however, in the preparation or drafting of documents incident to the proposed issue itself; rather, this study will address itself to an appraisal of the appropriations and needs of the issue itself); and

B)        Financial advisor will be directed to prepare a detailed financial study of the proposed application.  Upon completion of this study, the financial advisor will submit to the Authority its specific recommendation or recommendations.

5)         Upon acceptance of the application by the Authority, the application fee shall be deemed non-refundable and shall be deposited by the Authority.

6)         Neither the work of the bond counsel or financial advisor, with respect to a given project, is paid by the Authority.  In the event that the proposed project does not come to issue, the applicant institution shall pay both the financial advisor and bond counsel their reasonable fees incurred for all work so performed on behalf of the institution subsequent to the Authority's acceptance of the application.  It shall be the duty of the institution and the financial advisor and bond counsel, respectively, to determine and agree upon the reasonableness of fees involved.

d)         Approval of Application

1)         The Authority will decide whether or not to approve an accepted application once the financial advisor and bond counsel have completed their reviews of the project.

2)         If the accepted application is approved, the financial advisor, Executive Director, and bond counsel will be authorized and directed to prepare all documents and showings necessary and incident to issuance of bonds for the applicant institution.

3)         "Approval" of an application by the Authority is not, nor should be, construed as any form of a commitment or guarantee, on the part of the Authority to the applicant institution that the proposed financing will be successfully completed and sold.  Rather, approval of an application indicates the Authority's desire to work with the applicant in the attempt to bring its issue to sale.

4)         In the event that the applicant institution's issue is sold, the applicant institution shall reimburse the financial advisor and bond counsel for their services rendered in accordance with compensation schedules approved by the Authority.  Such costs may be funded out of bond proceeds.  Such schedules are available upon request from the Executive Director.  Further, in the event that the applicant institution's issue is sold, the applicant institution shall be obligated to pay the Authority the Administrative Charge and Annual Fee referred to on page 2 of the Application Form.

(Source:  Recodified from 23 Ill. Adm. Code 2320.5, 2320.10, 2320.20 and 2320.30 at 31 Ill. Reg. 12104)