Last Update: 3/5/14

Chapter 210-02 WAC

SCHOOL BOND GUARANTEE PROGRAM

WAC Sections

GENERAL
Definitions.
Application for certificate of eligibility.
Review of application for certificate of eligibility.
Issuance of certificate of eligibility.
Denial of eligibility/determination of ineligibility.
Determination of fiscal solvency.
Information to be provided to the state treasurer before issuance of a final certificate.
Reference to guarantee in school district bond documents.
Ratings.
Notification by district of insufficient funds.
County treasurer notice to state treasurer of insufficient funds.
Paying agent notice to state treasurer of insufficient funds.
Repayment to the state by school districts.
Interest on school district obligations to state.
Penalty for state payment under guarantee program.
Other costs.
Failure to comply with this chapter.
Exceptions.
DISPOSITION OF SECTIONS FORMERLY CODIFIED IN THIS CHAPTER
210-02-070
Guarantee final upon issuance. [Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-070, filed 5/9/00, effective 6/9/00.] Repealed by WSR 14-06-107, filed 3/5/14, effective 4/5/14. Statutory Authority: RCW 39.98.040.
210-02-100
County assessor to levy taxes. [Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-100, filed 5/9/00, effective 6/9/00.] Repealed by WSR 14-06-107, filed 3/5/14, effective 4/5/14. Statutory Authority: RCW 39.98.040.
210-02-110
County treasurer to collect taxes and transfer money to paying agent. [Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-110, filed 5/9/00, effective 6/9/00.] Repealed by WSR 14-06-107, filed 3/5/14, effective 4/5/14. Statutory Authority: RCW 39.98.040.
210-02-140
Payment by the state treasurer for bonds issued under the act. [Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-140, filed 5/9/00, effective 6/9/00.] Repealed by WSR 14-06-107, filed 3/5/14, effective 4/5/14. Statutory Authority: RCW 39.98.040.
210-02-190
Restructure/revision of tax collection. [Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-190, filed 5/9/00, effective 6/9/00.] Repealed by WSR 14-06-107, filed 3/5/14, effective 4/5/14. Statutory Authority: RCW 39.98.040.


210-02-010
Definitions.

For purposes of this rule, the following definitions shall apply:
"Act" means the Washington State School District Credit Enhancement Program Act, pursuant to chapter 39.98 RCW.
"Application" means an application requesting the state treasurer to issue a certificate of eligibility pursuant to RCW 39.98.040.
"Authorized district official" means any individual designated as such by resolution provided for in WAC 210-02-020.
"Bond" means any voted general obligation bond issued by a school district holding a certificate issued pursuant to the act, and any general obligation bond issued by a school district holding a certificate issued pursuant to the act to refund outstanding voted general obligation bonds of that school district.
"Capital projects fund" means the fund created pursuant to RCW 28A.320.330.
"Certificate of eligibility" means a certificate issued by the state treasurer pursuant to RCW 39.98.040.
"County assessor" means the county assessor(s) in the county or counties in which the requesting school district is located.
"County treasurer" means the county treasurer of the requesting school district.
"Guarantee program" means the Washington state school district credit enhancement program established by the act.
"Nationally recognized bond counsel firm" means a bond counsel firm listed in the most recent publication of The Bond Buyer's Municipal Market Place.
"Paying agent" means the paying agent selected, from time to time, for a bond issue pursuant to state law.
"School district" or "district" means any school district or its successor under the laws of the state.
"State" means the state of Washington.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-010, filed 3/5/14, effective 4/5/14. Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-010, filed 5/9/00, effective 6/9/00.]



210-02-020
Application for certificate of eligibility.

School districts may apply for a certificate of eligibility at any time during the year by filing the application with the state treasurer. Such an application, however, must be submitted to the state treasurer no less than thirty days prior to sale of bonds for which the guarantee, if granted, will apply. Applications, and all other written communications pursuant to the guarantee program, shall be addressed to the School Bond Guarantee Program, Office of the State Treasurer, Legislative Building, 2nd Floor, P.O. Box 40200, Olympia, Washington 98504-0200. The application shall include:
(1) The name, county, and district number (if applicable) of the requesting school district;
(2) The name of the authorized district official for the requesting school district;
(3) The name of the underwriter, if known, financial advisor (if any) and bond counsel assigned to the financing of the requesting school district to which the guarantee will apply;
(4) The mailing address, phone number, fax number, and email address (if applicable) of the requesting school district;
(5) A copy of the district's ballot proposition resolution, showing details of the special election (date, amount, ballot title) at which the bonds were approved by the voters;
(6) The not-to-exceed amount the district is currently requesting be guaranteed pursuant to its application;
(7) An allocation report in the form provided by the state treasurer, identifying, by ballot issue, the principal amount of any bonds previously issued pursuant to the ballot proposition resolution(s) authorizing the bonds, plus any net original issue premium associated with such previously issued bonds that was deposited in the capital projects fund and any remaining authority to issue bonds pursuant to such ballot proposition resolution(s);
(8) A copy of the resolution passed by the school district's board of directors (which may be the same resolution as the district's ballot proposition resolution) authorizing the application for a certificate of eligibility;
(9) A certificate signed by an authorized district official:
(a) Stating whether the school district has any bonds, the principal of or interest on which has been paid by the state under the act, and for which there remain outstanding any payment obligations of the district to the state;
(b) Stating that the school district is, and will remain, in compliance with these administrative rules as currently set forth or later amended; and
(c) Attesting to the accuracy and completeness of the materials provided.
(10) A nonrefundable application processing fee of one hundred dollars; and
(11) Any additional materials that may be required by the office of the state treasurer in support of the application for participation in the guarantee program.
In addition to the above requirements, any application that includes bonds to be refunded must also provide a copy of the ballot resolution(s) relating to each series of bonds to be refunded.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-020, filed 3/5/14, effective 4/5/14. Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-020, filed 5/9/00, effective 6/9/00.]



210-02-030
Review of application for certificate of eligibility.

Upon receipt of an application for a certificate of eligibility, the state treasurer will determine whether all items listed in WAC 210-02-020 have been provided and will notify the district no later than five business days after receipt if the application is incomplete.
In determining the school district's eligibility under the guarantee program, the office of the state treasurer may request additional information from the school district, as well as from any other person or entity.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-030, filed 3/5/14, effective 4/5/14. Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-030, filed 5/9/00, effective 6/9/00.]



210-02-040
Issuance of certificate of eligibility.

Upon determining that a school district is eligible to participate in the guarantee program, the state treasurer will issue a certificate of eligibility to the school district. The certificate of eligibility shall:
(1) Evidence the school district's immediate qualification for the guarantee program;
(2) Be valid for one year from the date of its issuance; and
(3) Be valid only for those bonds approved under the certified special election(s) specified by the school district in its application for a certificate of eligibility.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-040, filed 3/5/14, effective 4/5/14. Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-040, filed 5/9/00, effective 6/9/00.]



210-02-050
Denial of eligibility/determination of ineligibility.

The state treasurer may deny a school district's application for a certificate of eligibility and issue a determination of ineligibility pursuant to RCW 39.98.040, if:
(1) The school district fails to meet the provisions outlined in the act or any of the requirements outlined in these rules; or
(2) The state has ever paid, pursuant to the guarantee program, any principal of or interest on any of the school district's bonds; and
(a) The associated payment obligations of the district to the state are not satisfied; or
(b) The state treasurer and the state superintendent of public instruction are unable to certify, in writing, that the school district is fiscally solvent.
The state treasurer may deny a district's application at his or her sole discretion.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-050, filed 3/5/14, effective 4/5/14. Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-050, filed 5/9/00, effective 6/9/00.]



210-02-055
Determination of fiscal solvency.

"Fiscally solvent" when used for the purposes of any certification required by the act and these rules with respect to the financial condition of a school district seeking to participate in the guarantee program, means that, in the opinion of the person making such determination after giving due consideration to:
(1) The principal and interest requirements of all outstanding voted general obligation bonds of the school district and of all outstanding bonds issued to refund voted general obligation bonds of the school district;
(2) The school district's past record of collecting voter-approved excess property taxes and reasonable expectations concerning future collections of voter-approved excess property taxes as required to meet those principal and interest requirements; and
(3) Such additional financial circumstances, if any, of the school district that such person considers to be material, it is reasonably expected that the school district will be able to satisfy all principal and interest requirements of bonds guaranteed and proposed to be guaranteed by the state under the guarantee program.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-055, filed 3/5/14, effective 4/5/14.]



210-02-060
Information to be provided to the state treasurer before issuance of a final certificate.

The school district shall provide a copy of the final official statement for the bonds to which the guarantee was applied, promptly upon its publication. The school district shall provide to the state treasurer at the time of closing:
(1) A copy of the bond resolution as adopted by the board of directors of the school district, or a bond purchase agreement that states the final terms of the bonds;
(2) An allocation report, identifying by ballot issue, the principal amount of any bonds issued pursuant to the ballot proposition resolution(s) authorizing the bonds, plus any net original issue premium associated with such issued bonds that was deposited in the capital projects fund and any remaining authority to issue bonds pursuant to the ballot proposition resolution(s); and
(3) A letter addressed to the state treasurer signed by the school district's nationally recognized bond counsel firm stating that the state treasurer may rely upon such firm's approving legal opinion with respect to the bonds as if that opinion were addressed to the state treasurer.
If all of the above information has been received, on the date of the bond closing, the state treasurer will provide a certificate evidencing the state's guarantee for use by the school district that reflects its compliance with these requirements.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-060, filed 3/5/14, effective 4/5/14. Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-060, filed 5/9/00, effective 6/9/00.]



210-02-080
Reference to guarantee in school district bond documents.

School districts that issue bonds under a certificate of eligibility, shall evidence the state's guarantee of the school district's bonds in a form to be provided by the state treasurer and placed:
(1) On the cover of the school district's preliminary official statement(s) and official statement(s), or other offering document(s), for the applicable bond(s);
(2) On the face of the school district's applicable bond(s); and
(3) As an appendix within the official statement(s), or other offering document(s), for the applicable bond(s).
The state treasurer will provide, and any school district relying on the state's guarantee must use the description of the state's guarantee in the school district's offering document. The description must be used in its entirety and may not be modified or amended.
Any modification or amendment may result in a denial of future applications for eligibility by the district. It is incumbent upon each district to check the state treasurer's web site for the most current description.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-080, filed 3/5/14, effective 4/5/14. Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-080, filed 5/9/00, effective 6/9/00.]



210-02-090
Ratings.

The office of the state treasurer will undertake to have the Washington school bond guarantee program rated by at least one of the following: Standard & Poor's, Moody's Investors Service, or Fitch Ratings. Any school district proposing to issue bonds under the guarantee program may:
(1) Engage, at its own expense, one or more of the rating agencies to apply the rating of the guarantee program to its bonds; and
(2) At its discretion, and at its own expense, choose to obtain an underlying rating on the bonds.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-090, filed 3/5/14, effective 4/5/14. Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-090, filed 5/9/00, effective 6/9/00.]



210-02-115
Notification by district of insufficient funds.

At least seven business days before a scheduled debt service payment is due, a district that has issued bonds under a certificate of eligibility must confirm that sufficient funds will be available to make the scheduled debt service payment. If the district determines that insufficient funds are available to make the scheduled debt service payment, the district must notify the office of the state treasurer at least seven business days prior to its due date. Such notice shall be made to the office of the state treasurer as follows:
(1) By telephone: 360-902-9000; and
(2) By email: SchoolBondGuarantee@tre.wa.gov.
Failure to make this notification may result in a denial of future applications for eligibility.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-115, filed 3/5/14, effective 4/5/14.]



210-02-120
County treasurer notice to state treasurer of insufficient funds.

Upon determining that a timely transfer of all required funds to the paying agent for scheduled debt service payments on guaranteed bonds cannot be made, the county treasurer shall immediately provide notice to the state treasurer and to the paying agent pursuant to RCW 39.98.050. Such notice shall be made to the office of the state treasurer as follows:
(1) By telephone: 360-902-9000; and
(2) By facsimile: 360-902-9045 or by email: SchoolBondGuarantee@tre.wa.gov; and
(3) By first class mail: Attn: School Bond Guarantee Program, Office of the State Treasurer, Legislative Building, 2nd Floor, P.O. Box 40200, Olympia, Washington 98504-0200.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-120, filed 3/5/14, effective 4/5/14. Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-120, filed 5/9/00, effective 6/9/00.]



210-02-130
Paying agent notice to state treasurer of insufficient funds.

If sufficient funds are not transferred to the paying agent at the time or times required to make scheduled debt service payments on guaranteed bonds of a school district, the paying agent shall immediately notify the state treasurer as follows:
(1) By telephone: 360-902-9000;
(2) By facsimile: 360-902-9045 or by email: SchoolBondGuarantee@tre.wa.gov; and
(3) By first class mail: Attn: School Bond Guarantee Program, Office of the State Treasurer, Legislative Building, 2nd Floor, P.O. Box 40200, Olympia, Washington 98504-0200.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-130, filed 3/5/14, effective 4/5/14. Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-130, filed 5/9/00, effective 6/9/00.]



210-02-150
Repayment to the state by school districts.

Each school district is responsible for paying in full the principal of and interest on its bonds guaranteed by the state under the guarantee program. The state treasurer shall recover from the district any funds paid by the state on behalf of a school district under the guarantee program along with any interest or penalties by any means authorized pursuant to the act or any other method permitted by law.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-150, filed 3/5/14, effective 4/5/14. Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-150, filed 5/9/00, effective 6/9/00.]



210-02-160
Interest on school district obligations to state.

The state treasurer may charge interest in connection with the recovery of funds under chapter 39.98 RCW. Any interest charged will be in a manner consistent with chapter 39.98 RCW. Interest will be determined after taking certain factors into account such as: The circumstances of any prior draws by the district on the state, market interest and penalty rates, and the cost of funds or opportunity cost of investments.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-160, filed 3/5/14, effective 4/5/14. Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-160, filed 5/9/00, effective 6/9/00.]



210-02-170
Penalty for state payment under guarantee program.

The state treasurer may, after taking into account the circumstances giving rise to the failure of the district to make payments on its bonds in a timely manner, impose a penalty consistent with RCW 39.98.060.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-170, filed 3/5/14, effective 4/5/14. Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-170, filed 5/9/00, effective 6/9/00.]



210-02-180
Other costs.

The district shall pay the fees, expenses and costs incurred by the state in recovering amounts paid under the guarantee.
[Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-180, filed 5/9/00, effective 6/9/00.]



210-02-195
Failure to comply with this chapter.

Failure to comply with the provisions of this chapter may result in denial of a future application for eligibility under the guarantee program.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-195, filed 3/5/14, effective 4/5/14.]



210-02-200
Exceptions.

The state treasurer may, in his or her discretion, waive any or all provisions of this chapter to the extent provided by law.
[Statutory Authority: RCW 39.98.040. WSR 14-06-107, § 210-02-200, filed 3/5/14, effective 4/5/14. Statutory Authority: Chapter 39.98 RCW. WSR 00-11-023, § 210-02-200, filed 5/9/00, effective 6/9/00.]
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