Pub. 3 2013-2014 Issue 2

23 bonds, monitoring the bond document requirements and providing scheduled statements. Another basic document to the bond transaction is the Loan Agreement. The Issuer and the Charter School as the Borrower, enter into the Loan Agreement for the purpose of specifying the terms and conditions of the loan. The Issuer grants and assigns to the Trustee a security interest in the Loan Agreement for the benefit of the Bondholders. The Loan Agreement contains provisions addressing the application of the bond proceeds, revenues, loan pay- ments, maintenance of the facilities as well as reporting re- quirements. Pursuant to the Loan Agreement, the Trustee collects the loan payments and applies the funds to cover the scheduled loan interest and principal payments and cover costs such as insurance premiums and replacement and reserve funds. In accordance with the Loan Agreement, the Borrower agrees to maintain proper records and accounts of all of its operations. In the Loan Agreement there may be some financial reporting items to be provided to the Issuer and the Trustee which may include annual audited financial statements, quarterly unaudited financial statements, a copy of the annual budget approved by its governing board and a capital assessment plan. Additional reporting may include providing a copy of the monthly allotment memo from the Utah State Office of Education, board of directors meeting minutes, enrollment records and certifi- cations pertaining to compliance to the bond documents. As long as the bonds are outstanding, the Borrower covenants and agrees to manage the facilities to meet its obligations under the Loan Agreement. Some reporting items may be required to be disseminat- ed to the Municipal Securities Rulemaking Board (MSRB) through its repository, Electronic Municipal Market Ac- cess system (EMMA). A dissemination agent may be used to facilitate this process. As discussed, a Trustee is one of the parties to the financing team. With over 100 years in the Corporate Trust business, Zions Bank Corporate Trust is a premier, full-service Corporate Trust provider with administrators known for their expertise in handling all types of financing structures. In addition to acting as bond Trustee, we can also be appointed as a dissemination agent, escrow agent, custodian and paying agent. We have web-based platforms to offer customers 24/7 access, up-to-date information on account holdings and transactions, monthly online state- ments and the ability to download data and create custom- ized reports. Our system also allows for the retention of all your records for the life of your accounts. If I can be of assistance, please give me a call at (801) 844-7560. “We Haven’t Forgotten Who Keeps Us In Business” A D V E R T I S E R I N D E X Hogan Construction 2 801.952.7000 www.hoganconstruction.com ETS 3 801.758.7300 www.SimplifyMyIT.com Highmark 7 616.717.0484 patrick@highmarkschools.com Schoolhouse Development, LLC 11 801.278.0800 www.schooldev.us Piper Jaffray 14 612.303.1776 piperjaffray.com/charterschoolfinance The newsLINK Group, LLC 20 855.747.4003 www.thenewslinkgroup.com Red Apple Financial 23 801.394.4140 American Insurance & Investment Corp. 32 801.364.3434 www.american-ins.com Managing the Business of Charter Schools with the same passion as those who create them. 801-394-4140