Procedure for Issuing Bonds Under the Industrial Development Corporations Act:

• By filing an application with the Authority, a request is made by the company for financing of a particular project.  An application fee may be charged by the Authority.
  
  

• After approving the company’s application, a “resolution of intent” stating the Authority’s willingness and intent to issue IRBs for the project, is adopted.
  
  

• Before the bonds can be issued, the Authority submits an application for allocation of funds to the Department of Economic Development.
  
  

• Legal documents necessary for the bond issue are then prepared.  These documents will be reviewed by the parties to the financing.
  
  

• A public hearing is set, at which time the Authority acquires the approval of the governing body or chief elected representative of the city or county where the project is located.
  
  

• The IRB is then sold by two basic methods, public offering or private placement.
  
  

• After an investment banker or other purchaser has agreed to purchase the bonds, the parties involved make final agreements about the bond issue and basic legal documents are drawn up.
  
  

• Numerous other closing documents are prepared.
  
  

• A pre-closing is held to make sure that all documents are in order and all procedures have been properly executed.
  
  

• At the closing, The Authority relinquishes the bonds to the purchaser in exchange for the purchase price.  The bond proceeds are then deposited into a fund for disbursement to pay for the costs of the project.
  
  

• The Department of Economic Development is informed the following business day after the bonds are issued, and a post-closing filing of IRS Form 8038 must be filed with the IRS within their stated time period.