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Le Sueur County, Minnesota Post-Issuance Debt Compliance Policy

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Le Sueur County, Minnesota Post-Issuance Debt Compliance Policy Le Sueur County, Minnesota Post-Issuance Debt Compliance Policy The Board of Commissioners (the “Board”) of Le Sueur County, Minnesota (the “County”) has chosen, by policy, to take steps to help ensure that all obligations will be in compliance with all applicable federal regulations. This policy may be amended, as necessary, in the future. IRS Background The Internal Revenue Service (IRS) is responsible for enforcing compliance with the Internal Revenue Code (the “Code”) and regulations promulgated thereunder (“Treasury Regulations”) governing certain obligations (for example: tax-exempt obligations, Build America Bonds, Recovery Zone Development Bonds and various “Tax Credit” Bonds). The IRS encourages issuers and beneficiaries of these obligations to adopt and implement a post-issuance debt compliance policy and procedures to safeguard against post-issuance violations. SEC Background T h e S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n ( S E C ) i s r e s p o n s i b l e f o r e n f o r c i n g c o m p l i a n c e w i t h t h e S E C R u l e 1 5 c 2 - 1 2 ( t h e “ R u l e ” ) . G o v e r n m e n t s o r g o v e r n m e n t a l e n t i t i e s i s s u i n g o b l i g a t i o n s g e n e r a l l y h a v e a r e q u i r e m e n t t o m e e t s p e c i f i c c o n t i n u i n g d i s c l o s u r e s t a n d a r d s s e t f o r t h i n c o n t i n u i n g d i s c l o s u r e a g r e e m e n t s ( “ C D A ” ) . U n l e s s t h e i s s u e r , o b l i g a t e d p e r s o n , o r a s p e c i f i c o b l i g a t i o n i s e x e m p t f r o m c o m p l i a n c e w i t h C D A s , t h e s e a g r e e m e n t s a r e e n t e r e d i n t o a t t h e t i m e o f o b l i g a t i o n i s s u a n c e t o e n a b l e u n d e r w r i t e r ( s ) t o c o m p l y w i t h t h e R u l e . T h e R u l e s e t s f o r t h c e r t a i n o b l i g a t i o n s o f ( i ) u n d e r w r i t e r s t o r e c e i v e , r e v i e w a n d d i s s e m i n a t e o f f i c i a l s t a t e m e n t s p r e p a r e d b y i s s u e r s o f m o s t p r i m a r y o f f e r i n g s o f m u n i c i p a l s e c u r i t i e s , ( i i ) u n d e r w r i t e r s t o o b t a i n C D A s f r o m i s s u e r s a n d o t h e r o b l i g a t e d p e r s o n s t o p r o v i d e m a t e r i a l e v e n t d i s c l o s u r e a n d a n n u a l f i n a n c i a l i n f o r m a t i o n o n a c o n t i n u i n g b a s i s , a n d ( i i i ) b r o k e r - d e a l e r s t o h a v e a c c e s s t o s u c h c o n t i n u i n g d i s c l o s u r e i n o r d e r t o m a k e r e c o m m e n d a t i o n s o f m u n i c i p a l s e c u r i t i e s t r a n s a c t i o n s i n t h e s e c o n d a r y m a r k e t . The SEC encourages issuers and beneficiaries adopt and implement a post-issuance debt compliance policy and procedures to safeguard against Rule violations. W h e n o b l i g a t i o n s a r e i s s u e d , t h e C D A c o m m i t s t h e i s s u e r o r o b l i g a t e d p e r s o n t o p r o v i d e c e r t a i n a n n u a l f i n a n c i a l i n f o r m a t i o n a n d m a t e r i a l e v e n t n o t i c e s t o t h e p u b l i c . I s s u e r s a n d o t h e r o b l i g a t e d p e r s o n s m a y a l s o c h o o s e t o p r o v i d e p e r i o d i c , v o l u n t a r y f i n a n c i a l i n f o r m a t i o n a n d f i l i n g s t o i n v e s t o r s i n a d d i t i o n t o f u l f i l l i n g t h e s p e c i f i c r e s p o n s i b i l i t i e s d e l i n e a t e d i n t h e i r C D A . I t i s i m p o r t a n t t o n o t e t h a t i s s u e r s a n d o t h e r o b l i g a t e d p e r s o n s s h o u l d n o t g i v e a n y o n e i n v e s t o r c e r t a i n i n f o r m a t i o n t h a t i s n o t r e a d i l y a v a i l a b l e t o a l l m a r k e t p a r t i c i p a n t s b y d i s s e m i n a t i n g i n f o r m a t i o n t o t h e m a r k e t p l a c e , a t l a r g e . I s s u e r s a n d o t h e r o b l i g a t e d p e r s o n s s h o u l d b e a w a r e t h a t a n y d i s c l o s u r e a c t i v i t i e s d e t e r m i n e d t o b e “ c o m m u n i c a t i n g t o t h e m a r k e t ” c a n b e s u b j e c t t o r e g u l a t o r y s c r u t i n y .
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