1.4 Definitions

“State” means the State of Colorado.

1.11	Arbitrage Compliance

The State Treasurer shall comply with the applicable arbitrage regulations mandated by the Internal Revenue Code, including but not limited to, regulations regarding timely filings.  For State Financial Obligations, the State Treasurer is responsible for the following:

A.	The direction of investments related to proceeds of the issuance or incurrence of Financial Obligations will be undertaken by the State Treasurer in accordance with applicable State law and, if applicable, the State Treasurer’s Investment Policy.

B.	The State Treasurer shall maintain separate accounts by source of funds and record pro rata interest income of any commingled funds used to invest the proceeds of  Financial Obligations, on a monthly basis.   

C.	Balances in project accounts shall be monitored by the State Treasurer to document the spending and allocation of the proceeds of Financial Obligations.

D.	The State Treasurer shall perform rebate computations until Financial Obligations are paid in full, in accordance with Internal Revenue Code regulations.   

E.	If applicable, the State Treasurer, may seek special tax counsel to opine on arbitrage regulations, and may employ arbitrage specialists as necessary to complete the required computations.

1.12	Disclosure and Continuing Disclosure

A.	The State Treasurer is responsible for  disclosure responsibilities under the continuing disclosure undertakings of State Financial Obligations.  The State Treasurer will make reasonable efforts to assist underwriters in their efforts to comply with SEC Rule 15c2-12 and the various MSRB rules pertaining to underwriters. 

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B.	Consistent with any continuing disclosure undertakings executed by the State Treasurer, the State Treasurer will file a copy of the State’s CAFR, and other information the State Treasurer deems pertinent or is required to be filed under any continuing disclosure undertakings and will be disseminated to the market in a timely manner through www.emma.msrb.org or such successor as the SEC or MSRB may designate.

C.	The State Treasurer implements the following post-issuance compliance procedures, to ensure each Financial Obligation complies with state and federal law and the financial covenants made by the State in the related financing documents governing the issuance.  The State Treasurer may request information from the related State Agency including the following:

1.	Tax Compliance.  Upon the advice of tax or bond counsel, information required by the Internal Revenue Service for post-issuance compliance procedures of the issuance or incurrence of a particular type of Financial Obligation such as Qualified School Construction Bonds.  
2.	Private Use.  Information necessary to monitor and take corrective action to comply with Internal Revenue Code requirements restricting the private use of facilities constructed with tax-exempt proceeds.
3.	State Law Compliance.  Documentation to ensure compliance with State law governing lease purchase financing that requires annual appropriation and renewal of a lease. 
4.	Financial Covenants.  Information or documentation to ensure compliance with the covenants made by the State in the related financing documents requiring insurance and record retention.
5.	Reporting Covenants.  Information and documentation to ensure compliance with reporting requirements pursuant to documentation with providers of credit enhancement and/or liquidity support or continuing disclosure agreements.