Board Approval Process

After you submit an application for financing, it will be reviewed by the Board of Directors. Typically, the Board acts on a bond transaction twice, adopting an Inducement Resolution and a Financing Resolution at two separate Board meetings. Financings under the Small Borrower Program are reviewed by the Board only once.

1. Initial Board Review: CECFA produces a Project Summary that includes general information about the borrower and informs the Board of Directors of the nature of the proposed financing.

The Inducement Resolution declares the preliminary intent of the CECFA Board to issue bonds to finance the project, subject to completion of all legal documents.

A representative of the borrower is required to attend and make a presentation at this Board meeting. The presentation should include:

• A brief history of the borrower and its operations
• A description of the facilities which would be financed through the proposed borrowing
• A brief discussion of the need for those facilities

It is not necessary to bring handouts or media presentations unless they would clarify the presentation. A representative of the investment banking firm involved in the financing, as well as bond counsel, should also attend the meeting, but may participate by telephone if travel from out-of-state would be required.

If the proposed financing is part of a financing program with a term sheet, type of credit enhancement and form bond documents previously approved by the Board of Directors, the borrower’s representative may participate by telephone if travel from out-of-state would be required.

2. Preliminary Agreement: After approval of the Inducement Resolution, the borrower and CECFA execute a Preliminary Agreement.  The Preliminary Agreement describes the responsibilities and fees of CECFA. A typical form of that agreement can be found here. The agreement must be signed and returned in order for CECFA to continue working on the transaction.

3. TEFRA Hearing: A TEFRA hearing should be completed and the State Treasurer’s TEFRA approval be signed prior to the Board’s final review and approval.

TEFRA hearings are held at the CECFA office. To schedule a hearing, Bond Counsel should e-mail the Executive Director with a suggested date and time. On the day of the hearing, Bond Counsel should e-mail the Executive Director the report of hearing with instructions as to the number of copies they would like. At the present time, the Colorado State Treasurer signs the TEFRA approval on behalf of the Governor. You should anticipate at least a two-week turnaround time for that signature.

4. Final Review & Approval: The Board will entertain a final Financing Resolution only after all documents relating to the transaction are substantially complete.

In order to be included in the agenda, draft resolutions for Board action prepared by bond counsel must be received by the Monday following the deadline for application submittal. E-mail transmittal is preferred. See the board calendar for deadline information.

5. Document Execution: Once the Financing Resolution is approved, the closing documents can be executed. Closings should be coordinated through the Executive Director.

6. “One-Step” Borrowings. In unusual circumstances, the Board may allow financing with only one approval. Please check with staff if you seek approval on this basis. As noted above, Small Borrowers are only required to obtain one approval of the Board.

Board Meeting Dates - 2010

Wednesday, January 27, 2010

Wednesday, February 24, 2010

Wednesday, March 24, 2010

Wednesday, April 28, 2010 (to be held at the Warwick Hotel, 1776 Grant Street)

Wednesday, May 26, 2010

Wednesday, June 23, 2010

Wednesday, July 28, 2010                                   

Wednesday, August 25, 2010

Friday, September 24, 2010 (to be held in Durango)

Wednesday, October 27, 2010

Wednesday, December 8, 2010

Application Deadlines - 2010

Thursday, January 14, 2010

Thursday, February 11, 2010

Thursday, March 11, 2010

Thursday, April 15, 2010

Thursday, May 13, 2010

Thursday, June 10, 2010

Thursday, July 15, 2010

Thursday, August 12, 2010

Thursday, September 9, 2010

Thursday, October 14, 2010

Wednesday, November 24, 2010

Recent Agendas

March 2010

February 2010

January 2010

December 2009

October 2009

September 2009

August 2009

July 2009

June 2009

May 2009

March 2009

February 2009

January 2009