Village of Bannockburn, IL Recordkeeping for Issuance of Bonds and Other Obligations

The Village Manager of the Village is designated as the keeper of all records of the Village with respect to the obligations, and such officer shall report to the Village Board at least annually that he/she has all of the required records in his/her possession, or is taking appropriate action to obtain or recover such records.

§ 28-16 Records to be maintained.

For each issue of obligations, the compliance officer shall receive, and shall keep and maintain or cause to be kept and maintained, a true, correct and complete counterpart of each document and agreement delivered in connection with the authorization and issuance of the obligations, including, without limitation:

The proceedings of the Village authorizing the obligations;

Any offering document with respect to the offer and sale of the obligations;

Any legal opinions with respect to the obligations delivered by any lawyers; and

All written representations of any person delivered in connection with the authorization, issuance and initial sale of the obligations.

§ 28-17 Arbitrage rebate liability.

The compliance officer shall review the agreements of the Village with respect to the obligations and shall prepare, or cause to be prepared by a qualified consultant, and present to the Village Board a report stating whether or not the Village has any rebate liability to the United States Treasury, and setting forth any applicable exemptions that the obligations may have from rebate liability. Such report shall be updated annually and delivered to the Village Board. Such report may be based in part on an opinion or opinions of nationally recognized bond counsel addressed to the Village.

The compliance officer shall review the records related to the obligations and shall determine what requirements the Village must meet in order to maintain the tax exemption of interest paid on the tax-exempt obligations and the qualification of the Build America Bonds as "Build America Bonds."

The compliance officer shall then prepare a list of the contracts, requisitions, invoices, receipts and other information that may be needed in order to establish that:

(1)

The interest paid on the tax-exempt obligations is entitled to be excluded from "gross income" for federal income tax purposes; and

(2)

The Build America Bonds qualify as "Build America Bonds."

Notwithstanding any other policy of the Village, such retained records shall be kept for as long as the obligations relating to such records (and any obligations issued to refund those obligations) are outstanding, plus three years, and shall include the following at a minimum:

(1)

Complete copies of the bond transcripts delivered when any issue of obligations is initially issued and sold;

(2)

Copies of account statements showing the disbursements of all bond proceeds for their intended purposes;

(3)

Copies of account statements showing all investment activity of any and all accounts in which the proceeds of any issue of obligations have been held;

(4)

Copies of all bid requests and bid responses used in the acquisition of any special investments used for the proceeds of any tax-exempt or Build America Bonds, including any swaps, swaptions, or other financial derivatives entered into with respect to any tax-exempt obligations or Build America Bonds in order to establish that such instruments were purchased at fair market value;

(5)

Copies of any subscriptions to the United States Treasury for the purchase of State and Local Government Series (SLGS) obligations;

(6)

Any calculations of liability for arbitrage rebate that is or may become due with respect to any issue of tax-exempt obligations or Build America Bonds, and any calculations prepared to show that no arbitrage rebate is due, together, if applicable, with account statements or cancelled checks showing the payment of any rebate amounts to the United States Treasury, together with any applicable IRS Form 8038-T; and

(7)

Copies of all contracts of the Village, including any leases, with respect to the use of any property owned by the Village and acquired or financed with the proceeds of tax-exempt obligations or Build America Bonds, any part of which property is used by a private person at any time when such obligations are or have been outstanding.

§ 28-19 IRS examination.

If the Internal Revenue Service (IRS) commences an examination of any obligations, the compliance officer shall inform the Village Board of such event, and is authorized to respond to inquiries of the IRS, and to hire outside, independent professional counsel to assist in the response to the examination.