§1405.4. Costs of issuance and reporting requirements

            A. Bonds, notes, or other issuances of indebtedness of any issuer required by the constitution or laws of Louisiana to be sold or approved by the State Bond Commission shall not be sold or approved unless and until the estimated costs of issuance have been presented to the issuer in a written report compiled by bond counsel in a public sale of securities or by bond counsel with the assistance of the underwriter in a private sale of securities.

            B. No later than forty-five days after the closing and delivery of bonds the issuer or its representative shall submit to the State Bond Commission a final report with respect to such issue.

            C. The final report shall be in a form provided by the State Bond Commission and shall provide information with respect to the final size of the issue, maturities and interest rates, and all costs of issuance including underwriters' discount, legal fees, financial advisory fees, consultant or other advisory fees, paying agent fees, registrar fees, fees payable for duties related to the issuance and payment of the securities, remarketing fees, and fees associated with liquidity enhancement devices, credit enhancement devices, interest rate swaps, or derivative products, paid from bond proceeds or other sources. Such report shall also provide information with regard to the specific role that an individual or company performed for such fee. Annual fees or ongoing costs may be reported in a fixed or parameter mode.

            D. The report shall list:

            (1) The costs of issuance by individual item as submitted to and approved by the State Bond Commission.

            (2) The actual costs of issuance by individual item.

            (3) The variance, if any, between the approved and actual costs of issuance by individual item, dollar amount and percentage.

            E.(1) If the total actual costs of issuance exceed the total approved costs of issuance or the actual costs of issuance in any line item exceed the approved costs of issuance by a variance of ten percent or more, the issuer shall provide a written explanation to the State Bond Commission and may be required to appear at a meeting thereof for purposes of further explanation.

            (2) If the issuer is advised of an increase pursuant to Paragraph (1) of this Subsection and the increased costs of issuance can be timely submitted for approval, the increased costs of issuance shall be resubmitted to the State Bond Commission for approval prior to closing.

            F. In addition to the other reporting requirements set forth in this Section, any fees which are associated with the bonds and which are incurred after the forty-five day period following issuance and delivery of the bonds, including but not limited to legal, consulting, and financial advisory fees, and fees associated with credit enhancement or derivative projects obtained post-closing, shall be estimated and presented to the issuer and the State Bond Commission. A final report of the actual fees paid shall be furnished to the issuer and the State Bond Commission within forty-five days of the payment.

            G. A copy of any report required by this Section shall be filed in the official records of the issuer.

            H. Repealed by Acts 2022, No. 260, §2, eff. July 1, 2022.

            Acts 2008, No. 790, §1; Acts 2022, No. 260, §§1, 2, eff. July 1, 2022.