Reasons for Policy
This policy is to ensure compliance with the Internal Revenue Code and IRS regulations requiring that conduit borrowers, among others, retain records to support (i) the exemption taken by the holders of TEBs with respect to interest paid on the bonds, (ii) the information submitted to the IRS by the conduit borrower on TEB related returns and (iii) the conduit borrower’s reliance on safe harbors in the arbitrage regulations relating to investment of earnings on TEB proceeds.
Primary Guidance to which this Policy Responds
This policy primarily responds to the provisions of the Internal Revenue Code and Treasury Regulations governing document retention in connection with TEBs, as well as agreements the University has entered into with DASNY and other government agencies in connection with TEBs issued on behalf of the University.
Responsible University Offices/Officers
Office of the Treasurer
Office of the General Counsel
Who is Governed by This Policy
The Office of the Treasurer will notify the relevant schools and departments on an annual basis of their record retention responsibilities under this Policy.
This policy applies to all University employees, schools and departments involved in any stage or aspect of any TEB issuance on behalf of the University and/or management or use of TEB-financed facilities or projects, including but not limited to:
- Decision making prior to TEB issuance including with respect to identification of eligible projects and due diligence on environmental and tax aspects of projects
- Issuance of TEBS
- Use of TEB proceeds and timing of use
- Investing of TEB proceeds and arbitrage processes
- Use of Property financed by TEBs
- Recording, reporting or documenting use of proceed, arbitrage, return filings, private use and financial transactions
Who Should Know this Policy
All University employees described above should know this policy.