|
|
|
| Borrower contacts NJEFA A representative of a college or university calls NJEFA to discuss a project financing need and whether the institution is eligible for financing through the Authority. |
| Determine method of sale NJEFA professional staff will make a determination, based on the particular needs of the institution of higher education, as to which method of sale is best, a negotiated sale or a competitive sale.
A negotiated sale is one in which the Authority selects an underwriter to negotiate the sale of the bonds. A competitive sale is one in which the bonds are sold via an open bid process. |
| Negotiated Sale - NJEFA adopts E026 resolution. NJEFA selects sr. manager & bond counsel When a negotiated sale is agreed upon, the NJEFA Board meets to adopt an EO26 Resolution which allows the sale of the bonds through a negotiated sale directly to an underwriter. Once the EO26 resolution is approved, NJEFA selects a Senior Manager from the approved pool to work with the institution and NJEFA on the transaction. Bond Counsel is appointed by the Authority for all sales conducted by the Authority. |
| Competitive Sale - NJEFA selects bond counsel |
| Prepare bond resolutions, documents, and Preliminary Official Statements (P.O.S.). Credit packages mailed to rating agencies and/or bond insurers. Working together, NJEFA staff and the professionals (Bond Counsel and Financial Advisors) prepare the Bond Resolutions and other documents, as well as the Preliminary Official Statement (P.O.S.). Credit packages are prepared and mailed to Rating Agencies and/or Bond Insurers for their review. Ratings and/or committments for bond insurance are issued. |
| Adoption of Bond Resolution, authorizing the bond sale. Conduct TEFRA hearing if applicable. The NJEFA Board meets monthly to adopt the necessary Bond Resolutions, authorize the bond sale, and if required conduct a TEFRA hearing. |
| Governor's veto period runs for 10 days. The minutes of the Board Meeting, along with copies of the resolution, are forwarded to the Governor for review during a statutory gubernatorial veto period which runs for 10 business days. |
| Negotiated Sale - Print and Mail P.O.S. Market and price bonds & sign purchase contract. Upon completion of the Governor's veto period, NJEFA proceeds with the sale of the bonds. The final P.O.S. is printed and mailed to potential buyers of the bonds. For a negotiated sale, the Authority negotiates directly with the Senior Manager for the issue. The bond purchase contract is executed upon completion of the sale. |
| Competitive Sale - Advertise for bids. Print & mail P.O.S. and bid form. Accept bids and award bonds. In a competitive sale, the Authority advertises for bids, prints and mails the P.O.S. and bid form, receives bids, and awards the bonds to the successful bidder. |
| Close bond issue The final step in the process is called "closing." At closing, documents are executed and the proceeds are made available to the institution. |
|
