APPENDIX E
SAMPLERESOLUTION1
RESOLUTIONAPPROVING ANDAUTHORIZING THEUNDERTAKING AND IMPLEMENTATIONOFAPROJECT2 CONSISTINGOF[ ]AND AUTHORIZING THEFINANCING OFALLORAPORTIONOF THE PROJECTTHROUGHPROGRAM(S)3MADEAVAILABLEBYTHE STATEOF NEWJERSEYFORNEWJERSEY INSTITUTIONSOFHIGHEREDUCATION ANDOTHERAVAILABLEFUNDINGSOURCES;APPROVING AND AUTHORIZINGTHEFORMOFTHEAPPLICATION4 TOTHESECRETARY OFHIGHEREDUCATIONFORPARTICIPATIONINSUCHPROGRAM[(S)] ASARE APPLICABLE TO THE PROJECTSWITH SUCH CHANGESASARE APPROVEDBYTHEOFFICERSOFTHEINSTITUTION DESIGNATED HEREINANDTHE SUBMISSIONOF THEAPPLICATIONTOTHE SECRETARYOFHIGHEREDUCATION;APPROVING ANDAUTHORIZING THEEXECUTIONANDDELIVERYOF ANYANDALLAGREEMENTSIN CONNECTION WITHUNDERTAKING, IMPLEMENTINGANDFINANCING THEPROJECTSIN THEFORM(S) APPROVEDBYTHEOFFICERSOF THE INSTITUTION EXECUTING SUCH AGREEMENT(S);ANDDESIGNATING ANDAUTHORIZINGTHE OFFICERSOFTHEINSTITUTION TOTAKETHE AFOREMENTIONEDACTIONSAND TO TAKEANY ANDALLSUCHOTHER ACTIONSDEEMEDNECESSARYORDESIRABLETO UNDERTAKE, IMPLEMENTANDFINANCE THEPROJECT(S)
WHEREAS:TheBoardofTrustees(the“Board”)of[nameoftheInstitution] (the “Institution”) desirestoapprove the undertaking, implementation and financing of a project (the “Project”) consistingof[insert description ofproject]; and
1This sample resolution is intended to provideaguideline forinstitutions to utilizein draftingaresolution or resolutions to authorize applications for funds pursuant to theGO Bond Actand/orCIF.
2Thesample resolution assumes that theinstitutionwill be authorizingoneproject which will bedescribed fullyinthe resolution bydescribingvariousaspects oftheproject. If theinstitution has morethan oneproject, theinstitution mayeithermake appropriate changes to theresolution to reflect that oruseaseparateresolution.
3Different components ofaProject maybeeligiblefor fundingundermorethan one
Program.
4Ifan institution has morethan oneproject, aseparate application must besubmitted for each project even iftheinstitution intends to request funding from morethan one Program foraspecificproject.
WHEREAS:TheBoarddesirestoapprovetheaggregatecostsoftheProject paid and or financed through all sources in an amount not to exceed $ ; and
WHEREAS:The Boarddesirestofinance allor a portionof the Projectthrough oneormoreof thehereinafterdefinedProgramsmadeavailable bytheStateofNew Jersey(the “State”) forcertainprojects ofNew Jerseyinstitutions ofhigher education (the"Programs"); and
WHEREAS:TheProgramsaretheBuildingOurFutureBondAct,(P.L.2012, c.41(the"GOBondAct")andthe HigherEducation Capital Improvement FundAct, N.J.S.A. 18A:72A-72 et seq. ("CIF"); and
WHEREAS:TheBoardhasdeterminedthattheProjectwillassistinserving the needs ofits students andprovidingabenefit to theInstitution; and
WHEREAS:TheBoarddesirestoapprovefinancingofallorportionsofthe
Project through [theGOBond Actand/orCIF]5; and
WHEREAS:Portion(s)oftheProjectmayalsobefinancedbybondsissuedby theNewJersey EducationalFacilitiesAuthoritywhichbeartax- exemptinterestfor federalincome taxpurposes(“Tax-Exempt Bonds”),commercial loans orfunds otherwiseavailableto the Institution; and
WHEREAS:In orderto provide maximum flexibility and most efficient borrowing costs, the Board wishes to authorize financing the Project through [insert Programs for which applying] (the “Proposed Programs”), issuance of Tax-Exempt Bonds, commercialloansandfundsotherwiseavailabletotheInstitution or anycombination thereof (the“FinancingStructure”);and6
WHEREAS:The Boardwishestoapprove the formof theApplicationtobe submittedtotheSecretaryofHigherEducation(the“Secretary”) for theProposed Programsfor theProject,andto designateand authorize officers of the Institution to take necessary and
5ThespecificProgram(s)forwhich application is being authorized should beidentified.
6Thesample resolution includes referencesand authorizes usesources offundingother than thePrograms.Ifan institution intends to useoneormoreoftheseothersourcesfor matchingfunds orotherwise, theinstitution maywish to include authorization forthese other fundingsources in this resolution. Pleasenotehowever, that theinstitution’s matchingfundsfortheGO Bond Act maynot include anyfunds theinstitution receives undertheCIF Programs.
desirable actions to undertake, implement and submit to the
SecretarytheApplicationfortheProject;7and
[WHEREAS:TheBoardhereby approvestheLongRangeCapitalPlanofthe InstitutionintheformattachedheretoasExhibit Aandauthorizes anddirectsthe officersdesignatedinthisresolutiontoinclude the Long RangeCapitalPlanintheApplication(s)approvedherein;8] and
WHEREAS:The Boarddesirestoauthorize certainofficersoftheInstitutionto determinetheFinancing Structurewhichismosteconomically advantageoustotheInstitutionprovidedtheFinancing Structure includesutilizationofthe Proposed Programs, andtake allaction necessary orbeneficialtoaccomplishthefinancingoftheProject includingthefinancingofcapitalizedinterest,ifany,andother costsofissuing any debtincluding,Tax-ExemptBondsorother financings (“FinancingCosts”); and
WHEREAS:TheBoardreasonablyexpectstoreimburseexpendituresforcosts of the Projectpaidpriortoissuance of Tax-ExemptBondsor any debt bearing interest which is exempt from gross income for federalincome taxpurposeswhichwillfundan applicable Project and/orProgram;
NOW,THEREFORE,BEITRESOLVEDBYTHEBOARDOF[]AS FOLLOWS:
SECTION1. The Board approves the Project and authorizes the undertaking, implementation and financing of the Project in a maximum aggregate amount not to exceed $______(including Financing Costs). [The Board approves the Long Range Capital Plan of the Institution in the form attached hereto as Exhibit A].9
SECTION2.TheBoardapprovesthefinancingofalloranyportionofthe
Projectthroughthe[identify Program[s]forwhichfundingwillberequested].TheBoard
7A separate application must besubmitted for eachProject althoughan institution may applyfor fundingfordifferent components ofthat Project through morethan one Program. Forexample, iftheinstitution intends to applyfor fundingundertheGOBond Act foronecomponent oftheProject and other components oftheProject are eligible for fundingunderCIF, theinstitution must submit one application but mayrequest funding undertheGOBond Act and CIF forthe eligiblecomponents ofthat Project.
8In order to beeligibleforcertain Programs theinstitution must submitalongrangecapitalplan approved bytheinstitutions’governingbodyaspartoftheApplicationforthatProgram. If the institution doesnotalreadyhaveaplan orhasaplan thathasnotbeen approvedbythegoverning body, theinstitution maywantto approve theplanin the resolution authorizingtheapplications.
9See footnote8.
approvestheApplicationforfunding ofthe ProjectthroughsuchProgram[s]intheform submittedtothe Boardandauthorizesanddirectsthe hereindefinedDesignatedOfficers tosubmitsuchApplicationtothe Secretary withsuchchanges,modificationsand additionsasareapprovedbytheDesignatedOfficersandsuchchanges,modifications andadditionsshallbeconclusively evidenced by thesubmissionoftheApplicationtothe Secretary. [TheBoardexpresslydirects and authorizestheDesignatedOfficersto submittheLongRangeCapitalPlanintheApplicationforany Programforwhichitis required.]TheBoardacknowledgesandagreesthatapprovaloftheApplicationand receiptoffundspursuanttothe Program(s) willobligate theInstitutionto:(a) provide fundsfor the operation andmaintenance of the Project,(b)contribute tothe costof the Project;(c)pay alloraportionofdebtserviceonTax-ExemptBondsissuedtofundthe Proposed Program(s)asapplicable;and(d)fulfillother conditionsimposed under the Program(s)andhereby directsandauthorizestheDesignatedOfficerstocertify such acknowledgementandagreementaspartofthesubmittedApplication. TheDesignated Officersarehereby authorizedanddirectedtofulfillallconditionsoftheProposed Program(s)including withoutlimitationproviding fortheoperationandmaintenance of theProjectandusingavailablefundsoftheInstitutiontopay forsuchoperationand maintenanceandtosatisfyconditionsoftheProposedProgram(s)tocontributetothe costofProjectsand/ordebtserviceonTax-ExemptBondsissuedto fundthe Proposed Program(s)from available funds oftheInstitution.10
SECTION3. TheBoardfurtherapprovesthefinancingofalloranyportionof the ProjectwithTax-ExemptBonds,commercialloansandother fundsavailable to the Institutionandthrough theFinancingStructuredeterminedtobemosteconomically
advantageous to the Institution by______and ______(the “DesignatedOfficers”). TheDesignatedOfficersareexpresslyauthorizedanddirectedtodetermine suchFinancing StructureprovidedthattheFinancingStructureincludesutilizationof Programs which are approved bytheSecretaryforfinancingtheProject.
SECTION 4. [The Board Chairperson,theBoard Secretary,the Executive Assistanttothe Board,the PresidentandVice Presidentof AdministrationandFinance] (eachan"AuthorizedOfficer")are eachhereby authorizedanddirectedtoapprove, execute and deliver any and all agreements necessary to undertake, implement and financetheProjectandanyandallotherfinancingdocumentsandinstrumentsinthe formapprovedby theAuthorizedOfficersexecutingthesameinthenameofandon behalfofthe[Board/Institution],inasmanycounterpartsasmaybenecessary,andto affixorimpresstheofficialsealoftheInstitution thereonandtoattestthesameandsuch executionandattestationwillbe conclusive evidence of theapprovalof the formand contentofsuchagreementsandotherdocumentsandinstrumentsnecessary toundertake, implementandfinancetheProjectandtopay Financing Costsincluding throughthe financingthereof.TheAuthorizedOfficersarefurtherauthorizedanddirectedtodoand
10TheApplicationsrequirescommitmentof theinstitution tofulfilltheactionsdescribed inthe last2 sentencesofSection2.
performsuchotheractsandtotakesuchotheractionsasmaybenecessary orrequired,or whichmay bedeemedtobeappropriatetoimplementthepurposesofthisresolutionto undertake,implementandfinancetheProjectandFinancingCostsandthepayment and/or repayment thereof.
SECTION 5. This Resolutionisa declarationof theofficialintentof the InstitutionthattheInstitutionreasonablyexpectsandintendstoreimburseexpenditures forcostsoftheProject[s]paidpriorto issuanceof Tax-ExemptBondsorothertax-exempt debt issued to fund the Projects/Programs [“Applicable Tax-Exempt Debt”] in accordancewithTreasury RegulationSection1.150-2andthatthemaximumprincipal amountof theTax-ExemptDebtexpectedtobeissuedtofinancecostsof the Project[s] includingamountstobeusedtoreimburseexpendituresforsuchcostspaidpriorto the issuance of such Tax-Exempt Debt is $______(including Financing Costs).
SECTION 6.Allresolutions,ordersandother actionsof the Boardof the Institutioninconflictwiththeprovisionsofthisresolutiontotheextentof suchconflict areherebysuperseded,repealed orrevoked.
SECTION 7. This Resolution shall take effect immediately; and beit further
RESOLVED:Thatno furtherapprovalsbytheBoardarenecessarytoimplement this Resolution.
RESOLUTION ADOPTED:
DULY CERTIFIED: