Record Retention For Tax-Exempt Bond Financings
NYU finances certain capital projects through the issuance of qualified 501(c)(3) tax exempt bonds. “Tax-exempt” means that the interest paid to bondholders is not subject to federal tax. Tax-exempt status remains throughout the life of the bonds, but this status can be lost if certain applicable federal laws do not remain satisfied. Other consequences can result from failure to comply with restrictions relating to arbitrage, timing and use of bond proceeds, and other aspects of a bond issue. The purpose of this policy of New York University is to provide direction and guidance regarding retention of records relating to tax-exempt bond financings for the period of time required by the Internal Revenue Code.
University staff involved in any stage or aspect of any NYU bond issue, including but not limited to those who manage, direct or influence:
• Pre-issuance processes and decision-making including identification of eligible projects and due diligence on environmental and tax aspects of projects
• The use of bond proceeds and timing of use
• Investing of bond funds and arbitrage processes
• Private use of property financed by tax-exempt bonds, including leases, and management and services agreements
• The creation and retention of documentation relating to use of proceeds, arbitrage, return filings, and private usage
• Recording and reporting of financial transactions related to tax-exempt bonds
It is the policy of New York University to retain all records relating to tax-exempt bond financings for the period of time required by the Internal Revenue Code. As of the date of this policy, IRS guidelines require that Tax-Exempt Bond Records be retained for the entire term of the bond issue plus three years and, in the case of a bond issue refunded by one or more subsequent issues, for the combined term of the issues plus three years.
For the purposes of this policy, Tax-Exempt Bond Records means all documents, reports, accounts and certifications relating to the (i) issuance of tax-exempt bond financing, (ii) expenditure of bond proceeds, (iii) investment of bond proceeds and (iv) use of bond-financed property by public or private sources. Examples of bond issuance documents include the trust indenture, loan agreement and bond counsel opinion; examples of expenditures include draw down backup materials, reimbursements and declarations of official intent; and examples of private use of bond-financed property include management and service agreements, research contracts, concession agreements and food service contracts.