Summary: UNIVERSITY OF HOUSTON SYSTEM
SECTION: Fiscal Affairs NUMBER: 03.A.28
SUBJECT: Tax-Exempt Bond Post-Issuance Compliance
December 1, 2010; Revised December 21, 2011 Page 1 of 8
This policy establishes the requirements and procedures for ensuring compliance with
federal laws relating to the issuance and post-issuance monitoring of tax-exempt bonds.
The Board is authorized to issue tax-exempt bonds pursuant to Chapter 55, Texas
Education Code, as amended, and Chapters 1207 and 1371, Texas Government Code, as
amended. With respect to tax-exempt bonds, the Board covenants to bondholders that it
will monitor and control the receipt, investment, expenditure and use of all bond
proceeds and take or omit to take such other and further actions as may be required by
Sections 103 and 141 through 150 of the United States Internal Revenue Code of 1986,
as amended, to cause interest on such tax-exempt bonds to remain excludable from the
gross income of bondholders.
The System shall comply with all federal tax laws related to tax-exempt bonds and bond
financed facilities prior to and after issuance. The System shall have procedures in place