Bond Validation Flashcards

1
Q

What court validates bonds?

A

Circuit.

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2
Q

What does Circuit Court look at when validating bonds?

A

Circuit Court checks:
(1) Purpose legal,
(2) lg has the Authority to issue,&
(3) Has complied with the requirements of Law.
(4) ~ if there is an interlocal:
Validity of interlocal obligating LG payments (lease/purchase) (caselaw)

Determines:
Validity of the bonds, validity of the revenue pledged.

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3
Q

What types of issues should not be considered, but often are?

A
BOND VALIDATION
-----------
Collateral issues.
•	Feasibility of the improvement.
•	Whether revenues will suffice.
•	Exemption of the bonds from tax.
•	Tax exempt status of issuer.
-----------
~~~weird how tax matters are excluded~~~
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4
Q

In a bond validation proceedings, who is PL? Who is Def?

A

Plaintiff = issuer
State Atty = def.

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5
Q

What does Pl’s petition seek?

A

Order finding bond valid to issue or validating interlocal in which LG incurs payment obligation (lease/purchase)
The first publication at least 20 days prior to hearing date.
Direct appeal to Supreme Court.

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6
Q

What does Pl do w/ its Order to Show Cause & on what timeline?

A

Publish once a week for 2 consecutive weeks.
1st publication 20 days before hearing.

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7
Q

In its bond validation complaint, what 3 things must an Independent Special District allege?

A

• Trust indenture created.
• With a bonded trustee acceptable to the court
• Certifies proper expenditure of bond proceeds.

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8
Q

Bond validations are appealed to which court?

A

Direct appeal to Supreme Court.

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9
Q

On appeal, how is trial court’s ruling treated?

A

Presumed correct.

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10
Q

Who are the only indispensable parties to a validation proceeding?

A

Issuer & State.

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11
Q

What is the effect of bond validation?

A
BOND VALIDATION
-----------
Res judicata claim preclusion.
---
But subject to collateral estoppel on issues not raised.
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12
Q

Can a newly formed Interlocal (FS 163) entity issue bonds or bond anticipation notes?

A

No UNLESS its members are electric utilities or formed for water/wastewater.

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13
Q

If newly formed Interlocal (FS 163) electric entity seeks to validate its bonds, where would it file its complaint?

A

Leon County.

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14
Q
FINANCE
-----------
TRUE OR FALSE
-----------
Interlocal Agreements can be validated in circuit court under Chapter 75, Florida Statues, if the agreement includes a payment obligation on the part of the LG.
A
FINANCE
-----------
TRUE     
-----------
Quirky.  Regards lease purchase agreements and is found in case law.
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15
Q

An Order to Show Cause in a bond validation proceeding must be published:
(a) once a week for 4 weeks, the 1st publication at least 30 days prior to the hearing date
(b) once at least 20 days prior to the hearing date
(c) once a week for 2 weeks, the 1st publication at least 20 days prior to the hearing date
(d) none of the above

A

C

How remember?
“show cause” is 2 words. Publish 2 times, 20 days

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16
Q

Which of the following would NOT be proper for judicial review in a bond validation hearing?
(a) Whether the capital project to be financed is economically feasible
(b) Whether LG complied with applicable election procedures in conduct of bond referendum
(c) Whether an interlocal agreement which obligates a LG to pay money is valid
(d) Whether remedies provided in a bond resolution are valid
(e) all of the above
(f) none of the above
(g) A and D only
(h) A only

A

I think answer below is wrong, she’d be G
—————-
choice (h) i.e, A.
———–
I always want to say “G” but wh/ remedies are valid is of interest to Court b/c its ‘based in law’
———–
Circuit Court checks:
(1) LG has the authority to issue,
(2) Purpose legal, &
(3) Has complied with the requirements of law [I.E., wh/ remedies in resolution are valid; wh/ complied w/ election procedures,
(4) Validity of interlocal obligating LG payments (lease/purchase) (caselaw).

17
Q

Chapter 75, Florida Statutes, provides a judicial proceeding pursuant to which bonds of a FL LG can be declared valid prior to the issuance of such bonds.

A

TRUE

18
Q

Independent special districts must allege the creation of a trust indenture in a complaint for the validation of bonds to be issued by such special district.

A

think of the heavy oversight on independent
———–
need trustees for:
(1) Indep S.D. validation
(2) cops - sentence you 5-30 where you become a Trustee

19
Q

At minimum, complaints for the validity of bonds by a LG must be served upon the State Attorney for the circuit in which the complaint is filed.

A

TRUE

Only necessary parties. If taxpayer files test suit, bound to intervene.

20
Q

Appeals of bond validations are filed with the District Court of Appeal.

A

FALSE

Supreme Court

21
Q

Give an example of what would not be approved by a validation judge?

A

If bond remedy = compel AV taxes be used to repay the bond (like a GOB).
———–
Remedies are ‘based in law’ & proper for Judge to review. AV taxes for revenue bond is not a proper remedy.

22
Q

When must a bond validation complaint include allegation of a trustee?

A
BOND VALIDATION
-----------
When filed by a INDEP Spec Dist.
-----------
NOTE ALSO - 
COPs revenue bonds require trustee.
COPs sentence you 5-30 yrs, where you become a Trustee.
23
Q

Must a dissatisfied citizen speak up at Circuit court level or can he join at Supreme Court level?

A

Circuit court.

~this was new in 2015. Circuit decision is res judicata.