Applicable federal law
Includes the Internal Revenue Code (IRC) and regulations promulgated thereunder, including IRC sections 103, 141, 147-150 and related regulations. Note: IRS publication 4079, Tax-Exempt Governmental Bonds Compliance Guide provides guidance and explanation for most areas of tax-exempt financing relevant to UMS.
Investment earnings on bond proceeds in excess of the bond interest paid to bondholders, adjusted for certain expenses.
An original investigation for the advancement of scientific knowledge not having a specific commercial objective (see IRS Rev. Proc. 2007-47). For example, product testing supporting the trade or business of a specific Non-Exempt Person is not treated as basic research.
Any person other than a member of the university faculty, staff, or student body.
A management, service, or incentive payment contract between the University and a service provider under which the service provider provides services involving all, a portion of, or any function of, a facility.
The federal government, any agency or department of the federal government, any nonprofit corporation and any other firm, corporation, partnership, or entity that is not a state or local governmental unit.
Private Business Use
Use in a trade or business carried on by or for the benefit of any NonExempt Person. Private business use does not include use of a facility by a member of the general public where the facility is open to the public and the user has no special legal entitlement to use of the facility.
A state or local governmental unit.
A provision that shields a party from liability under the law provided that certain conditions are met. IRS regulations and revenue procedures contain several safe harbors relating to activities which could generate private business use, the most important of which pertain to management contracts and research contracts.
Any person other than a qualified user that provides services under a contract to, or for the benefit of, a qualified user. Common service providers include food vendors and facilities managers.
A debt service fund, redemption fund, reserve fund, replacement fund, or any similar fund, to the extent reasonably expected to be used directly or indirectly to pay principal or interest on the bond issue.
Bonds issued and repaid by the State of Maine, the proceeds of which are used by the UMS in furtherance of its governmental purpose.
The Non-Arbitrage and Use of Proceeds Certificate or other document signed by the Treasurer of the UMS at the closing of UMS bond issuance in which the UMS makes certain representations, warranties and covenants relating to the tax eligibility of the projects, expenditure and investment of bond proceeds and UMS operations.
TED Compliance Coordinator
Tax-Exempt Debt Compliance Coordinator. This is the person to whom the System Treasurer has delegated certain compliance responsibilities related to tax-exempt bond compliance.
Trade or Business
Any activity carried on by a Non-Exempt Person other than an individual acting as a member of the general public.
The University of Maine System’s Vice Chancellor for Finance and Administration and Treasurer.
University revenue bonds
Tax-exempt bonds issued and repaid by the UMS, the proceeds of which are used in furtherance of its governmental purpose.