Section R20-8-201. Definitions

In addition to the definitions prescribed in A.R.S. § 41-2251, the following definitions apply in this Article:

“A rating” means an applicant has been assigned a credit rating of A1, A2, or A3 by Moody’s or A+, A, or A- by Standard & Poor’s.

“Access to capital” means an applicant’s ability to obtain fund- ing based on the security of the revenues to be pledged, the general financial condition of the applicant and other factors outside of the applicant’s control.

“Administrative fee” means any and all costs and expenses as- sociated with processing, preparing or executing a financial as- sistance application or related bond transaction, including costs and expenses associated with staff, the Board, professional ser- vices, service providers, vendors or other entities involved in the transaction.

“Administratively complete” means that an applicant has com- pleted the application for financial assistance and provided all of the information and documents that the staff determines are applicable.

“Applicant” means a political subdivision, special district, or Indian tribe that applies to the Authority for financial assistance.

“Baa rating” means an applicant has been assigned a credit rat- ing of Baa1, Baa2, or Baa3 by Moody’s.

“BBB rating” means an applicant has been assigned a credit rating of BBB+, BBB, or BBB- by Standard & Poor’s.

“Category I” means a rating indication assigned by Moody’s that applies to applicants that have credit ratings determined to fall into category of A3 or higher.

“Category II” means a rating indication assigned by Moody’s to applicants that have credit ratings determined to Baa3, Baa2, or Baa1.

“Coverage ratio” means the ratio produced by the fraction in which pledged revenues are the numerator and debt service is the denominator.

“Debt service” means annual principle and interest payments on all loans from the Authority plus any principle and interest payments on other debt secured with an equal pledge on the same revenues pledged to the Authority’s loans.

“Dedicated revenue source” means the origin of money com- mitted by an Indian tribe to be used for repayment of a loan.

“Financial assistance round” means a period of time established by the Board during which applications for financial assistance are sent to potential applicants, returned to the Authority, ana- lyzed by Staff, and submitted to the Board for approval or dis- approval.

“General obligation” means a pledge by the applicant’s voters of the full faith and credit and unlimited taxing ability to secure a loan. The applicant must have the ability to levy and increase property taxes for payment of debt obligations.

“Moody’s” means Moody’s Investors Service, Inc., its succes- sors and their assigns.

“Project” means the whole, or any distinguishable segment or segments, of publicly owned infrastructure for which financial assistance is being requested or provided.

“Staff” means the Executive Director and other employees of the Water Infrastructure Finance Authority.

“Standard & Poor’s” means Standard & Poor’s Ratings Service, its successors and their assigns.

Historical Note

Adopted effective February 3, 1998 (Supp. 98-1).

Amended by final rulemaking at 7 A.A.R. 2042, effective April 10, 2001 (Supp. 01-2). Amended by final

rulemaking at 16 A.A.R. 190, effective March 6, 2010 (Supp. 10-1). Pursuant to authority of A.R.S. § 41- 1011(C), Laws 2011, Second Special Session, Ch. 1, authorizes the transfer of A.R.S. citations. Therefore the

A.R.S. citation in the opening paragraph was updated; due to a reassignment of duties, the reference to the

Department of Commerce was removed in the definition of “staff.” Agency request filed February 12, 2013, Office File No. R13-179 (Supp. 13-1).