Dec 01, 2000

Resolution of Business Disputes

TRADITIONAL DISPUTE RESOLUTION THROUGH LITIGATION The American litigation process is significantly different from systems in other industrialized nations. A general understanding of these differences may impact whether one wishes to expose himself to this process by investing in the U.S. Generally, nearly any breach of a right or duty will be actionable if it results in damage to the party maintaining the action. What rights or duties exist and may therefore be breached is a question of substantive law and is addressed elsewhere in this pamphlet. U.S. Court Systems There are two different and separate principal court systems in the… Read more

Nov 30, 2000

Alternative Dispute Resolution

In Georgia, the State Bar’s Ethical Consideration 7-5 says: “An attorney as adviser has a duty to advise the client as to various forms of dispute resolution. When a matter is likely to involve litigation, an attorney has a duty to inform the client of forms of dispute resolution which might constitute reasonable alternatives to litigation.” Over the last two decades, there has been great interest in finding ways to resolve disputes other than through the traditional court system. Some of the dispute resolution techniques that companies have turned to are fairly new, while others have been used for many… Read more

Mar 08, 2002

Tax-Exempt Financing for Waste Disposal/Recovery and Wastewater Treatment

Introduction Tax-exempt bond financing is available for certain water and sewage, solid waste disposal/recovery project, waste-to-energy projects, and wastewater treatment projects. Bond financing may be available for public, private and public-private partnership projects. Bonds might be issued directly by a city or a county for government-owned project pursuant to Georgia’s Revenue Bond Law. A privately owned and operated project might be financeable through Georgia’s Development Authorities Law. A government-owned project or a public-private partnership project might be financed with Georgia’s Resource Recovery Development Authorities Law or Georgia’s Regional Solid Waste Management Authorities Law. In order for the bonds to be… Read more

Jun 06, 2007

How to Live With a 501(c)(3) Bond Issue

The bond documents have been bound in a neat, thick transcript. The chief financial officer has worked for months with the board of directors, management, bond counsel and the remainder of the bond working group to structure and close a successful 501(c)(3) bond issue. The 501(c)(3) nonprofit commences its building program with the bond proceeds and looks forward to enjoying the low, tax-exempt interest rate on the bonds for their full term. What more does the nonprofit need to do? Although continuing compliance with a tax-exempt 501(c)(3) bond issue need not be burdensome, it is rife with specialized and non-intuitive… Read more

Jun 06, 2007

Taxable Versus Tax-Exempt Bond Financing for Project Financing

When an industrial expansion will create jobs, revenues and development, many communities will offer incentives to attract the location. Bonds are an important incentive, authorized by state law to provide advantageous financing for certain businesses. A government body may issue bonds to finance a qualifying project, and the company operating the facility must pay amounts to service the bonds. Federal tax law changes have restricted the use of tax-exempt industrial development bonds (IDBs) prompting communities to develop alternatives. In many jurisdictions “Taxable Bonds” can be issued with some of the same advantages. Tax-Exempt IDBs Interest on qualified IDBs is exempt… Read more

Jun 06, 2007

Overview of Special Purpose Local Option Sales Tax (SPLOST) and Related Financing

The unpopularity of property taxes and the simplicity and perceived fairness of sales taxes have made the County 1% Special Purpose Local Option Sales Tax (“SPLOST”) a popular method for funding needed capital projects in Georgia. That the voters must approve the SPLOST through referendum reinforces democratic principles and is popular with officials. The voters will decide whether the described projects are funded through SPLOST, and elected officials need not raise property taxes for funded projects. The SPLOST statute was substantially rewritten in the 2004 General Assembly, effective July 1, 2004, with respect to how the tax is to be… Read more

Jun 06, 2007

Overview of Lease-Purchase Financing and COPs

Introduction This Memorandum provides a brief explanation and overview of tax-exempt lease-purchase financing and certificates of participation (“COPs”) in Georgia. Counties, cities and school districts (referred to as “Local Governments” in this Overview) are authorized by Georgia law to obtain tax-exempt lease-purchase financing as described below. By this method Local Governments can acquire real property, buildings, vehicles and equipment without incurring a traditional form of debt, such as general obligation bonds or revenue bonds, and no voter referendum or court bond validation is required. The simplified procedures make lease-purchase financing particularly suitable for shorter-term or smaller financings of essential governmental… Read more

Jun 06, 2007

Georgia Ad Valorem Tax Incentives Through Bond-Lease Transactions in GA

All Georgia communities can provide partial relief, and some can provide full exemptions, from ad valorem taxes for certain privately-used facilities through bond-lease transactions. This ability can be used as an incentive to induce the location of a new business or the expansion of an existing business in the community. This incentive can be provided whether or not the project qualifies for tax-exempt bond financing. An absolute waiver of ad valorem taxes would be illegal under the Georgia Constitution as well as under basic principles of uniformity of taxation and equal protection of the laws. Ga. Const. of 1983, art…. Read more

Jun 06, 2007

Overview of Bond Financing for 501(c)(3) NonProfit Organizations

Introduction This memorandum provides a brief explanation and overview of tax-exempt Bond financing for 501(c)(3) nonprofit organizations under the Internal Revenue Code of 1986, as amended (the “I.R.C.”). Tax-exempt 501(c)(3) Bonds may be issued for most facilities utilized for the exempt purposes of Section 501(c)(3) organizations, as outlined in this memorandum. The principal advantages of such bond financing are the low interest rates and the attractiveness of the debt to lenders and investors. Bond financing may permit a user to build its projects sooner, expand the scope of its projects, or direct its fundraising to other purposes. With facilities financed… Read more

Mar 30, 2012

Overview of Bond Financing for NonProfit Schools

Introduction. Nonprofit schools increasingly are taking advantage of tax-exempt bond financing to fund capital improvements and expansion. Bond financing can be used for land acquisition, bricks and mortar, furniture, furnishings and equipment and many other costs associated with a school’s educational, recreational and charitable purposes, including in proper circumstances refinancing of capital debt. The principal advantages of such bond financing are the low interest rates and the attractiveness of the debt to lenders and investors. Bond financing may permit a school to build its projects sooner, expand the scope of its projects, or direct its fundraising to other purposes. With… Read more