State Universities

Chapman and Cutler LLP has had extensive experience as bond counsel in connection with the issuance of bonds by or on behalf of state universities, and the federal tax law aspects of such financings.

Each year, we act as bond counsel for a wide variety of state university-financed bond issues for student housing and recreational facilities, medical facilities and projects to produce energy, as well as other revenue-producing facilities.

During the course of our work on behalf of state universities, Chapman and Cutler has considered, analyzed and resolved legal issues relating to the financing of educational buildings, dining halls, dormitories and other housing facilities, hospitals, parking facilities, athletic and recreation complexes, energy savings contracts, co-generation power facilities, integrated university-wide computer systems and other routine and unique capital facilities owned and used by state universities.

We acted as bond counsel for three revenue bond issues for the University of Illinois to finance infrastructure upgrades to the economically depressed neighborhood adjacent to the University of Illinois Chicago campus. In connection with this expansion, facilities were financed, in part, with tax increment revenues pledged pursuant to an intergovernmental cooperation agreement with the City of Chicago.

In connection with a revenue bond issue for Illinois State University, we gave advice on tax and state law issues relating to the potential use of university parking facilities by a city-owned hotel.

Financings for state universities for which the firm has acted as bond counsel include revenue bonds payable from student, dining and housing fees; hospital and other revenue sources; lease revenue bond financings; installment purchase contracts; complex advance refundings; and certificate of participation transactions.

In the certificate transactions, we worked with issuers, investment bankers, bond insurers, rating agencies and others in the course of the development of a highly complex structured financing technique economically suitable to the issuers.

Additionally, our attorneys act as bond counsel in connection with the issuance of bonds to benefit community colleges, private colleges and universities on a conduit basis and to provide student loans. Each year, we approve hundreds of millions of dollars of such bond issues in Illinois and elsewhere. While such financings are distinct from the type of financings typically issued for state universities, many of the legal issues presented and analyses used in such financings are identical or similar to those involved in transactions for state universities. In fact, both the University of Illinois and Southern Illinois University have issued revenue bonds for university medical facilities that were issued as qualified 501(c)(3) bonds in order to accommodate the use of such facilities by a not-for-profit corporation.

Our attorneys are regularly consulted by the staff and financial advisors of state universities with respect to state law or tax issues that arise. We provide services related to post-compliance issues for past financings or the structuring of future debt issues.

Chapman and Cutler attorneys have also advised officials at state universities on federal tax questions relating to the use of bond-financed system facilities by private businesses and the effect of private or federal grants.

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