- (a) The President of the Arkansas Development Finance Authority will determine if a volume cap shortage exists as to any application when the amount of volume cap requested in the application exceeds the amount available in any specific or general purpose category of volume cap available to the applicant.
- (b) In the event a volume cap shortage exists as to an application, the president may issue a reservation to another application with a higher priority number that qualifies for a specific purpose not available to the application for which the volume cap shortage exists.
- (c) A determination by the president that an application exceeds the amount of available volume cap as provided in this section and communicated to the applicant as provided in 15 CAR § 73-106(f) shall constitute declaration of volume cap shortage under Arkansas Code § 15-5-604.
- (d) The president may determine within a reasonable time that an applicant will accept a smaller allocation of volume cap which would prevent a declaration of volume cap shortage for a particular application.
(e) Whenever a volume cap shortage has been declared pursuant to this section, the Arkansas Development Finance Authority, in consultation with the Department of Commerce, may resolve the shortage by:
- (1) Determining the relative priority of Applications for Reservation of Volume Cap;
- (2) Reducing the amount of volume cap to be allocated to any Application for Reservation of Volume Cap;
- (3) Denying an Application for Reservation of Volume Cap;
- (4) Deferring for a period of time an Application for Reservation of Volume Cap; or
- (5) For all applications except those for multifamily bonds, the president may issue letters reserving volume cap for the next succeeding calendar year to a particular bond issue or bond issues, and any such reservation shall be issued in conformance with all applicable rules on the first day of the next calendar year.
- (f) After the conclusion of each shortage, the president shall file a report with the Board of Directors of the Arkansas Development Finance Authority at its next regularly scheduled meeting providing the basis for any actions made to resolve the volume cap shortage.