Article 5: Special Districts

1. Creation

The Board creates and manages Special Districts herein as the “District,” which is independent as a special-purpose governmental unit that states unincorporated as a local governing subdivision incorporated within local governments political subdivision such as county, parish, municipal, and township as local governments, with substantial administrative and fiscal independence. It shall be formed to perform all following functions or a set of related functions single ordinance.

The District ordinance has political autonomy or is subject to indirect or direct control of the federal government under the Tenth Amendment of the United States of America. This relationship may be defined by a constitution. in reference to a “civil state.” meaning “state” denotes, as may be appropriate: the United States or any state, territory, or possession thereof; the United States; and any foreign country or territorial subdivision thereof that has its own system of law. Interstate Louisiana pursuant at CC 3516

Created special district subdivisions are officially separate units, that are equivalent in term.

Each District is a special district within the United States that holds legal and administrative jurisdiction within its bounds; as a unit of state government. This includes each state Municipal entity and political subdivision, which bounds has sovereignty over its territory and domestic affairs; to the exclusion of all external powers, on the principle of non-interference in another State’s domestic affairs, and that each State unit (no matter how large or small) is separate but equal bounded as one.

2. Authority

Each commissioned district shall have authority as a local public special division that is situated and having jurisdiction entirely within the boundaries of the local governmental subdivisions of any Parish, City, township, village, borrow, or sub-division in a State area.

3. The Goal

The goal of each District is to serve as governing rules for private and public service in the form of program-related investments with comparable and effective work; in the most cost-efficient way possible for the private as well as public sectors; adjacent to financial compliance. The District handle task such as equity compensation, asset securitization, and monetization, business planning, grant creation, accounting, payroll activities, and paralegal acts. Also family management, community organizing, governance, investment education, coordination, philanthropy, and planning. Drafting projects as private equity and public trust for family and community clients who choose to invest in offered funds. The District monitors investments for accredited and non-accredited investors that agree and communicate with the District to settle all equity as an expense and Return of Investment ROI repayments.

4. Functions

Each District shall provide Multi-function versus a Single Function in specifically defined areas, unlike counties and cities that provide services throughout their boundaries. It provides multiple programs, mandated by the federal and state governments. The District provides the private services that the public as the following:

A. Enterprise Districts.

Each District shall deliver services that are run like a business enterprise, that charges for certain customers’ services between different special divisions

B. Independent Districts.

Each District service is an independent district. has its own separate governing boards elected by the districts’ own voters.

5. Funding Support

Funding Support of the spending shall be within three categories:

Operations and work (programs).
Alternative Education projects (public works projects).
Project and Activities.

To pay for its regular operations, the District generates revenue from three basic sources:

Equity Certification
Bond Obligation, benefit assessments, and service charges.
Service Charges 90% of most community services are free. However, there may be a service charge to pay for special private programs.

6. Classification

Each District is classified as a special purpose ordinance for the local performance of governmental or proprietary functions within limited boundaries.” In plain language, a special district rules, that delivers a limited number of public services to a geographically limited area.

A. The District has four distinguishing characteristics:

A form of government.
Have governing boards.
Provide services and facilities.
Have defined boundaries.
Local government unit.

B. Each District is commissioned and chartered by local citizens and governing body of political sub-divisions with the State jurisdiction. It delivers specific government services to specific communities. Operating under state laws, this District services autonomous government entities that are accountable to the voters or landowners it serves, and State officials, however, oversee the operations of the District. For example, the District mandates that its doubters must send their annual financial reports to the State Controller’s Office. Also follow the state laws for special taxes, bonded debt, public hearings, public records, and elections.

7. Nongovernments or cities.

Districts are general-purpose areas under the Board. Counties and cities perform a broad array of services to protect the health, safety, and welfare of all their citizens only. The Districts are limited-purpose governmental services, within service area jurisdictions. Districts can provide services in any local or statewide Jurisdiction that is allowed by state law and supported by their constituents. Sometimes county supervisors or city councils can partner with the Board but are legally separate local entities.

8. School Districts

School districts exist to provide one service — public education. However, the District can deliver a variety of public services, excluding education. School districts get most of their money from the state government. The District relies on private revenue with a federal government guarantee.

9. Redevelopment

The Board and Districts shall set up community redevelopment agencies to eliminate some levels of blight by paying for public and private improvements and economic development efforts. However, The Trust Funds do not exist to totally eliminate blight. The Board shall provide private trust services and infrastructure that help communities, but not direct economic development.

10. Statutory Authority

Special Districts operate either under a principal act or a special act. All principal acts will follow general statute that applies to all District types. Occasionally, local circumstances don’t fit the general conditions anticipated by the principal acts. In those cases, the Board will legislate and create a special act within the districts that are tailored to the unique needs of a specific area. Other acts that are integral in nature, have integrative governing board requirements, provide unique services, or need special financing, result in Districts.

11. Community Treasury

Districts shall be managed by Community Committee as constituent and local community leaders as board members as the responsible party for monitoring compliance with the investment terms, acting in the interests of the investors within the Community Treasury as agents to handle share and cash distribution of the repayment from securities to the stockholders, this function is known as a non-solicited “paying agents”.

12. Treasury Management

District treasury management shall be direct or indirect based on Community Investment Infrastructure consisting of the service issued by HSC Hill Scott Corporation and its executive board members appointed by the Board as overall Trustees, subject to confirmation by a majority of the Board.

(a) The treasurers appointed to Seat

1 shall be a resident of the District that includes the largest amount of cumulative area of the District Approved Development Projects, which is a District with a political subdivision.
2 shall be a resident of the District that includes the second largest amount of cumulative area of the District Approved Development Projects.
The members appointed to Seats 3, 4, and 5 need not reside in the specific district. The District is made up of elected members as Treasurers. It’s defined as the governing body that is tasked with decisions about the District mission. The key decisions for the business as a whole come from the consensus of an Investment Board of supervisors and Treasurers who are appointed by the Community Treasury as business service administrative agencies who serve on the districts’ boards for fixed four-year terms.

12. Corporate Trustee Election

Corporate Trustees as Treasurers are elected by becoming shareholders and key officers of Districts and are responsible for also carrying out the District visions. Each shareholder is elected during a fund board meeting wherein the discussions of performance, critical roadblocks, turnarounds, and future strategy take place. In other words, they are responsible for the direction of the Districts and community investments. Each Treasurer is required to know his vertical (scope of business) along with its issues and challenges. Treasurers are also responsible for bringing up any problems with his or her segments of the business to other members, so they can discuss a solution. All the members brainstorm on a solution and bring it to a vote. If a majority of the members can agree on the solution, the conclusion becomes an operative guideline and an essential component of the company’s strategy going forward.

13 Code Of Conduct

1. All codes of conduct shall be governed by Chairman and the Board under the Act, with professional fiduciary obligations in (Chapter 6 Fiduciary Code of Conduct) within the Districts, for private investment services; by reasonable care and diligence, loyalty, disclosure, and accountability. All projects performed are in the best interest of clients.

Duties include:

Acting as the principal point of contact for family and community funding. Connecting with private clients for application, management, and reporting (both programmatic and financial. This includes all Categorical Assistance Progress Reports and Financial Status Reports. Utilizing funds as directed by the private client. Leading all submissions requirements for the Business. Establish and maintain accounting systems and financial records to accurately account for funds awarded. Promote honest and ethical conduct and compliance with the law, particularly as related to the maintenance of financial books and records and the preparation of financial statements. The obligations of this Code of Ethics are for Financial Professionalism but do not replace, the Governing Policies of Business Conduct and Ethics and applicable office compliance manuals.

The Fiduciaries are expected to:

A. Engage in and promote ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships, and disclose to the client any material transaction or relationship that reasonably could be expected to give rise to such a conflict.

B. Carry out responsibilities honestly, in good faith, and with integrity, due care, and diligence, exercising at all times the best independent judgment.

C. Assist in the production of full, fair, accurate, timely, and understandable disclosure in reports and documents that the client files with, or submits to the Securities and Exchange Commission and other regulators and in other public communications made by the client and another agent.

D. Comply with applicable government laws, rules, and regulations of federal, state, and local governments and other appropriate regulatory agencies.

E. Promptly report (confidentially or anonymously to an Audit Committee when witnessing any violation of this Code of Ethics for financial compliance or any other matters that would compromise the integrity of the financial statements.

F. Never take, directly or indirectly, any action to coerce, manipulate, mislead, or fraudulently influence independent auditors in the performance of their audit or review of financial statements.

G. Take all necessary actions to enforce this Code of Ethics for Financial compliance.

14. Powers and Area of Service

A. The District has 4 attribute as governing power:

Organized partnership and trust,
Public Private Authority
Governmental Character
Substantial autonomy.

B. The District provides specialized services to persons living within the designated geographic area and may contract services outside the area. The district shall cross the lines of towns, villages, and city or county lines. Also, serve a large portion of a state or portions of more than one state by compliance with the law.

15. Multi Governing Body

The Act shall be governed in selected areas the District by a board of associates and affiliates. Each board acquisition may be appointed by public officials, private entities, benefited citizens, or property owners. Moreover, public officials are permitted to serve as ex-office members on the board. The Board will manage day-to-day operations and decision-making and policy implementation. The District is often run in the same town-meeting fashion as other local governments. It shall have employees that exist solely to assist the community Clients and Affiliates.

12. Civil Office

The District is a civil office that is a delegation of sovereign power from the state, as an independent agent; Due to public ultimate control, this gives the state the right to freely delegate as a sovereign power to tax for special projects as surety. This allows the Trust to aid communities autonomously with little supervision.

13. Contracting Authority

A. The District has the authority to draft administrative contracts by the level of choice of private law and authorized government in accordance with state law constitutional amendments and statutes that exist in all states. It is a legally separated entity with public authority powers. Created by private legislative action, court conservancy action, and public referendum.

B. The District honors state and local governing compliance that applies to various statutory authorities, commissions, corporations, and other forms of organizations.

C. It has certain governmental characteristics, which are subject to laws to administrative or fiscal control by its board as an independent local government; therefore, classified as a subordinate agency of general governments.

14. Accountability

The District is designed to have a public trust government fiscal accountability relationship with the citizens. In order to maintain accountability for authority, the states must maintain ultimate control, with (the power to repeal any state charter by law at any time, on the condition that the District Charter dishonors the State Constitution or statute.

15. Planning Authority

A. Districts may promote public interest in and understanding of a plan and to that end may publish and distribute copies of a plan or of any report and may employ such other means of publicity and education as it may determine.

B. Members of a committee, when duly authorized by the Trust, may attend planning conferences or meetings of planning institutes or hearings upon pending planning legislation, and a committee may, by resolution spread upon its minutes, pay the reasonable traveling expenses incident to such attendance.

C. A committee shall, from time to time, recommend to the appropriate public officials programs for public structures and improvements and for the financing thereof. It shall consult and advise public officials and agencies, public-utility companies, civic, education, professional, and other organizations, and citizens in relation to the protection or carrying out of a plan. A committee may accept and use gifts for the exercise of its functions.

D. All public officials shall, upon request, furnish to a committee, within a reasonable time, such available information as it may require for its work.

E. A committee, its members, officers, and employees, in the performance of their functions, may enter upon any land and make examinations and surveys and place and maintain necessary monuments and marks thereon. In general, a committee shall have such powers as may be necessary to enable it to fulfill its functions, promote planning, and in all respects carry out its purposes; having miscellaneous powers and duties of the District In order to develop each charter strategy, the District has conducted extensive research to identify gaps or needs in the fields it supports with the administrator article of incorporation.

16. Revenue

1. Revenue means fees earned from providing services and the amounts of hourly wage are:

2. Under the accrual basis of accounting, revenues are recorded at the time of delivering the service and community results as asset “community merchandise,” even if cash is not received at the time of delivery.

3. The term income is used instead of revenues.

4. Revenue accounts are credited when services are performed/billed and therefore will usually have credit balances.

5. At the time that community projects are created a revenue account as equity is credited.

6. The account debited might be Cash, Accounts Receivable, or Unearned Revenue depending if cash was received at the time of the service, if the project is billed at the time of the service and will pay later, or if the project had paid in advance of the service being performed.

17. Financial Service Provider

1. Financial service providers the Treasury and other signed agencies by Treasury, which include brokers (both securities and mortgage), management consultants, and financial advisors, who operate on a fee-for-service basis.

2. Their services include improving informational efficiency for the investors and in the case of the brokers, offering a transactions service by which the District and its investor can liquidate existing assets.

18. Cooperative Endevadors

A. The Districts shall form a private/public agreement is a form of investment securities assistance. It reflects a relationship with Trust as the public authority of private investors for community recipients. Such As:

Grantor/Beneficiaries: Non Accredited and Accredited Private investors as Financial Intermediaries or “Preferred Stockholders”
Fiduciary Trustees: Fiduciary Managers or “Common Stockholders”
Public Beneficiaries: Employee, Non-Employee, Municipal Corps, and community organizations as “Public Body”.

19. Building Trust

A. Grantor Beneficiaries

District Grantors/Beneficiaries shall be contributors, donors, and investors under the Board Bylaws.

B. Fiduciary Partners

Fiduciary partners are administrators that I write in equity plans for working capital, non-solicited underwriting, issuing, and management of investment securities under the Board bylaws.

C. Beneficiary Role

Constituents, Employees and Non Employees, or Community Organizations can accept District benefits for the general welfare of the overall public body to influence mental, economic, and environmental development

D. Trustee Objectivity

To provide trust holding for project development in relationship with financial research, underwriting, compliance, issuing, and the management of investment grant offerings. Such as Securities, that are under private/public partnership trust agreements related to projects that include security accounts.

E. Trustee Compensation

Trust Officers

The Trust officers will receive Section 457A.—Nonqualified Deferred Compensation from Certain Tax Indifferent community services (Also: Section 409A; 1.409A-1: Stock Rights) Whether a nonstatutory stock option or a stock-settled stock appreciation right as Trust Officers with respect to common stock of a nonqualified entity is a nonqualified deferred compensation plan subject to taxation under section 457A of the Internal Revenue Code (Code).

The Trust international Service Recipient is a foreign corporation and a nonqualified entity for purposes of section 457A(b).

Service Provider is a limited liability company organized under state law and treated as a Trust partnership for U.S. income tax purposes.

Income of Service Provider is allocated to persons subject to U.S. income tax. Service Provider provides services to Service Recipient. Service Recipient and Service Provider are not at any time treated as a single employer under section 414(b) or (c). As incentive compensation for Service Provider, Service Recipient grants a nonstatutory stock option and a stock appreciation right (in each case, a stock right) to Service Provider, each with respect to a fixed number of common shares of Service Recipient, which qualify as service recipient stock (as defined under Treas. Reg. §1.409A-1(b)(5)(iii)). Each stock right has an exercise price per share that is not less than the fair market value of a common share of Service Recipient on the date of grant, determined pursuant to Treas. Reg. §1.409A-1(b)(5)(iv). The stock rights do not include any feature for the deferral of compensation (as defined under Treas. Reg. §1.409A-

Law and Analysis

Section 457A(a) provides that any compensation that is deferred under a nonqualified deferred compensation plan of a nonqualified entity shall be includible in gross income when there is no substantial risk of forfeiture of the rights to such compensation. Section 457A(b) provides that the term “nonqualified entity” means:

(A) any foreign corporation unless substantially all of its income is:

effectively connected with the conduct of a trade or business in the United States, or
subject to a comprehensive foreign income tax, and

(B) any partnership unless substantially all of its income is allocated to persons other than:

foreign persons with respect to whom such income is not subject to a comprehensive foreign income tax, and
organizations which are exempt from tax under the Code. Section 457A(d)(3)(A) provides that the term “nonqualified deferred compensation plan” has the meaning given such term under section 409A(d),

“except that such term shall include any plan that provides a right to compensation based on the appreciation in value of a specified number of equity units of the service recipient.”

Section 409A(d) provides that the term “nonqualified deferred compensation plan” means any plan that provides for the deferral of compensation other than certain enumerated exceptions. The principal author of this revenue ruling is Gregory Burns of the Office of Associate Chief Counsel (Tax Exempt & Government Entities). For further information regarding this revenue ruling, contact Gregory Burns at (202) 317-5600 (not a toll-free call).

Reasonable compensation The instructions to the Form 1120S, U.S. Income Tax Return for Article S Corporation, state “Distributions and other payments by an S corporation to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for services rendered to the corporation.” The amount of the compensation will never exceed the amount received by the shareholder either directly or indirectly. However, if cash or property or the right to receive cash and property did go to the shareholder, a salary amount must be determined and the level of salary must be reasonable and appropriate. There are no specific guidelines for reasonable compensation in the Code or the Regulations. The various courts that have ruled on this issue have based their determinations on the facts and circumstances of each case.

24. Investing Shareholders

Overall our shareholders are participants that purchase investment securities that are private offers with the community investment plans in exchange for control or preferred benefit; which is associated with a security agreement.

25. Co-Investor Shareholders

Employee benefits differ from investment benefits in that is benefits are received from the principal income deduction based on the investment plans. The employee participants have to make monthly income deductions for the ESOP, as a buy-in to collect income benefits. Employees can benefit from ESOP with low income or minimal credit history. It also helps improve the terms of the income yield or increase the principal that an investment plan is based on. In an employee share agreement with a plan, will require information on both the employee as the primary investment plan participant. Participant individuals will have to provide personal information that allows the sponsor to do a credit check. To hold a line of credit of surety on the Issued shares. The underwriting decision and terms of a plan will be based on the profiles of both the participants and the plan.

If a plan is approved by custodians then standard procedures will apply. Management will prepare a contract that details the terms of the share agreement and the investment, including the interest rate and monthly payment schedule. Both the District Agent and participant must sign the sponsor agreement to allow for funds to be disbursed. Once the sponsor agreement is signed, the primary plan receives the principal Shares in a lump sum. The primary holder of the plan is responsible for making the monthly payments on a payment schedule. If the participant is unable to pay then the participant’s surety obligation comes into effect. The terms of the sponsor agreement will provide details and specific terms on when the participant will begin to be contacted. A participant may be in default if a payment is missed or they may only be responsible when an agreement reaches default. Depending on the agreement’s terms. As a creditor, the Trust may immediately begin to report payment delinquencies to credit bureaus for participants.

26. Special Consolidation and Merger

Upon the consolidation and merger of a District, the local governmental subdivision shall succeed in affirming the District and be vested with all of the rights, revenues, resources, jurisdiction, authority, and powers of the District. The District consolidation and merger shall become effective only if approved by a majority of the electors voting thereon in the local governmental subdivision as a whole and by a majority of the electors voting thereon in the affected District. The district as a private-public ordinance shall be consolidated and merged only if approved by a majority of the electors voting thereon in a private or public election held for that purpose in the local governmental subdivision in which the District’s charter is located.

Note. The rules; relating to state and federal compliance methods may change based on legislative orders, petitions, or investment conditions. Members will be notified of changes.