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Schedule K
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Information on Tax-Exempt Bonds
SchKMediumBullet Complete if the organization answered "Yes" to Form 990, Part Ⅵ, line 24a. Provide descriptions,
explanations, and any additional information in Part Ⅵ.
SchKMediumBullet Attach to Form 990.
SchKMediumBulletGo to www.irs.gov/Form990 for instructions and the latest information.
OMB No. 1545-0047
2021
Open to Public
Inspection
Name of the organization
MERCYHURST UNIVERSITY
 
Employer identification number
25-0965430
Part Ⅰ
Bond Issues
(a) Issuer name (b) Issuer EIN (c) CUSIP # (d) Date issued (e) Issue price (f) Description of purpose (g) Defeased (h) On
behalf of
issuer		 (i) Pool
financing
Yes No Yes No Yes No
A 2016 Series CEHEBA
  		25-1536711 295435CD1 12-01-2016 25,618,931 See Part VI X     X   X
B 2017 Series CEHEBA
  		25-1536711 295435CE9 07-01-2017 30,485,977 See Part VI   X   X   X
Part Ⅱ
Proceeds
A B C D
1 Amount of bonds retired .................. 8,055,000 290,000    
2 Amount of bonds legally defeased .............. 2,255,000 0    
3 Total proceeds of issue .................. 25,783,755 30,909,499    
4 Gross proceeds in reserve funds ............. 2,116,343 2,785,364    
5 Capitalized interest from proceeds ............. 0 0    
6 Proceeds in refunding escrows ............... 0 0    
7 Issuance costs from proceeds ............... 339,088 609,708    
8 Credit enhancement from proceeds ............. 0 0    
9 Working capital expenditures from proceeds ............. 0 0    
10 Capital expenditures from proceeds ............. 0 24,498,146    
11 Other spent proceeds ............. 0 0    
12 Other unspent proceeds ............. 0 0    
13 Year of substantial completion ............. 2018
Yes No Yes No Yes No Yes No
14 Were the bonds issued as part of a current refunding issue of tax-exempt
bonds (or, if issued prior to 2020, a current refunding issue)? ........ 		X     X        
15 Were the bonds issued as part of an advance refunding issue of taxable
bonds (or, if issued prior to 2020, an advance refunding issue)? ........ 		X     X        
16 Has the final allocation of proceeds been made? .......... X   X          
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? .................. X   X          
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50193E
Schedule K (Form 990) 2021

Schedule K (Form 990) 2021
Page 2
Part Ⅲ
Private Business Use
A B C D
Yes No Yes No Yes No Yes No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? .............   X   X        
2 Are there any lease arrangements that may result in private business use of bond-financed property? ...............   X   X        
3a Are there any management or service contracts that may result in private business use of bond-financed property? ............. X   X          
b If "Yes" to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property? X   X          
c Are there any research agreements that may result in private business use of bond-financed property? .............   X   X        
d If "Yes" to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property?                
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government ....SchKMediumBullet 0 % 0 %    
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government ......... SchKMediumBullet 0 % 0 %    
6 Total of lines 4 and 5 ............. 0 % 0 %    
7 Does the bond issue meet the private security or payment test? ...   X   X        
8a Has there been a sale or disposition of any of the bond-financed property to a nongovernmental person other than a 501(c)(3) organization since the bonds were issued?.............   X   X        
b If "Yes" to line 8a, enter the percentage of bond-financed property sold or disposed of. ..        
c If "Yes" to line 8a, was any remedial action taken pursuant to Regulations sections 1.141-12 and 1.145-2? .............                
9 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under
Regulations sections 1.141-12 and 1.145-2? ........ 		X   X          
Part Ⅳ
Arbitrage
A B C D
Yes No Yes No Yes No Yes No
1 Has the issuer filed Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate? ...   X   X        
2 If "No" to line 1, did the following apply? ....
a Rebate not due yet? ....... X   X          
b Exception to rebate? ........   X   X        
c No rebate due? ......... X   X          
If "Yes" to line 2c, provide in Part Ⅵ the date the rebate
computation was performed ......
3 Is the bond issue a variable rate issue? .....   X   X        
Schedule K (Form 990) 2021

Schedule K (Form 990) 2021
Page 3
Part Ⅳ
Arbitrage (Continued)
A B C D
Yes No Yes No Yes No Yes No
4a Has the organization or the governmental issuer entered into a qualified hedge with respect to the bond issue?   X   X        
b Name of provider ..........  
  		 
  		 
  		 
 
c Term of hedge .........        
d Was the hedge superintegrated? ......                
e Was the hedge terminated? ........                
5a Were gross proceeds invested in a guaranteed investment contract (GIC)?   X   X        
b Name of provider ..........  
  		 
  		 
  		 
 
c Term of GIC .........        
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? ........                
6 Were any gross proceeds invested beyond an available temporary period? X     X        
7 Has the organization established written procedures to monitor the requirements of section 148? ... X   X          
Part Ⅴ
Procedures To Undertake Corrective Action
--------------------------------------------------------------------------------------------------------------- A B C D
Yes No Yes No Yes No Yes No
Has the organization established written procedures to ensure that violations of federal tax requirements are timely identified and corrected through the voluntary closing agreement program if self-remediation is not available under applicable regulations? X   X          
Part Ⅵ
Supplemental Information. Provide additional information for responses to questions on Schedule K. (See instructions).
Return Reference Explanation
Schedule K, Part I, Column f-12/01/2016 25,618,931 2016 Series CEHEBA On December 1, 2016, the University issued University Revenue Refunding Bonds through the City of Erie Higher Education Building Authority (Authority). The 2016 Bond proceeds were used to finance a project consisting of (a) current refunding of all of the 2004 Series A and B Bonds; (b) the advance refunding of all of the 2008 Bonds; (c) the funding of a debt service reserve fund; and (d) the financing of the costs relating to the issuance of the 2016 Bonds.
Schedule K, Part I, Column f-07/01/2017 30,485,977 2017 Series CEHEBA On July 1, 2017, Mercyhurst Student Housing, LLC, a Pennsylvania limited liability company, issued $31,435,000 Revenue Bonds through the Authority. The 2017 Bond proceeds were used to finance a project consisting of (a) financing all or a part of the costs of acquiring, developing, constructing, furnishing, and equipping an approximately 148,000 square foot residence hall comprising approximately ninety (90) suites containing approximately 350 beds, and related student facilities, on approximately four acres of land owned by and on the Erie campus of the University, (b) funding capitalized interest, (c) funding a debt service reserve fund, and (d) pay all or a portion of the cost of issuance of the Series 2017 Bonds.
Schedule K, Part II, Line 2-12/01/2016 25,618,931 2016 Series CEHEBA During the year ended May 31, 2022, the University sold its North East campus operations which included a building that had been financed through bonds that were subsequently refinanced with the issuance of the 2016 Bonds. As a result, the University defeased a portion of the bonds by placing $2,441,825 of the proceeds from the sale of the North East campus into an escrow account to provide for future debt services. The defeasance resulted in a decrease in the outstanding balance of the 2016 bonds by $2,255,000. The balance of the escrow deposit of $186,825 is recorded as additional deposits with trustees and will be amortized through 2037.
Schedule K, Part II, Line 3-12/01/2016 25,618,931 2016 Series CEHEBA The difference between Part II, Line 3, A and Part I, A, column e is cumulative interest earnings on the bond trust accounts for the Fiscal Year ending May 31, 2022.
Schedule K, Part II, Line 3-07/01/2017 30,485,977 2017 Series CEHEBA The difference between Part II, Line 3, B and Part I, B, column e is cumulative interest earnings, net of expenses on the bond trust accounts for the Fiscal Year ending May 31, 2022.
Schedule K, Part IV, Line 2c-12/01/2016 25,618,931 2016 Series CEHEBA The date that the rebate computation was performed December 1, 2016 to May 31, 2021. As of the interim computation date of May 31, 2021, the report indicated that there was no rebate liability. The first IRS five-year computational due date is 12/01/2021 for the 2016 Series Bonds.
Schedule K, Part IV, Line 2c-07/01/2017 30,485,977 2017 Series CEHEBA The date that the rebate computation was performed July 7, 2017 to May 31, 2021. As of the interim computation date of May 31, 2021, the report indicated that there was no rebate liability. The first IRS five-year computational due date is 7/01/2022 for the 2017 Series Bonds.
Schedule K, Part IV, Line 6-12/01/2016 25,618,931 2016 Series CEHEBA Part of the 2016 Series Bond Issue was an advanced refunding of the 2008 Series Bonds, which were placed in a yield restricted escrow fund, until the call date of September 15, 2018. A final rebate computation was performed through the call date of September 15, 2018, which indicated no cumulative rebate liability as of the September 15, 2018 Final Rebate Computation Date.
Schedule K (Form 990) 2021

Additional Data


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