One of the tests used in establishing whether a bond is a private activity bond (PAB) for tax purposes. The private loan financing test specifically determines whether more than $5 million or 5% of the proceeds of a bond issuer are used to directly or indirectly finance loans to one or more non-governmental persons.
The Bond Basics is a one-stop-shop for answers to your various municipal bond questions. This resource is intended to provide certain foundational information to serve as a resource for those beginning their work in the legal aspects of public finance (“Novices”) as well as more experienced professionals who, from time to time, would like to get back to the basics.
Start your journey with the Bond Basics here!
Background and primers on various topics to help you understand the lay of the land.
Core concepts that will likely come up during the transaction.
Considerations on specific areas of law that may intersect with the bond transaction.
Access a PDF print version of the Bond Basics dated April 3, 2023.