bond-basics

63-20 Corporation

A nonprofit public benefit corporation organized under state law that meets the requirements of Internal Revenue Service Revenue Ruling 63-20 to qualify as an Issuer of Tax-Exempt Bonds.

Dive Deeper on Tax Issues

Learn more about how various aspects of tax law intersect with municipal securities.


See Also

Issuer

A state, political subdivision, agency or authority that borrows money through the sale of bonds or other securities. 

Political Subdivision

A division of any state or local governmental unit which is a municipal corporation or which has been delegated the right to exercise a sufficient part of the sovereign power of the unit.

Shamberg Powers

The powers identified in Commissioner v. Shamberg’s Estate, 144 F.2d 998 (2d Cir. 1944) as the powers used to identify what is a political subdivision of a state or local governmental entity in the United States, specifically, the power of eminent domain, the power to tax, and the police power.

Hudson Yards Rail Yards

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Escrow Fund

Trust account established in the escrow deposit agreement that holds cash, investments, usually obligations of the federal government or, sometimes, federal agencies, or both, all of which are pledged to the payment of the debt service of the refunded bonds.