Arbitrage
Profit from differences in markets. All tax-advantaged bonds are subject in one way or another to the arbitrage requirements, which are contained in Section 148 of the Code and the Treasury Regulations that go along with it.
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Arbitrage Certificate
A certificate (sometimes called a “Tax Certificate,” a “non-arbitrage certificate” or a “use of proceeds certificate”) is a certificate of a responsible officer of the Issuer and/or Borrower certifying compliance with the limitations on Arbitrage imposed on the Tax-Exempt Bonds by the Code and as to certain facts and circumstances in effect at the time of delivery of the Tax-Exempt Bonds concerning the investment of the Bond proceeds and their use, forming a basis to conclude that the Tax-Exempt Bonds are not Arbitrage Bonds. Bond Counsel relies on this certificate in rendering its opinion.
Get it in Writing
Learn more about the various documents involved in a municipal securities transaction.
See Also
Arbitrage Bonds
Tax-exempt bonds violating yield restrictions imposed by Section 148 of the Internal Revenue Code (IRC) and Treasury Regulations promulgated thereunder.
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Industrial Development Bonds
Term used to describe certain private activity bonds (PABs) under the 1954 Code that is still occasionally used.