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Due Diligence

A term referring to the inquiries and review conducted by either the Underwriter and Underwriter’s Counsel or Bond Counsel or Special Tax Counsel in connection with the issuance of Bonds. The intent of the Due Diligence process conducted by the Underwriter and Underwriter’s Counsel is to make sure that all material facts about the Issuer, any Conduit Borrower, the project being financed, the revenues to be used to repay the Bonds, and other financial information are fully disclosed to potential investors in the Offering Document and that there have been no material omissions or misstatements of fact. The intent of the Due Diligence process conducted by Bond Counsel or Special Tax Counsel is to make sure the appropriate use of Tax-Exempt Bond proceeds and related matters that enable Bond Counsel or Special Tax Counsel to deliver the Bond Counsel Opinion.


See Also

Bond Counsel Opinion

A written opinion of nationally recognized bond counsel, delivered to the issuer at the closing, addressing the validity of the bonds and whether and to what extent interest on the bonds is exempt from federal income taxes and from income or other taxes, if any, imposed by the state.

Underwriter

A securities broker or dealer that purchases bonds from an issuer and resells them to investors.

Hudson Yards Rail Yards

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TEFRA Hearing

A public hearing held by an Issuer, following publication of a TEFRA notice, to give the public an opportunity to comment on a proposed private activity bond (PAB) issue.