Bond
Evidence of the borrowing by an issuer and a debt instrument for tax purposes.
Bonds issued by an Issuer to finance all or a portion of its own project. Unlike Private Activity Bonds, Governmental Bonds or Governmental Purpose Bonds are not defined in the Code but are terms commonly used to refer to municipal Bonds that are not Private Activity Bonds. Governmental Bonds do not satisfy both the Private Business Tests and the Private Loan Financing Test.
Learn more about how various aspects of tax law intersect with municipal securities.
Evidence of the borrowing by an issuer and a debt instrument for tax purposes.
Any use of Bond proceeds in a trade or business carried on by a person other than a governmental unit. The private business tests are used in part to establish whether a bond is a private activity bond (PAB).
The term used in the Code to describe any bond issued as part of a bond issue that meets both of the private business tests or meets the private loan financing test.
A requirement contained in Section 146 of the Code that private activity bonds (PAB) (with certain exceptions) issued as tax-exempt bonds obtain an allocation of volume cap from the state in which the project is located prior to the issuance of the bonds.