Bond
Evidence of the borrowing by an issuer and a debt instrument for tax purposes.
bond-basics
Issue
An “issue” of Bonds is a grouping of Bonds for purposes of the federal tax rules. Bonds that are part of different Issues will be analyzed separately. Two or more Tax-Exempt Bonds are part of the same Issue if all of the following conditions are met: (i) the Tax-Exempt Bonds are issued at substantially the same time (sold less than 15 days apart), (ii) the Tax-Exempt Bonds are sold pursuant to the same plan of financing, and (iii) the Tax-Exempt Bonds are reasonably expected to be paid from the same source of funds, determined without regard to guarantees from parties unrelated to the obligor. Taxable Bonds and Tax-Exempt Bonds are never part of the same Issue.
See Also
Tax-Exempt Bonds
A bond, the interest on which is excludable from gross income for federal income tax purposes.
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Term of the Week
Pre-Closing
A meeting of all the parties prior to the closing, often held the day before the closing.