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 Bond issued by a state, certain agencies or authorities or Political Subdivisions to make or purchase loans (including mortgage or other owner financing) with respect to single-family or multifamily residences. As indicated by the name, a principal source of security for the Bonds is mortgages on the financed properties. A Mortgage Revenue Bond may also refer to Bonds issued to finance the construction or acquisition of a public utility.
Learn more about the various types of municipal obligations you may encounter.
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.
Agreement used in the purchase of a bond issue by a syndicate to set out the rights, obligations and purchase commitments of each underwriter; to authorize one or more underwriters to act as manager(s); and to give the manager(s) authority to act on behalf of the others in connection with the bond issue.