bond-basics

Purpose Investment

Investment property acquired to carry out the purpose of a governmental program for which the Bonds are issued (i.e., conduit loans, mortgage notes, mortgage-backed Securities and student loan obligations).

See Also

Program Investment

Purpose investments that meet certain rules set forth in Treasury Regulations Section 1.148-1(b).

Hudson Yards Rail Yards

Start with the Bond Basics

120% Rule

Rule outlined in Section 147(b) of the code that states private activity bonds are not tax-exempt bonds if the weighted average maturity of the bond issue exceeds 120% of the average reasonably expected economic useful life of the facilities financed with the bond proceeds.