Tax-Exempt Bonds
A bond, the interest on which is excludable from gross income for federal income tax purposes.
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Special Tax Counsel
An attorney or firm of attorneys engaged to render opinions on the federal and/or state tax exemption for Tax-Exempt Bonds and those aspects of the transaction relating to whether the Tax-Exempt Bonds qualify for federal tax exemption and, in some cases, state tax exemption. In addition, Special Tax Counsel may be engaged to assist the Issuer on certain discrete questions relating to these income tax exemptions, including questions regarding Yield restrictions on investments of unspent Tax-Exempt Bond proceeds and the Rebate requirements under federal income tax law.
Life’s a Party
Learn more about the various parties involved in a municipal securities transaction and their roles.
See Also
Bond Counsel
An attorney or firm of attorneys, frequently retained by the Issuer but sometimes by another party to the transaction, to render an opinion in a bond financing as to the validity and enforceability of the bonds and the treatment of the interest on the bonds under the code and applicable state law.
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Hundreds of Terms and Concepts
Mandatory Sinking Fund Redemption
A type of redemption that applies specifically to bonds issued as term bonds provided in the bond resolution/ordinance and/or an indenture, pursuant to which an issuer or a conduit borrower is required to retire a specific amount of the outstanding principal of the term bond by redemption on specific dates.