Verification Report

A document that verifies the mathematical accuracy of information needed to support bond counsel’s conclusions that an advance refunding bond issue is a tax-exempt bond issue and/or that refunded bonds…


A requirement imposed under the Code to pay to the Internal Revenue Service an amount equal to the arbitrage earned on tax-exempt bonds.

Minor Portion

The amount of gross proceeds of a tax-exempt bond issue that may be permanently invested at a materially higher yield than the yield on the tax-exempt bonds equal to the…

Escrow Trustee (Agent)

The custodian of funds held in the escrow fund and responsible for holding and managing the escrow fund, including any investments in the escrow fund, up to and including the…

Escrow Fund

Trust account established in the escrow deposit agreement that holds cash, investments, usually obligations of the federal government or, sometimes, federal agencies, or both, all of which are pledged to…

Escrow Deposit Agreement

Document used to defease refunded bonds by establishing an escrow fund during a refunding.

Bond Year

For tax purposes, a twelve-month period which ends on a date selected by the issuer for the purpose of the arbitrage rules.

Arbitrage Certificate

Certificate of a responsible officer of the Issuer and/or Borrower certifying compliance with the limitations on Arbitrage imposed on the Tax-Exempt Bonds by the Internal Revenue Code.

Arbitrage Bonds

Tax-exempt bonds violating yield restrictions imposed by Section 148 of the Internal Revenue Code (IRC) and Treasury Regulations promulgated thereunder.


Profit from differences in markets. All tax-advantaged bonds are subject in one way or another to the arbitrage requirements, which are contained in Section 148 of the Code and the…

US Treasury Building in Washington DC
  • News

Extraordinary Measures Start: No SLGS Suspension

Treasury Secretary Yellen announced the U.S. had reached its statutory debt limit and would implement extraordinary measures. Notably absent— any mention of SLGS suspension.

  • Comments

Comments on Proposed SLGS Rule Changes

Response to proposed regulations from the Bureau of Fiscal Services (BFS) pertaining to the State and Local Government Series (“SLGS”) securities program.