• News,

Public Finance Perspective: Rays of Hope for Public Works Financing

Two recent IRS releases offering relief and promoting financial stability in uncertain economic times address regulatory exceptions for bond guarantees and the treatment of Demand Deposit State and Local Government…

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  • CLE Eligible

Arbitrage and Rebate, Real World Examples [The Essentials 2023]

Discussion of hypotheticals that involve the application of certain federal tax laws relating to arbitrage rebate and the exceptions to the arbitrage rebate.

  • Webinars
  • CLE Eligible

Arbitrage and Rebate, The Basics [The Essentials 2023]

Overview of general arbitrage concepts, arbitrage rebate requirements, and the application of the various exceptions to the arbitrage rebate rules.

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…

Rebate

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.