Tax-Exempt Bonds -- Post-Issuance Compliance

“The bonds are tax exempt.  What’s the problem?”

Chances are you already understand that to stay tax-exempt, municipal bonds have certain requirements that must continue to be met.  Parker Bond Consulting L.L.C. specializes in services that help issuers with those obligations.

Sections 103 and 141-150 of the Internal Revenue Code – and especially the arbitrage rules found in section 148 – represent some of the most difficult and complex tax law to be found in all of the Code.  When you consider the special rules applicable to the calculation of bond yield, the application of the “universal cap,” fund allocations, swaps, “GICs,” “YRP,” and more, the expertise needed to correctly identify the issuer’s arbitrage liability, if any, is best left to the professionals in the field.  And then there are other considerations, as well – private business use, “private payment,” limitations on bonds held by “substantial users” of the financed facility, capital expenditure limitations on “small issue IDBs,” and more.  You don’t want to walk this road alone.

Parker Bond can help.