Series 50: Private Loan Financing Test

Taken from our Series 50 - MSRB Municipal Advisor Representative Qualification Exam

Definition of the term Private Loan Financing Test...

a test used to help determine if a bond is a private activity bond. The private loan financing test states that if more than $5 million or 5% of the bond proceeds, whichever is less, is used to provide a loan to a private business, then the bond is a private activity bond.


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