Series 50: Cost Of Issuance Of Private Activity Bonds

Cost of Issuance of Private Activity Bonds

Issuers are also limited as to how much of the proceeds of a private activity bond may be spent on the costs of issuance. The costs of bond issuance include but are not limited to:

• • Underwriter’s discount
• • Legal fees
• • Financial advisor fees
• • Credit rating agency fees
• • Trustee fees
• • Registrar fees
• • Accounting fees
• • Printing costs for all documents
• • Public approval costs
• • Feasibility study costs

No more than 2% of the proceeds from private activity bonds may be used to pay for the costs of issuance. The only exceptions to this rule are qualified mortgage revenue bonds or qualified veterans’ mortgage revenue bonds whose proceeds are not greater than $20 million, in which case up to 3.5% of the bond proceeds may be used to pay issuance costs. However, funds oth