Series 50: Spending Exceptions

Spending Exceptions

There are three exceptions, known as spending exceptions, to the rebate requirement. If any of these exceptions are met, then the issuer is not required to rebate arbitrage profits.

Municipalities are considered to have met the rebate requirements if any of the following hold:

• • All of the bond proceeds are spent on qualified purposes within six months of the bond issuance.
• • All of the bond proceeds are spent on qualified purposes within 18 months of the bond issuance, using the following schedule:
• » 15% of the bond proceeds are spent within six months
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