Series 50: Private Activity Bonds

Private business use test

Greater than 10% of bond proceeds are used to fund a nongovernmental entity

Private security or payment test

Greater than 10% of debt service is paid for or secured by a property used by a private business

More than the lesser of $5 million or 5% of bond proceeds are used to provide a loan to a private business

No more than 2% of proceeds of private activity bonds may be used to pay costs of issuance

Exception: 3.5% of bond proceeds may be used to pay issuance costs f