Series 50: Reimbursement Resolution

Reimbursement Resolution

Often, a municipal issuer has to spend money on a bond-backed project before the bonds are actually issued. In these cases, the issuer usually reimburses itself for the expenditure out of bond proceeds. The proceeds earmarked for this purpose are often referred to as a reimbursement bond. The proceeds that are spent for this purpose are referred to as the reimbursement resolution.

According to the IRS, to be reimbursed out of the bond proceeds, the issuer will need to create a Declaration of Official Intent (also called a statement of intent) no later than 60 days after payment of the e