Series 50: Spending Exceptions

Spending Exceptions

There are also exceptions to the rebate rule. The first type of exception is referred to as spending exceptions. 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,