B

bank qualified bonds

• bank qualified bonds
• 3.5 Tax Treatment of Municipal Bonds
  A bondholder’s “after tax” return on a bond depends in part upon how interest on the bond is treated in calculating the bondholder’s income for federal and state income tax
• 4.11 Bank Qualified Bonds
  The ability for banks to benefit from tax exempt bonds under the Tax Code.

bankruptcy

• 2.3.2 Credit Enhancement and Liquidity Support
  Use of credit enhancements and liquidity guarantees to lower risk and attract investors.
• 2.3.2.3 Letters of Credit
  Liquidity Support: Letter of Credit
• 2.4.8.1 Events of Default
  Different types of defaults
• 3.3.6.1 Public Enterprise Revenue Bonds
• D.1 Public Agencies and Bankruptcy

basis risk

• 2.3.3 Interest Rate Swaps and Synthetic Structures
  Changing the substantive financial terms of a debt from a fixed rate obligation to a variable rate

Blue Sky laws

• BLUE SKY LAWS/BLUE SKY SURVEY OR MEMORANDUM
• 6.5.2 Securities Laws in Other States

bond anticipation notes (BANs)

• Bond Anticipation Notes (BANs)
• Note
• 2.2.2.2 Debt Service Reserve Fund Surety Bonds
  Credit enhancement: Debt service reserve fund
• 3.7.3 Bond Anticipation Notes and Grant Anticipation Notes
  Bond anticipation notes (BANs) are notes issued in advance, generally several years in advance, of the expected date of long-term financing for a project.
• B.1.5.2 Bond Anticipation Notes

bond counsel

• bond counsel
• co-bond counsel
• i.4.1.1 Pre-Issuance Phase
• 2.4.11 Amendments
  Procedures for amending bond documents and related debt security documents.
• 4.8.3.2 Guaranteed Investment Contracts
• 4.9.1 Rebate Exceptions
• 4.13 Tax Risk
• 5.2 Competitive Sales
  The sale of debt using a competitive pricing approach.
• 5.3 Negotiated Public Offerings
  The sale of debt using a negotiated approach to pricing.
• 5.4.1 Direct Costs of Issuance
• 6.1.1 Antifraud Rules
  Statements by municipal issuers to investors, or potential investors, and even statements to the public generally, if likely to be heard and relied upon by the securities market
• 6.2.2 Attorneys
• 6.3.2 Contents of the Official Statement
• 8.3 Post-Issuance Federal Tax Law Requirements
  Compliance with tax covenants contained in the Tax Code is required while the bonds are outstanding in order to maintain the bonds’ “tax exempt” status.
• 8.4 Continuing Disclosure
  Public agencies take on certain responsibilities to file information regularly when they issue municipal securities, including an annual report and notices of certain events.
• 9.1 A Team Approach to Investing Bond Funds
  Designing and implementing an investment strategy that maximizes earnings, while ensuring the safety and liquidity of invested funds and complying with federal tax law, is
• 9.4.2 Investments Specific to Bond Funds

• arbitrage rebate and yield restriction considerations
  • 9.5.1 Arbitrage Rebate and Yield Restriction
• bond funds
  • 2.4.3 Funds and Accounts; Flow of Funds
    How funds will flow from borrower to lender.
  • 6.2.2 Attorneys
• investments
  • i.4.2.7 Decision #7 – Evaluate municipal market opportunities to use debt financing
  • 2.4.7 Investments
    Decisions regarding the investment of proceeds
  • 6.4 Other Marketing Activities and Other Public Statements
  • 9.2 Types of Funds Available for Investment
  • 9.4 Common Types of Investments for Bond Funds
  • 9.5.2 Investment Considerations
    Issuer considerations regarding investment of bond funds.
  • 9.6 Investment Review and Oversight
    The importance of review and oversight in the management of bond fund investments.
• opinion of bond counsel
  • 6.3.3 Disclosure Standards and Guidance
    Sources of guidance as to what may be desirable to include in an OS.
  • 8.3 Post-Issuance Federal Tax Law Requirements
    Compliance with tax covenants contained in the Tax Code is required while the bonds are outstanding in order to maintain the bonds’ “tax exempt” status.
• types of fund
  • 9.2 Types of Funds Available for Investment

bond funds management

• Bond Fund
• 8.1 A Framework for Managing Bond Funds
  An approach to managing bond proceeds.

• accounting
  • 8.2.4 Accounting Records
    Record keeping essential to maintaining tax exempt status of bonds.
• annual reports
  • 8.5.1 Audited Financial Statements
• audit review
  • 8.2.7 Audit Review
    Record keeping essential to maintaining tax exempt status of bonds.
• bond documents
  • 2.4 Other Common Document Provisions
    Structural features of debt obligatins often contained in bond documents.
  • 5.4.1 Direct Costs of Issuance
  • 5.5.1 Documentation Used in Private Placement Transactions
  • 8.1.1 Bond Documents
    Bond documents that contain provisions that control the administration of bond funds.
  • 9.3.2 Bond Document Provisions
    Role of bond documents in the investment of bond funds.
  • 9.4.1 Permitted Investments
    Types of investment vehicles that may be used to invest bond funds.
• changes in use of bond financed property
  • 8.4 Continuing Disclosure
    Public agencies take on certain responsibilities to file information regularly when they issue municipal securities, including an annual report and notices of certain events.
• compliance checklists
  • 8.2.6 Compliance Checklists
    Record keeping essential to maintaining tax-exempt status of bonds.
• compliance program
  • i.4.1.3 Post-Issuance Phase
  • i.4.2.6 Decision #6 – Decide whether the debt will be tax exempt
  • i.4.5.2 Requirement #2 – The debt must finance a qualifying project and satisfy ongoing requirements and limitations regarding the use of the project
  • i.5.1.1 Debt Management Policies
  • i.5.2.1 Proposition 39 General Obligation Bonds
  • 4 Federal and State Tax Law Requirements
  • 8 Post-Issuance Debt Management Requirements, Including Tax Compliance and Ongoing Disclosure Obligations
    Best practices regarding the development and administration of guidelines, policies, procedures, and plans to track and report on the use of bond funds in compliance with
  • 8.2 Elements of Post-Issuance Compliance
    Recommendations on a post issuance compliance program.
  • 8.3.1 Post-Issuance Tax Compliance Programs
  • 8.3.2 Tracking and Allocating Bond Proceeds
  • 8.3.7 Changes in Use of Bond-Financed Property
  • 8.4.4 Incentives for Compliance
    Failure to comply with the requires of SEC Rule 15c2-12 must reported in any subsequent public offering.
  • 8.5.2 Informal Statements and Websites
  • 8.5.4 Managing Disclosure Risk
    Approaches to managing the risk improper disclosure.
  • 9.1 A Team Approach to Investing Bond Funds
    Designing and implementing an investment strategy that maximizes earnings, while ensuring the safety and liquidity of invested funds and complying with federal tax law, is
  • 9.5.1 Arbitrage Rebate and Yield Restriction
  • 9.6 Investment Review and Oversight
    The importance of review and oversight in the management of bond fund investments.
• continuing disclosure
  • 8.5 Other Disclosures to the Market
    Other forms by which issuers may communicate to market participants
• event notices
  • i.5.2.2 Marks- and Mello-Roos Bonds
  • 8.5.2 Informal Statements and Websites
• internal control
  • i.4.1.3 Post-Issuance Phase
  • i.5.1.1 Debt Management Policies
  • i.5.2.5 Reports to the California Debt Investment and Advisory Commission
  • 5.4.1 Direct Costs of Issuance
  • 8.2.1 Establishing a Compliance Program
    Record keeping essential to maintaining tax exempt status of bonds.
  • 8.2.7 Audit Review
    Record keeping essential to maintaining tax exempt status of bonds.
  • 9.6 Investment Review and Oversight
    The importance of review and oversight in the management of bond fund investments.
• investing bond funds
  • 4.8.2.1 Categories of Proceeds
  • 4.8.2.2 Expenditure of Gross Proceeds
  • 9.1 A Team Approach to Investing Bond Funds
    Designing and implementing an investment strategy that maximizes earnings, while ensuring the safety and liquidity of invested funds and complying with federal tax law, is
  • 9.3 Investment Authority and Controlling Documents
    Investment authority and controlling documents regarding the investment of bond funds.
  • 9.4 Common Types of Investments for Bond Funds
  • 9.5 Legal and Investment Considerations
  • 9.6 Investment Review and Oversight
  • The importance of review and oversight in the management of bond fund investments.
• maintaining tax-exempt status
  • i.3.2.2 Legal Responsibilities Under the IRS Tax Code
  • i.4.2.6 Decision #6 – Decide whether the debt will be tax exempt
  • i.4.5.2 Requirement #2 – The debt must finance a qualifying project and satisfy ongoing requirements and limitations regarding the use of the project
  • i.4.5.3 Requirement #3 – Manage the arbitrage rules
  • i.4.5.4 Requirement #4 – Adhere to procedural and other rules
  • i.5.2 California Review and Reporting Requirements on Bonds
  • 2.4.5.1 Debt Covenants
  • 2.4.11 Amendments
    Procedures for amending bond documents and related debt security documents.
  • 3.3.9 Conduit Revenue Bonds
    “Conduit financings” involve bonds issued by governmental entities to finance projects for nongovernmental borrowers.
  • 3.5 Tax Treatment of Municipal Bonds
    A bondholder’s “after tax” return on a bond depends in part upon how interest on the bond is treated in calculating the bondholder’s income for federal and state income tax
  • 4 Federal and State Tax Law Requirements
  • 8.2.2 Maintaining Tax-Exempt Status
    Record keeping essential to maintaining tax exempt status of bonds.
  • 8.2.3 Record keeping and Reporting
    Record keeping essential to maintaining tax exempt status of bonds.
  • 8.3 Post-Issuance Federal Tax Law Requirements
    Compliance with tax covenants contained in the Tax Code is required while the bonds are outstanding in order to maintain the bonds’ “tax exempt” status.
  • 9.5.1 Arbitrage Rebate and Yield Restriction
• managing disclosure risk
  • 8.5.4 Managing Disclosure Risk
    Approaches to managing the risk improper disclosure.
• monitoring investment income and arbitrage compliance
  • 8.3.4 Monitoring Investment Income and Arbitrage Compliance
• monitoring use of bond financed property
  • 8.3.3 Monitoring Use of Bond-Financed Property
• record keeping and reporting
  • 8.2.3 Record keeping and Reporting
    Record keeping essential to maintaining tax exempt status of bonds.
• record keeping and retention
  • 8.3.1 Post-Issuance Tax Compliance Programs
  • 8.3.6 Recordkeeping and Retention
• securities law compliance
  • i.3.2 Legal Responsibilities of Issuers of Municipal Securities
• statutory authority
  • 1.1.1 Statutory Authority to Borrow
    All public agencies are subject to the California Constitution and the powers granted to them or that are essential to their purpose.
  • 1.5.2 Charter City Financing
    How the authority of a charter city may affect its debt financings
  • 2.1 Overview
    Factors determining structure, including issuer, term, source of repayment, and debt limits.
  • 2.3.2.4 Lines of Credit and Standby Bond Purchase Agreements
    Liquidity Support: Lines of Credit
  • 9.3.1 Statutory Authority
    Controlling statutory authority for investment of bond funds.
• tax law compliance
  • i.3.2.2 Legal Responsibilities Under the IRS Tax Code
  • i.4.5.3 Requirement #3 – Manage the arbitrage rules
  • 4 Federal and State Tax Law Requirements
  • 8.3 Post-Issuance Federal Tax Law Requirements
    Compliance with tax covenants contained in the Tax Code is required while the bonds are outstanding in order to maintain the bonds’ “tax-exempt” status.
• tracking and allocating bond proceeds (“See bond proceeeds”) written policies and procedures
  • i.4.1.3 Post-Issuance Phase
  • i.4.5.3 Requirement #3 – Manage the arbitrage rules
  • i.5.1 Managing Your Agency’s Debt Filings
  • i.5.2.1 Proposition 39 General Obligation Bonds
  • i.5.2.2 Marks- and Mello-Roos Bonds
  • i.5.2.3 Conduit Issuer Reporting
  • 5.4.1 Direct Costs of Issuance
  • 6.1.2 Governing Board Responsibilities
    Role of governing board in complying with federal securities laws.
  • 6.3.3 Disclosure Standards and Guidance
    Sources of guidance as to what may be desirable to include in an OS.
  • 8.2.5 Written Procedures
    Record keeping essential to maintaining tax-exempt status of bonds.
  • 8.3.1 Post-Issuance Tax Compliance Programs
  • 8.5.4 Managing Disclosure Risk
    Approaches to managing the risk improper disclosure.
  • 9.3.3 Investment Policies
    Role of investment policies in the investment of bond funds.

bond insurance

• Bond Insurance
• Credit Enhancement
• 2.3.2 Credit Enhancement and Liquidity Support
  Use of credit enhancements and liquidity guarantees to lower risk and attract investors.
• 2.3.2.1 Bond Insurance
  Credit enhancement: Bond insurance
• 2.3.2.2 Debt Service Reserve Fund Surety Bonds
  Credit enhancement: Debt service reserve fund
• 4.4.2 Costs of Issuance
  Cost of issuance pursuant to the Tax Code.
• 4.7.2.5 Cost of Issuance Limit
  Requirements of private activity bonds
• 5.1.1 Sale Methods – Competitive or Negotiated Sale
• 5.4.1 Direct Costs of Issuance
• 6.3.4 Transactions with Credit or Liquidity Support
  The OS must include a description of the terms of that credit or liquidity support and disclosure regarding the credit or liquidity provider
• 8.3.4 Monitoring Investment Income and Arbitrage Compliance

bond insurance premium

• 2.3.2.1 Bond Insurance
  Credit enhancement: Bond insurance
• 2.3.2.2 Debt Service Reserve Fund Surety Bonds
  Credit enhancement: Debt service reserve fund
• 4.4.2 Costs of Issuance
  Cost of issuance pursuant to the Tax Code.
• 4.7.2.5 Cost of Issuance Limit
  Requirements of private activity bonds
• 4.8.3 Yield
  The yield on a bond issue defined.
• 5.4.1 Direct Costs of Issuance

bond proceeds

• i.4.5.2 Requirement #2 – The debt must finance a qualifying project and satisfy ongoing requirements and limitations regarding the use of the project
• i.4.5.3 Requirement #3 – Manage the arbitrage rules
• i.5.1.1 Debt Management Policies
• i.5.2.5 Reports to the California Debt Investment and Advisory Commission
• 2.3.1.1 Mandatory Redemption
  Mandatory redemption of principal
• 2.4.1 Application of Proceeds
  How the proceeds of debt may be applied.
• 4.4.2 Costs of Issuance
  Cost of issuance pursuant to the Tax Code.
• 4.4.3 Capitalized Interest
  Capitalized interest pursuant to the Tax Code.
• 4.4.4 Reserves
  Reserves pursuant to the Tax Code.
• 4.4.5 Reimbursement of Prior Expenditures
  Reimbursement of Prior Expenditures pursuant to the Tax Code.
• 4.6 Governmental Bonds/Private Activity Bonds
  The opportunity to use government bonds to finance capital improvements that may generate private activity or benefit.
• 4.8.1 General Background on Arbitrage Yield Restriction
• 4.8.2 Bond Proceeds
  Different arbitrage rules apply to different categories of bond proceeds
• 4.8.2.1 Categories of Proceeds
• 4.8.5 Yield Restriction; Yield Reduction Payments
  Payments made to the U.S. Treasury when the yield on unexpended bond proceeds exceed limits in Tax Code.
• 4.9 Arbitrage Rebate
  The requirement that arbitrage earning must be rebated to the federal government.
• 8.2.2 Maintaining Tax-Exempt Status
  Record keeping essential to maintaining tax exempt status of bonds.

• expenditure of gross proceeds
  • 4.8.2.2 Expenditure of Gross Proceeds
• investment earnings
  • 9.3.2 Bond Document Provisions
    Role of bond documents in the investment of bond funds.
• investment of bond proceeds (See” bonds fund management- investing bond funds”)
• issue sizing and term
  • 4.4.1 Issue Sizing and Term
    Limits on issue size and term pursuant to the Tax Code.
• private bussiness use
  • 4.6.1 Private Business Use
    One of several tests of private activity or benefit.
• reverse fund
  • 4.8.4.3 Reserve Funds
• tracking and allocating bond proceeds
  • 8.3.2 Tracking and Allocating Bond Proceeds
  • 8.3.4 Monitoring Investment Income and Arbitrage Compliance
  • 8.3.6 Recordkeeping and Retention

bond purchase agreement

• BOND PURCHASE CONTRACT OR AGREEMENT
• i.4.1.2 Issuance Phase
• 5.3.3 Doc umentation for a Negotiated Public Offering
• 5.3.4 Pricing of a Negotiated Public Offering
• 7.1.2 Report of Final Sale

broker-dealer

• BROKER-DEALER
• 5.3.3 Documentation for a Negotiated Public Offering
• 5.7.2 Targeting Investors
• 6.2.1 Municipal Advisors and Underwriters