4.4.2 Costs of Issuance

Costs incurred in connection with issuing bonds, such as underwriters’ discounts or fees, bond counsel and other legal fees, consultants’ fees, trustee’s fees, rating agency fees, and other similar fees and costs, may be financed with proceeds of the bonds. However, most qualified private activity bonds (as described further below) are subject to a restriction that no more than 2% of the proceeds may be used to pay costs of issuance. Tax exempt bond proceeds may also be used to pay municipal bond insurance premiums, letter of credit fees, liquidity fees, and certain fees associated with interest rate swaps or similar hedging instruments.