4.7.2.3 Useful Life Limitations

4.7.2.3 Useful Life Limitations

The average maturity of an issue of qualified private activity bonds may not exceed 120% of the average reasonably expected economic life of the facilities being financed with such an issue. Note that, as described above, there is a similar 120% test applied for purposes of determining whether the bonds (including governmental bonds) are outstanding longer than necessary.