Arbitrage
Profit from differences in markets. All tax-advantaged bonds are subject in one way or another to the arbitrage requirements, which are contained in Section 148 of the Code and the Treasury Regulations that go along with it.
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Bond Year
For tax purposes, a twelve-month period which ends on a date selected by the Issuer for the purpose of the Arbitrage rules. The first and last Bond Year of a Bond Issue may be shorter than a twelve-month period (and as a practical matter typically will be). If no date is selected by the Issuer before the earlier of the final Maturity Date of the Bond Issue or the date that is five years after the issuance date of the Bonds, the Bond Years end on each anniversary of the issuance date of the Bonds and on the final Maturity Date.
Preparing Bonds
Learn about over various terms and concepts that may arise while preparing a bond issue.
See Also
Maturity Date
The date upon which the principal of a bond becomes due and payable to the bond owner.
Bona Fide Debt Service Fund
Fund primarily used to achieve proper match of revenues and debt service within each bond year.
Start with the Bond Basics
Hundreds of Terms and Concepts
Trustee
A commercial bank or trust company with trust powers which acts in a fiduciary capacity for and on behalf of the bondholders by entering into an indenture with the issuer of the bonds.