Private Activity Bond (PAB)
The term used in the Code to describe any bond issued as part of a bond issue that meets both of the private business tests or meets the private loan financing test.
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Host Approval
Approval by the governmental unit in the geographic jurisdiction which contains the site of the project to be financed by a Private Activity Bond (PAB) Issue, as required by TEFRA.
See Also
TEFRA
The acronym for the Tax Equity and Fiscal Responsibility Act of 1982, which applies additional tax requirements and considerations to tax-advantaged bonds.
TEFRA Notice
A notice of a TEFRA hearing, which, under the Treasury Regulations, must be published one time, at least seven days prior to the TEFRA hearing, in a newspaper of general circulation in the geographical jurisdiction of the Issuer of the tax-exempt bonds and in any “host jurisdiction” (or on the appropriate governmental entity’s website).
TEFRA Hearing
A public hearing held by an Issuer, following publication of a TEFRA notice, to give the public an opportunity to comment on a proposed private activity bond (PAB) issue.
TEFRA Approval
The approval of the bond issue by the appropriate governmental unit after a TEFRA hearing.
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Refunded Bond
Outstanding bonds which are paid off with all or a portion of the proceeds of refunding bonds.