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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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.
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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 Approval
The approval of the bond issue by the appropriate governmental unit after a TEFRA hearing.
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 issue, as required by TEFRA.
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Negotiated Sale
The sale of a new issue of bonds by an issuer through an exclusive agreement with an underwriter or underwriting syndicate selected by the issuer.