Arbitrage Rebate and Yield Restriction

We do more than just complete arbitrage rebate and yield restriction calculations. Our procedures include reviewing the operation of the funds, monitoring temporary periods, and projecting future rebate liabilities. We ensure filing requirements are met for each bond and track all IRS deadlines to guarantee timely report completion. In addition, we always contact issuers to discuss our reports, recommendations, and the action plan for every bond.

Procedures

• Review of bond documents to determine the most beneficial way to apply the regulations.
• Resolve any issuance questions which may arise with bond counsel.
• Determine the optimal calculation schedule and review with the issuer.
• Calculate the bond yield.
• Compute the rebate amount and determine that yield restrictions are met.
• Monitor temporary periods and review the fund operation for each bond issue.
• Complete IRS Form 8038-T, used by issuers to make any necessary rebate payments.
• Complete IRS Form 8038-R, used by issuers to apply for a refund of a previous rebate payment.

Reports

• Arbitrage rebate report – Prepare a report in an easily understood format, which describes the procedures performed and the amount of any rebate owed.
• Summary – Provides a condensed summary of the arbitrage rebate status of the bonds, including recommendations related to managing the bonds.