Bonds
Exempt Facilities Bonds
Exempt Facilities Bonds may be issued under certain circumstances for:
- Airports
- Docks and wharves
- Mass commuting facilities
- Sewage facilities
- Solid waste disposal facilities
- Qualified residential rental projects
- Facilities for the local furnishing of electric energy or gas
- Local district heating or cooling facilities
- Environmental enhancements of hydroelectric generating facilities
Generally the requirements with respect to qualified small issue bonds are applicable to exempt facilities bonds except the following:
- $40,000,000 per user limit
- Airports, docks and wharves, and mass commuting facilities must be owned by a governmental unit.
- Exempt Facilities Bonds generally must be used to provide facilities that serve the general public or are available on a regular basis for general public use (sewage and solid waste disposal facilities are treated as qualifying automatically).
- 120% average maturity limit
- public hearing requirement
- 2% issuance cost limit
- Prohibition of direct or indirect federal guarantee
