Remediating Excess Private Benefit Occurring after Issuance of the Bonds
In circumstances where both the bonds would be private activity bonds if a certain action is taken , there are several options that can help issuers achieve compliance with federal tax laws , including contract renegotiation to meet safe harbors or taking a remedial action ( see Bracewell ’ s Issue Spot on “ Remediating Private Business Use of Governmental Bonds ”). With this in mind , we encourage issuers that have identified potential noncompliance to contact bond counsel to discuss these concerns and the options that may be available to protect the tax status of the bond issue .
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Key Contacts
Victoria N . Ozimek Partner Austin
Brian P . Teaff Partner Houston bracewell . com