Settlement Allows Arkansas Hospital Bonds to Stay Tax-Exempt

Newman, Emily
December 2004
Bond Buyer;12/16/2004, Vol. 350 Issue 32031, p5
Trade Publication
The article gives information about the Arkansas Hospital Equipment Financing Authority, which has reached a settlement with the Internal Revenue Service (IRS) to protect the tax-exempt status of a $51 million pooled variable-rate bond deal that was alleged to have violated the arbitrage rules of the tax code partly because of yield burning that occurred in conjunction with a guaranteed investment contract used to invest the proceeds of the issue. The IRS gave three reasons for asserting that the bonds were arbitrage bonds, according to a statement released by the Little Rock-based issuer yesterday.


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