TITLE

Illinois Authority First to Settle With IRS Over FHLB-Backed Debt

AUTHOR(S)
Shields, Yvette
PUB. DATE
April 2003
SOURCE
Bond Buyer;4/11/2003, Vol. 344 Issue 31613, p1
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The Illinois Development Finance Authority approved the conversion of 5.3 million dollars of Coburn Steel Products Inc. (CSP) tax-exempt industrial revenue bonds to a taxable investment as part of its settlement agreement with the U.S. Internal Revenue Service (IRS). The IRS issued a preliminary determination that interest on the 2000 bond issue, sold on behalf of CSP, which was taxable because of the deal's use of a standby letter of credit from the Federal Home Loan Bank of Chicago. Under the settlement reached with the IRS, the issuer would have to pay a tax of 34,000 dollar. Under the settlement agreement investors may tender their bonds at a re-marketing scheduled for today, when the agreement is effective.
ACCESSION #
9611064

 

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