Memorandum

INFORMATION: Revised GARVEE Bond Guidance

March 25, 2004

Sandra L. Weisman
Director, Office of Budgedt and Finance

HABF-40

Associate Administrators
Chief Counsel
Directors of Field Services
Resource Center Managers
Division Administrators
Federal Lands Highway Division Engineers

We are attaching an update to the GARVEE Bond Guidance replacing the guidance issued in August 2000. The only significant changes are contained in the sections on "Project Approval" clarifying the use of bond proceeds and other Federal funds on the same project, the section on "Eligible Debt Financing Instruments and Bond-Related Costs" removing arbitrage rebates as an eligible cost and adding an explanation regarding the eligibility of a debt service reserve fund and the section on "Transportation Conformity" updating to current policy.

If you have any questions relating to the guidance, please contact Max Inman at (202) 366-2853.

Attachment:

Garvee Bond Guidance

cc: Resource Center Managers