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Other Bonding and Debt Instruments

Build America Bonds (BABs)

The U.S. Treasury announced on April 3, 2009 its Guidance on Build America Bonds. The guidance is designed to enable state and local governments to use the new program. It describes the two types of BABs, the procedures for applying for the refundable credit, and reporting information.

In addition, the U.S. Treasury announced on June 13, 2009 its guidance and notice of allocation of Recovery Zone Economic Development Bonds, which are considered a third variation of Build America Bonds with a deeper Federal subsidy and different program requirements regarding eligible uses of proceeds for qualified economic development purposes within recovery zones.

Section 1531 of the American Reinvestment and Recovery Act of 2009 codifies Build America Bonds into law.

The Securities Industry and Financial Markets Association (SIFMA) and U.S. Treasury have had additional information and resources on the program.

The U.S. Treasury released an Analysis of Build America Bonds and Savings on May 16, 2011.

Guidance on Section 311 of the NHS Act: Payment to States for Bond and Other Debt Instrument Financing
Section 311 of the NHS Act of 1995 replaced 23 U.S.C. 122 and expanded the Federal eligibility of bond related costs. The new section 122 makes bond related costs eligible for Federal reimbursement on any Federal-aid project eligible under title 23, U.S.C. The definition of construction is also revised in 23 U.S.C. 101 to include a reference to bond related costs. This document provides related Guidance on Federal payments to states for bond and other debt instrument financing costs.

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