September 24, 2021

Volume XI, Number 267

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Permanent School Fund (PSF) Available for Charter School Financings in Texas

On September 16, 2013, the Internal Revenue Service (IRS) proposed new arbitrage regulations that codify the 500% limit on Permanent School Fund (PSF) guaranteed bonds originally announced in Notice 2010-5 and would permit the use of the PSF to guarantee charter school bonds. Further communications with the IRS confirm that issuers may elect to apply these provisions immediately. The Texas Education Agency will need to complete their rulemaking process to fully implement the program and begin providing the PSF Guarantee for Charter School financings. Under Texas law, charter school bonds must have an investment grade rating, among other requirements, to obtain a PSF guarantee.

Copyright © 2021, Hunton Andrews Kurth LLP. All Rights Reserved.National Law Review, Volume III, Number 268
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About this Author

Thomas A. Sage, Tax Finance Attorney, Andrews Kurth, Law Firm
Partner

Tom counsels both issuers and underwriters in almost every aspect of tax-exempt financing and infrastructure development. Tom emphasizes his practice in the realm of school finance, municipal finance, infrastructure, and urban development. He regularly serves as bond counsel for several cities, counties, and school districts as well as special utility districts. Tom is the foremost authority on educational finance.

In the area of traditional finance, Tom has been instrumental in guiding a number of clients through financing structures that avoid any negative impact on the tax base....

713-220-3833
Gregg Jones, Andrews Kurth Law Firm, Tax Attorney
Partner

Gregg has delivered tax opinions as bond counsel or special tax counsel in connection with financings for states, cities, counties, school districts and other political subdivisions. He has participated in all facets of the tax analysis associated with the issuance of qualified 501(c)(3) bonds, qualified hospital bonds, qualified student loan bonds and qualified small issue bonds.

Gregg also has extensive experience in IRS audits of tax-exempt bonds, representing issuers and other interested parties.

713-220-4479
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