Summary of the Final Treasury Regulations Pertaining to State and Local Government Securities (SLGS).
Mondaq Business Briefing › Nbr. 2005, January 2005
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Summary of the Final Treasury Regulations Pertaining to State and Local Government Securities (SLGS).
By Michael L. Wiener (Lakeland)
Originally published August 2005 The Bureau of Public Debt of the United States Treasury Department (the Treasury) has issued final regulations revising its State and Local Government Securities (SLGS) program. The SLGS program was developed by the Treasury to assist state and local governments and other issuers of tax-exempt bonds. The Internal Revenue Code generally prohibits issuers of tax-exempt bonds from earning arbitrage by investing the proceeds of those bonds at a yield that is materially higher than the yield of the bonds. Through the SLGS program, the Treasury offers securities in which bond proceeds may be invested at a yield which complies with that arbitrage restriction. An i...See the full content of this document
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