Bona Fide Debt Service Fund. To the extent that the Certificate Fund qualifies as a Bona Fide Debt Service Fund, Investment earnings in the account cannot be taken into account in computing arbitrage rebate.
Bona Fide Debt Service Fund. To the extent that the Lease Revenue Fund qualifies as a Bona Fide Debt Service Fund, Investment earnings in the fund cannot be taken into account in computing arbitrage rebate and yield reduction amounts (1) with respect to such portion that meets the 6-month, 18- month or 2-year spending exception, or (2) for a given Certificate Year, if the gross earnings on the Lease Revenue Fund for such Certificate Year are less than $100,000. If the average annual debt service on the Certificates does not exceed $2,500,000, the $100,000 earnings test may be treated as satisfied in every Certificate Year.
Bona Fide Debt Service Fund. To the extent that the Debt Service Fund qualifies as a Bona Fide Debt Service Fund, Investment earnings in the fund cannot be taken into account in computing arbitrage rebate (1) with respect to such portion that meets the 6-month, 18-month or 2-year spending exception, or (2) for a given Bond Year, if the gross earnings on the Debt Service Fund for such Bond Year are less than $100,000. If the average annual debt service on the Bonds does not exceed $2,500,000, the $100,000 earnings test may be treated as satisfied in every Bond Year.
Bona Fide Debt Service Fund. To the extent that the Sinking Funds in the aggregate qualify as a Bona Fide Debt Service Fund, investment earnings in those accounts cannot be taken into account in computing arbitrage rebate.
Bona Fide Debt Service Fund. Debt service payments on the Loan Agreement will be paid from the Pledged Revenues of the Governmental Unit deposited to the Finance Authority Debt Service Account created with respect to the Loan Agreement. Because the Pledged Revenues of the Governmental Unit for any year will exceed debt service on the Loan Agreement, it is assumed that current debt service paid by the Governmental Unit for deposit in the Finance Authority Debt Service Account will be derived entirely from the current Pledged Revenues. The Finance Authority Debt Service Account will be depleted at least once a year except for an amount not to exceed the greater of the earnings on the Finance Authority Debt Service Account for the immediately preceding bond year or one-twelfth (1/12th) of debt service on the Loan for the immediately preceding bond year. The Governmental Unit has not created or established, nor does it expect to create or establish, any debt service fund, redemption fund, replacement fund, sinking fund or other similar fund which is reasonably expected to be used to pay principal or interest on the Loan Agreement or pledged therefor, except for the Finance Authority Debt Service Account.
Bona Fide Debt Service Fund. To the extent that the Series 2018 Account of the Lease Revenue Fund qualifies as a Bona Fide Debt Service Fund, Investment earnings in the account cannot be taken into account in computing arbitrage rebate and yield reduction amounts (1) with respect to such portion that meets the 6-month, 18-month or 2-year spending exception, or (2) for a given Certificate Year, if the gross earnings on the Series 2018 Account of the Lease Revenue Fund for such Certificate Year are less than $100,000. If the average annual debt service on the Certificates does not exceed $2,500,000, the $100,000 earnings test may be treated as satisfied in every Certificate Year.
Bona Fide Debt Service Fund. Amounts deposited from time to time in any Bona Fide Debt Service Fund will be used to pay Debt Service within 13 months after the amounts are so deposited, such period being the Temporary Period for such amounts.
Bona Fide Debt Service Fund. (a) The Governmental Lender Note is a speciaL limited obligation of the Governmental Lender payable from payments of principal and interest that will be derived lrom the Funding Loan and possibly certain other funds (the "Revenues") pledged pursuant to the Funding Loan Agreement. The Borrower expects to make payments on the Funding Loan using current revenues of the Borrower and will not set aside moneys for future payments on the Funding Loan.
Bona Fide Debt Service Fund. The Debt Service Fund (except the Reserve Amount therein) is to be used primarily to achieve a proper matching of revenues with principal and interest payments on the GO Bonds (as defined below) within each Bond Year. The Debt Service Fund (except the Reserve Amount therein) will be depleted at least once each Bond Year (except for a reasonable carryover amount not to exceed the greater of (a) the earnings thereon for the immediately preceding Bond Year or (b) one-twelfth of the principal and interest payments on the GO Bonds for the immediately preceding Bond Year). Thus, the Debt Service Fund (except the Reserve Amount therein) is a Bona Fide Debt Service Fund with respect to the GO Bonds and such amounts therein are to be invested at an unrestricted yield for a temporary period not to exceed thirteen months.
Bona Fide Debt Service Fund. Subject to the limitation below, amounts earned on the investment of amounts in a Bona Fide Debt Service Fund are not taken into account in computing arbitrage rebate (the “BFDSF exception”). See Section 148(f)(4)(A)(ii) of the Code.
(i) $100,000 Gross Earnings Limitation to BFDSF Exception. However, unless certain spending requirements (otherwise not relevant to the Bonds) are met with respect to the Bonds, the BFDSF exception applies only when the gross earnings on the Bona Fide Debt Service Fund for the Bond Year are less than $100,000 if:
(a) the issue includes any private activity bond,
(b) the average maturity of the issue is less than five years, or
(c) the rate of interest on any of the obligations of the issue varies during the term of the issue.
(ii) Deemed Compliance with $100,000 Gross Earnings Limitation. An issue with an average annual debt service not in excess of $2,500,000 may be treated as satisfying the above $100,000 gross earnings limitation. Treas. Reg. § 1.148-3(k).
