Examples of Available Construction Proceeds in a sentence
The Issuer (at the direction of the Concessionaire) of a Construction Issue may irrevocably elect on or before the issue date to pay a penalty (the “1-1/2 percent penalty”) to the United States of America in lieu of the obligation to pay the rebate amount on Available Construction Proceeds upon failure to satisfy the spending requirements of the two-year expenditure schedule.
A Construction Issue is treated as meeting the Rebate Requirement for Available Construction Proceeds under this exception if those proceeds are allocated to expenditures for governmental purposes of the Series 2014 Bonds in accordance with the following schedule (the “two-year expenditure schedule”), measured from the issue date: (1) at least 10 percent within six months; (2) at least 45 percent within one year; (3) at least 75 percent within 18 months; and (4) 100 percent within two years.
For each spending period, underexpended proceeds equal the amount of Available Construction Proceeds required to be spent by the end of the spending period, less the amount actually allocated to expenditures for the governmental purposes of the issue by that date.
The Issuer (at the direction of the Concessionaire) may elect on or before the issue date to exclude from Available Construction Proceeds the earnings on any reasonably required reserve or replacement fund.
The 1-1/2 percent penalty continues to apply at the end of each spending period and each semiannual period thereafter until the earliest of the following: (i) the termination of the penalty under Section 1.148-7(l) of the Regulations, (ii) the expenditure of all of the Available Construction Proceeds or (iii) the last stated final maturity date of the Series 2014 Bonds and any bonds that refund the Series 2014 Bonds.