Instructions for Form 8038

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Instructions for Form 8038 Powered By Docstoc
					           Department of the Treasury
           Internal Revenue Service

Instructions for Form 8038
(Rev. March 1995)
Information Return for
Tax-Exempt Private Activity Bond Issues
Section references are to the Inter nal Revenue Code unless otherwise noted.

Paperwork Reduction                           for inclusion in yield calculations for       ● Qualified 501(c)(3) bonds
                                              computing arbitrage. Under these              ● Nongovernmental output property
Act Notice                                    regulations, hedges can be entered into       bonds
                                              prior to the issuance of the tax-exempt
We ask for the information on this form                                                     ● Texas Veterans’ Land Bonds, Oregon
to carry out the Internal Revenue laws of     bonds.
                                                                                            Small-Scale Energy Conservation and
the United States. You are required to        Purpose of Form                               Renewable Resource Loan Bonds, and
give us the information. We need it to                                                      Iowa Industrial New Jobs Training Bonds
ensure that you are complying with            Issuers of state or local bonds must
                                                                                            ● All other tax-exempt private activity
these laws.                                   comply with certain information reporting
                                                                                            bonds
   The time needed to complete and file       requirements to qualify for tax
this form will vary depending on              exemption. The information must be            When To File
individual circumstances. The estimated       reported by the issuers about bonds
                                              issued by them during each preceding          File Form 8038 by the 15th day of the
average time is:                                                                            2nd calendar month after the close of
                                              calendar quarter.
Learning about the                                                                          the calendar quarter in which the bond
                                                 Form 8038 is used by the issuers of
law or the form               6 hr., 2 min.                                                 was issued. Form 8038 may not be filed
                                              tax-exempt private activity bonds to
                                                                                            before the issue date and must be
Preparing the form          7 hr., 37 min.    provide the IRS with the information
                                                                                            completed based on the facts as of the
Copying, assembling,                          required by section 149 and to monitor
                                                                                            issue date.
and sending the form                          the requirements of sections 141
                                              through 150.                                  Late filing.—An issuer may be granted
to the IRS                        16 min.                                                   an extension of time to file Form 8038
                                                 For bonds other than private activity
  If you have comments concerning the                                                       under Section 3 of Rev. Proc. 88-10,
                                              bonds, use Form 8038-G, Information
accuracy of these time estimates or                                                         1988-1 C.B. 635, if it is determined that
                                              Return for Tax-Exempt Governmental
suggestions for making this form                                                            the failure to file timely is not due to
                                              Obligations, or Form 8038-GC,
simpler, we would be happy to hear from                                                     willful neglect. Send a late Form 8038
                                              Information Return for Small Tax-Exempt
you. You can write to the Internal                                                          to: Internal Revenue Service,
                                              Governmental Bond Issues, Leases, and
Revenue Service, Attention: Tax Forms                                                       Philadelphia Service Center, Statistics of
                                              Installment Sales, to comply with these
Committee, PC:FP, Washington, DC                                                            Income Unit, P:DA:Unit F-SOI,
                                              requirements.
20224. DO NOT send the form to this                                                         Philadelphia, PA 19255, Stop #335. Type
address. Instead, see Where To File              Bonds described in section 1312(c)(2)      or print at the top of the form, “This
below.                                        of the Tax Reform Act of 1986 to which        Statement Is Submitted in Accordance
                                              the transitional rules in section 1312 or     with Rev. Proc. 88-10.” Attach to the
Note: Use a separate Form 8038 for
                                              1313 apply are not private activity bonds     Form 8038 a letter explaining why Form
each issue.
                                              for purposes of information reporting.        8038 was not submitted to the IRS on
                                              Report them on Form 8038-G or Form            time. Also indicate whether the bond
General Instructions                          8038-GC.                                      issue in question is under examination
                                                 For rebating arbitrage (or paying a        by the IRS. Do not submit copies of the
Changes To Note                               penalty in lieu of arbitrage rebate) to the   trust indenture or other bond
                                              Federal government, use Form 8038-T,          documents.
● The Revenue Reconciliation Act of
                                              Arbitrage Rebate and Penalty in Lieu of
1993:                                                                                       Where To File
                                              Arbitrage Rebate.
  a. Extended permanently the authority
                                                                                            File Form 8038 with the Internal
to issue qualified mortgage bonds and         Who Must File                                 Revenue Service Center, Philadelphia,
qualified small issue bonds.
                                              Form 8038 must be filed by all issuers of     PA 19255.
  b. Created a new category of exempt         the following tax-exempt private activity
facility private activity bonds—qualified     bonds issued after December 31, 1986:         Rounding Off to Whole Dollars
enterprise zone facility bonds for use in
                                              ● Exempt facility bonds, including            You may show the money items on this
empowerment zones and enterprise                                                            return as whole-dollar amounts. To do
                                              qualified enterprise zone facility bonds
communities.                                                                                so, drop any amount less than 50 cents
                                              ● Qualified mortgage bonds
  c. Removed the 25% volume cap for                                                         and increase any amount from 50 cents
a high-speed rail facility bond issue if      ● Qualified veterans’ mortgage bonds
                                                                                            through 99 cents to the next higher
the bond-financed property is                 ● Qualified small issue bonds                 dollar.
governmentally owned.                         ● Qualified student loan bonds
● Regulation sections 1.148-4T(h)(2)(ix)      ● Qualified redevelopment bonds               Definitions
and 1.148-4T(h)(5)(ii)(A) permit an issuer    ● Qualified hospital bonds                    A tax-exempt bond is any obligation on
of tax-exempt bonds to identify a hedge                                                     which the interest is excluded from
                                                            Cat. No. 49974V
gross income under section 103 of the           (d) that does not meet the private            such issue are to be used for
Internal Revenue Code.                          business tests of sections 141(b)(1)          construction expenditures with respect
   Generally, bonds are treated as part of      and (2).                                      to property which is to be owned by a
the same issue if they are issued by the           A qualified small issue bond is part       governmental unit or a 501(c)(3)
same issuer, on the same date, and in a         of an issue not exceeding $1 million of       organization, and (b) all of the bonds
single transaction, or series of related        which 95% or more of the net proceeds         that are part of such issue are qualified
transactions.                                   are to be used to finance (a) land,           501(c)(3) bonds; bonds that are not
                                                (b) depreciable property, or (c) a            private activity bonds; or private activity
   A private activity bond is generally
                                                redemption of a prior issue of (a) or (b).    bonds issued to finance property to be
part of an issue of which (a) more than
                                                See section 144(a). The $1 million limit      owned by a governmental unit or a
10% of the proceeds are to be used for
                                                can be increased to $10 million if an         501(c)(3) organization. In lieu of rebating
any private business use, and (b) more
                                                election is made to take certain capital      any arbitrage that may be owed to the
than 10% of the payment of the
                                                expenditures into account. See                United States, the issuer of a
principal or interest is either secured by
                                                Regulations section 1.103-10(b)(2)(vi).       construction issue may make an
an interest in property to be used for a
                                                                                              irrevocable election to pay a penalty.
private business use (or payments for              A qualified student loan bond is part
                                                                                              The penalty is equal to 11⁄2% of the
such property), or is to be derived from        of an issue of which (a) 90% or more of
payments for property (or borrowed              the net proceeds are to be used to            amount of construction proceeds that do
money) used for a private business use.         make or finance student loans under a         not meet certain spending requirements.
A bond is also considered a private             program of general application to which       See section 148(f)(4)(C).
activity bond if the amount of the              the Higher Education Act of 1965
proceeds to be used to make or finance          applies (see section 144(b)(1)(A) for         Specific Instructions
loans (other than loans described in            additional requirements), or (b) 95% or
section 141(c)(2)) to persons other than        more of the net proceeds are to be used       Part I—Reporting Authority
governmental units exceeds the smaller          to make or finance student loans under        Amended return.—If you are filing an
of 5% of the proceeds, or $5 million.           a program of general application              amended Form 8038, check the
   An exempt facility bond is part of an        approved by the state (see section            amended return box. Complete Part I
issue of which 95% or more of the net           144(b)(1)(B) for additional requirements).    and only those parts of Form 8038 you
proceeds are to be used to finance an              A qualified redevelopment bond is          are amending. Use the same report
exempt facility listed in section 142(a)(1)     generally part of an issue of which 95%       number (line 4) that was used on the
through (12).                                   or more of the net proceeds are to be         original report. (Do not amend the
Note: The Revenue Reconciliation Act of         used to finance certain specified real        estimated amounts previously reported
1993 created a new category of exempt           property acquisition and redevelopment        once the actual amounts are
facility private activity bonds—qualified       in blighted areas. See section 144(c) for     determined.)
enterprise zone facility bonds for use in       other requirements.                           Line 1.—The issuer’s name is the name
empowerment zones and enterprise                   A qualified 501(c)(3) bond is any          of the entity issuing the bonds, not the
communities. Nine empowerment zones             private activity bond meeting the             name of the entity receiving the benefit
and 95 enterprise communities have              following conditions: (a) all property        of the financing.
been designated (by the Secretaries of          financed by the net proceeds of the           Line 2.—An issuer that does not have
HUD and Agriculture) from areas                 bond issue is to be owned by a 501(c)(3)      an EIN should apply for one on Form
nominated by state and local                    organization or a governmental unit, and      SS-4, Application for Employer
governments. Qualified enterprise zone          (b) the bond would not be a private           Identification Number. This form may be
facility bonds may only be issued while a       activity bond if section 501(c)(3)            obtained from most IRS and Social
zone designation is in effect, which            organizations were treated as                 Security Administration offices. File Form
generally will be a period of 10 years.         governmental units and the private            SS-4 according to the instructions on
These bonds are fully subject to the            activity bond definition was applied          that form. If the EIN has not been
state private activity bond limitations.        using a 5% threshold (instead of 10%).        received by the due date for Form 8038,
   A qualified mortgage bond is part of            Restrictions apply to the use of           write “Applied for” in the space for the
an issue (a) of which all proceeds              qualified 501(c)(3) bonds (both hospital      EIN.
(except issuance costs and reasonably           and nonhospital) to provide residential       Line 4.—Number reports consecutively
required reserves) are to be used to            rental housing. See section 145(d).           based on the filing date (not the issue
finance owner-occupied residences,                 A qualified hospital bond is any           date). For example, if the issuer already
(b) that meets the requirements of              qualified 501(c)(3) bond that is part of an   filed two Forms 8038 in the 1995
subsections (c) through (i) and (m)(7) of       issue of which 95% or more of the net         calendar year, the report number for the
section 143, (c) that does not meet the         proceeds are to be used for a hospital.       third Form 8038 would be “PA1995-3.”
private business tests of sections                 A qualified 501(c)(3) nonhospital          Line 6.—Enter the date of issue. This is
141(b)(1) and (2), and (d) for which            bond is a qualified 501(c)(3) bond other      generally the date on which the issuer
repayments of principal on financing            than a qualified hospital bond. An            physically exchanges the bonds for the
provided by the issue (that are received        organization cannot have more than            underwriter’s (or other purchaser’s)
more than 10 years after the date of            $150 million of qualified 501(c)(3)           funds.
issuance) are used to redeem bonds that         nonhospital bonds. See section 145(b).
are part of the issue. Amounts of less                                                        Line 7.—Enter the name of the issue. If
than $250,000 need not be used to               Arbitrage rebate.—Generally, interest         there is no name, please provide other
redeem bonds under requirement (d).             on a state or local bond is not tax           identification of the issue.
                                                exempt unless the issuer of the bond          Line 8.—Enter the CUSIP (Committee on
   A qualified veterans’ mortgage bond          rebates to the United States arbitrage
is part of an issue (a) of which 95% or                                                       Uniform Securities Identification
                                                profits earned from investing proceeds        Procedures) number of the bond with
more of the net proceeds are to be used         of the bond in higher yielding
to provide residences for veterans,                                                           the latest maturity. If the issue does not
                                                nonpurpose investments. See section           have a CUSIP number, write “None.”
(b) for which the payment of the                148(f).
principal and interest is secured by the
general obligation of a state, (c) that            A construction issue is an issue of
meets the requirements of subsections           tax-exempt bonds if (a) at least 75% of
(c), (g), (i)(1), and (l) of section 143, and   the available construction proceeds of
Page 2
Part II—Type of Issue                            Line 15.—Attach a schedule listing the       Line 20—Columns (f) and (g).—Enter
                                                 name and employer identification             the yield only if it has been computed.
Caution: Elections referred to in Part II        number (EIN) for each 501(c)(3)              The yield on the issue is defined under
are made on the original bond                    organization benefiting from these           section 148(h). Generally, the yield is the
documents, not on this form.                     qualified hospital bonds.                    discount rate that, when used to
   You must identify the type of bonds           Line 16.—Enter the total amount of           compute the present value of all
issued by checking the appropriate               qualified nonhospital bonds described in     payments of principal and interest to be
box(es) and entering the corresponding           section 145(b)(2) that are a part of this    paid on the obligation, produces an
issue price of the bonds issued. The             issue. Attach a schedule listing for each    amount equal to the purchase price,
issue price does not include interest            501(c)(3) organization benefiting from       including accrued interest. See
from the date the bonds are dated to             these qualified nonhospital bonds (a) the    Regulations section 1.148-4 for specific
the date of issue (if payable at regular         name of the organization, (b) its EIN,       rules to compute the yield on an issue.
intervals of one year or less).                  (c) the amount of this issue of bonds           If the issue is a variable rate issue,
Line 9g.—After entering the issue price,         benefiting the organization, and (d) the     enter “VR” as the yield of the issue. In
check the appropriate box for the                amount of all other nonhospital bonds        addition, enter the net interest cost
percentage test elected by the issuer at         outstanding as of the date of this issue     percentage (NIC) in column (g). The NIC
the time of issuance of the bonds. Then,         that benefit the organization.               for an issue may be determined by
check the appropriate box to show                Line 17.—Check this box if the bonds         dividing the total interest payments for
whether an election was made for deep            are used to acquire nongovernmental          the issue (increased by any discount and
rent skewing. See Rev. Rul. 94-57,               output property, which is property used      reduced by any premium or accrued
1994-37 I.R.B. 4, for guidance on                by a nongovernmental person in               interest) by the product of the issue
computing the income limits applicable           connection with an output facility (such     price (from line 20, column (c)) and the
to these bonds.                                  as an electric or gas power project).        weighted average maturity (from line 20,
Line 9k.—Proceeds of an exempt bond              Line 18.—Check this box only if none of      column (e)).
may not be used for this type of facility        the other boxes apply. On the space                      a+b-c
if there is a nongovernmental owner of           provided, enter a description of the
                                                                                              NIC =
                                                                                                                xy
the facility unless that owner makes an          bonds, for example, “Texas Veterans’
irrevocable election not to claim                                                             a = total interest payments
                                                 Land Bonds,” “Oregon Small-Scale
depreciation under section 167 or 168,           Energy Conservation and Renewable            b = discount
or to claim any credit against its income        Resource Loan Bonds,” or “Iowa               c = premium or accrued interest
tax with respect to the property financed        Industrial New Jobs Training Bonds.”         x = issue price
with the net proceeds of the issue.
                                                                                              y = weighted average maturity
Line 9m.—Bonds issued to finance                 Part III—Description of Bonds
certain facilities may also qualify as                                                           If the issue is a variable rate issue,
                                                 Line 19.—Enter the maturity date, the
exempt facility bonds if (a) they were                                                        enter “VR” as the NIC of the issue. For
                                                 interest rate (or coupon rate), the issue
permitted as exempt facility bonds                                                            other than variable rate issues, carry the
                                                 price, and the stated redemption price at
under prior law, and (b) they were issued                                                     yield and the NIC out to four decimal
                                                 maturity. If there is more than one
under one of the transitional rules of the                                                    places (e.g., 5.3125%).
                                                 maturity date for bonds that are part of
Tax Reform Act of 1986. These facilities         the issue, enter the information for the
include: a sports facility, as described in                                                   Part IV—Uses of Proceeds of
                                                 bonds with the latest maturity date.         Issue
former section 103(b)(4)(B); a convention        Interest rates should be carried out to
or trade show facility, as described in          three decimal places. If the interest rate   Line 21.—Enter the amount of proceeds
former section 103(b)(4)(C); a parking           is a variable rate, enter “VR.” If the       that will be used to pay interest from the
facility, as described in former section         bonds are reoffered to the public,           date the bonds are dated to the date of
103(b)(4)(D); a pollution control facility, as   determine the issue price based on the       issue.
described in former section 103(b)(4)(F);        reasonably expected reoffering price.        Line 23.—Enter the amount of the
a hydroelectric facility, as described in        The issue price does not include interest    proceeds that will be used to pay bond
former section 103(b)(4)(H); and an              from the date the bonds are dated to         issuance costs, including fees for
industrial park, as described in former          the date of issue (if payable at regular     trustees and bond counsel.
section 103(b)(5). If one of the above           intervals of 1 year or less). The stated
applies, indicate the facility type and                                                       Line 24.—Enter the amount of the
                                                 redemption price at maturity is the          proceeds that will be used to pay fees
then give the specific provision of the          amount payable (without regard to
Act pertaining to the facility on line 9m.                                                    for credit enhancement that are taken
                                                 optional redemption) at maturity             into account in determining the yield on
Line 9n.—Check this box if the bonds             (excluding interest payable at regular       the issue for purposes of section 148(h)
are part of any issue 95% or more of the         intervals of 1 year or less).                (e.g., bond insurance premiums and
net proceeds of which are to be used to          Line 20—Columns (c), (d), and (e).—          certain fees for letters of credit).
provide any enterprise zone facility. See        Enter the issue price, stated redemption
section 1394.                                                                                 Line 25.—Enter the amount of the
                                                 price at maturity, and weighted average      proceeds that will be allocated to such
Line 11.—Check the box if the issuer             maturity in years (e.g., 8.7 years). The     a fund.
has elected, in the bond indenture or            stated redemption price at maturity of
related document, to pay to the United                                                        Line 26.—Enter the amount of the
                                                 the entire issue is the sum of the stated
States the amount described in section                                                        proceeds that will be used to pay
                                                 redemption prices at maturity of each
143(g)(3)(D).                                                                                 principal or interest on any other issue
                                                 bond issued as part of the issue. The
                                                                                              of bonds.
Line 12.—Check the appropriate box on            weighted average maturity is the sum of
line 12 if the bond issue is an exempt           the products of the issue price of each      Part V—Description of Property
issue of $10 million or less for which an        maturity and the number of years to          Financed by Nonrefunding
election under section 144(a)(4) has             maturity (determined separately for each
been made by the issuer at or before             maturity and by taking into account
                                                                                              Proceeds
the time of issuance on the bonds or in          mandatory redemptions), divided by the       Caution: Do not complete this part for
its records. See Regulations section             issue price of the entire issue (from line   qualified student loan bonds, qualified
1.103-10(b)(2)(vi).                              20, column (c)).                             mortgage bonds, or qualified veterans’
                                                                                              mortgage bonds.
                                                                                                                                Page 3
Line 29.—Enter the amount of the               Part VII—Miscellaneous                          private activity bond, the issuer must
nonrefunding bond proceeds received by                                                         allocate a part of its volume cap to the
                                               Line 34.—Under the rules of section
the issuer and used to finance real or                                                         nonqualified amount over $15 million.
                                               147(f), private activity bonds are not tax
depreciable personal property. If the                                                          Line 40a.—Enter the amount of any
                                               exempt unless they receive public
amounts are not available at the time of                                                       bond issued as part of an issue to
                                               approval by certain officials or voter
issuance, make a reasonable proration                                                          finance exempt facilities that are not
                                               referendums. Enter the name of the
between the land, the buildings, and the                                                       subject to the volume cap. These
                                               governmental unit(s) approving the issue.
equipment.                                                                                     facilities include airports, docks,
                                               Enter also the date of approval by the
Note: Under section 147(c), a private          applicable elected representatives and          wharves, environmental enhancements
activity bond is not a qualified bond if       the date of the public hearing. In the          of hydroelectric generating facilities,
25% or more of the proceeds are used           alternative, enter the date of the voter        high-speed intercity rail facilities, and
for the acquisition of land or if any of the   referendum.                                     solid waste facilities. Only 75% of any
proceeds are used to acquire farm land                                                         exempt facility bond for high-speed
                                                  If, under the rules of section 147(f), no
(other than an amount of proceeds not in                                                       intercity rail facilities is not subject to the
                                               approval is needed because the issue
excess of $250,000 to be used by a                                                             volume cap. Beginning on or after
                                               meets an exception to the public
first-time farmer). An exception to this                                                       January 1, 1994, no volume cap applies
                                               approval requirement, write “No approval
general rule is for land acquired for                                                          to a high-speed facility bond issue if all
                                               needed” on line 34. Also enter on line 34
certain environmental purposes. See                                                            the bond-financed property is
                                               the provision of section 147(f) under
section 147(c)(3). Also, a bond is not a                                                       governmentally owned. The applicable
                                               which the issue is excepted (e.g.,
qualified bond if the proceeds are used                                                        solid waste facilities may have to be
                                               “section 147(f)(2)(D)”), or if under any
for the acquisition of used property                                                           governmentally owned. See sections
                                               transitional rule, write “Transitional rule”
(other than land), except in the case of                                                       146(g), 146(h), and 142(b)(1)(B).
                                               and the applicable Act and section on
certain rehabilitations. See section                                                           Line 40b.—If any part of the issue is
                                               line 34.
147(d).                                                                                        issued under a carryforward election,
                                               Line 35.—If any portion of the issue will
   For items that do not readily fit within                                                    enter the amount of the bonds being
                                               qualify for the small issuer exception to
categories 29a, b, c, or d, enter the                                                          issued under that election. Attach a
                                               section 265 contained in section
amount of those proceeds in category                                                           copy of the applicable Form 8328,
                                               265(b)(3), enter the amount of the bonds
29e, Other, and briefly describe them.                                                         Carryforward Election of Unused Private
                                               that will qualify for the exception.
Line 30.—Enter the four-digit Standard                                                         Activity Bond Volume Cap.
                                               Line 36.—Check this box if the issue is
Industrial Classification (SIC) code and                                                       Line 40c.—If any part of the issue is not
                                               a construction issue and an irrevocable
corresponding face amount of each                                                              subject to the volume cap under a
                                               election to pay a penalty in lieu of
project to be financed by the issue. If                                                        transitional rule of the Tax Reform Act of
                                               arbitrage rebate has been made on or
there are more than four projects to be                                                        1986, enter the appropriate section of
                                               before the date the bonds were issued.
financed by the issue, attach a separate                                                       the Act and the amount of the bonds
                                               The penalty is payable with a Form
sheet of paper stating the SIC codes                                                           excepted from the volume cap by that
                                               8038-T for each 6-month period after
and face amount of each project. SIC                                                           rule.
                                               the date the bonds are issued. Do not
codes are developed by the Office of                                                           Line 40d.—Any bond that is issued to
                                               make any payment of penalty in lieu of
Management and Budget and are                                                                  currently refund another bond is not
                                               arbitrage rebate with this form. See Rev.
published in the Standard Industrial                                                           subject to the volume cap to the extent
                                               Proc. 92-22, 1992-1 C.B. 736 for rules
Classification Manual.                                                                         that the amount of such bond does not
                                               regarding the “election document.”
   For the purpose of determining SIC                                                          exceed the outstanding amount of the
                                               Line 37.—Check this box if the issuer
codes where the project fits into more                                                         refunded bond. See section 146(i) and
                                               has identified a hedge on its books and
than one category, the ultimate use of                                                         section 1313(a) of the Tax Reform Act of
                                               records in accordance with Regulation
the facility determines the SIC code                                                           1986. Enter the amount not subject to
                                               sections 1.148-4T(h)(2)(ix) and
number. For example, an investment                                                             the volume cap.
                                               1.148-4T(h)(5)(ii)(A) that permit an issuer
partnership financing a manufacturing                                                          Line 41a.—Enter the amount of the
                                               of tax-exempt bonds to identify a hedge
facility should use the relevant                                                               bonds issued as part of the issue that
                                               for it to be included in yield calculations
manufacturing SIC code, not the                                                                are qualified hospital bonds under
                                               for computing arbitrage.
partnership’s financial activities number.                                                     section 145(c).
Part VI—Description of Refunded                Part VIII—Volume Cap                            Line 41b.—Enter the amount of qualified
Bonds                                          Line 38.—Enter the amount of volume             501(c)(3) bonds issued as part of the
                                               cap allocated to the issuer. Attach a           issue that are qualified nonhospital
Complete this part only if the bonds are       copy of the state certification, if             bonds under section 145(b)(2).
to be used to refund a prior issue of          applicable. The appropriate state official      Line 41c.—Enter the amount of all other
tax-exempt private activity bonds.             must certify that the issue meets the           bonds issued as part of issues that are
Line 31.—Enter the remaining weighted          requirements of section 146 (relating to        outstanding tax-exempt nonhospital
average maturity of the bonds being            volume cap on private activity bonds).          bonds described under section 145(b)(2).
refunded. Determine the remaining              See the regulations under section 149(e).       Lines 41b and c together should
weighted average maturity without              The certification should also include the       generally not exceed $150 million.
regard to the refunding. The weighted          information requested by lines 1 through        Line 42b.—Enter the state limit on
average maturity is determined in the          3 and 5 through 8 of this Form 8038, as         qualified veterans’ mortgage bonds for
same manner as on line 20, column (e).         well as the title of the certifying official.   the calendar year.
Line 32.—Enter the last date on which          Line 39.—Enter the amount of the issue
any of the bonds being refunded will be        subject to the unified state volume cap         Signature
called.                                        for private activity bonds under section        An authorized representative of the
Line 33.—Enter the date of issue of the        146. If, under section 141, the                 issuer must sign Form 8038 and any
bonds being refunded. If more than a           nonqualfied amount of an issue exceeds          applicable certification. Also print the
single issue of bonds will be refunded,        $15 million, but does not exceed the            name and title of the person signing
enter the date of issue of each of the         amount that would cause a bond which            Form 8038.
issues.                                        is part of an issue to be treated as a


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