[Code of Federal Regulations]
[Title 26, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.148-9A]

[Page 759]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.148-9A  Arbitrage rules for refunding issues.

    (a) through (c)(2)(ii)(A) [Reserved]. For guidance see Sec. 1.148-
9.
    (c)(2)(ii)(B) Permissive allocation of non-proceeds to earliest 
expenditures. Excluding amounts covered by Sec. 1.148-9(c)(2)(ii)(A) 
and subject to any required earlier expenditure of those amounts, any 
amounts in a mixed escrow that are not proceeds of a refunding issue may 
be allocated to the earliest maturing investments in the mixed escrow, 
provided that those investments mature and the proceeds thereof are 
expended before the date of any expenditure from the mixed escrow to pay 
any principal of the prior issue.
    (d) through (h)(4)(v) [Reserved]. For guidance see Sec. 1.148-9.
    (h)(4)(vi) Exception for refundings of interim notes. Section 1.148-
9(h)(4)(v) need not be applied to refunding bonds issued to provide 
permanent financing for one or more projects if the prior issue had a 
term of less than 3 years and was sold in anticipation of permanent 
financing, but only if the aggregate term of all prior issues sold in 
anticipation of permanent financing was less than 3 years.

[T.D. 8538, 59 FR 24045, May 10, 1994. Redesignated by T.D. 8718, 62 FR 
25507, May 9, 1997]