The issuer expects that its compliance with the procedures outlined above will prevent any violations of Federal tax rules pertaining to the issuer's outstanding tax exempt governmental bonds (including any refunded bonds). However, if the issuer discovers a potential violation through its ongoing monitoring or otherwise, it will determine in conjunction with its bond counsel whether a violation actually exists. If it is found that a violation actually exists, the issuer will determine whether: a) any remedial actions are available; or b) a voluntary closing agreement with the Internal Revenue Service is appropriate. Common examples of violations are as follows:
A. Inappropriate Time Purchase: Failure to purchase zero percent (0%) SLGs at the appropriate time.
B. Use Sale, Change: Subsequent sale or other change in use of bond financed property.
C. Private Use: Private (nonexempt) use of bond financed property resulting in overall private use not expected at closing and in excess of the ten percent (10%) (or 5 percent) de minimis limit for the particular bond issue.
D. Post Issuance Change: Post issuance change in the terms of the bonds without proper reissuance analysis and actions, if necessary.
E. Extinguishment Of Bonds: Post issuance purchase of the bonds by the issuer, a borrower of bond proceeds or a related party to either, resulting in an extinguishment of the bonds without proper analysis and actions, if necessary.
F. Failure To Pay Rebate: Failure to pay rebate in a timely manner.
G. Improper Reimbursement: Improper reimbursement of expenditures (too old or not capital). (2019 Compilation)