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Article: Enforcement: Mississippi Development Bank's $96M in Bonds Deemed Taxable.
- Article from:
- The Bond Buyer
- Article date:
- July 3, 2006
- Author:
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The Mississippi Development Bank's $93.6 million of Series 1999 special obligation bonds have been declared taxable by the Internal Revenue Service because the bank lacked reasonable expectations to use the proceeds to originate loans, according to the agency.
The development bank is appealing the IRS' May 30 proposed adverse determination and arguing that since the bonds were sold it has originated almost $125 million in loans to local governmental units in Mississippi, it said in a material event notice filed Thursday with the nationally recognized municipal securities information repositories.
The issue consisted of $90 million of Series A and $3.6 ...