Article: IRS: Texas Health Agency's $61M of ARS Under Audit.(Washington)

Byline: Peter Schroeder

WASHINGTON - The Internal Revenue Service is auditing $61.3 million of auction-rate securities issued in 2005 by the Coastal Bend Health Facilities Development Corp. of Corpus Christi, Tex.

The corporation disclosed the IRS action in a material event notice filed late Monday with the Municipal Securities Rulemaking Board's Electronic Municipal Market Access system, saying the audit is a random check for compliance with the federal tax requirements.

The bonds are part of $796.58 million of auction-rate securities and variable-rate debt that were issued by the corporation, the Harris County Health Facilities Development ...

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