Proceeds of Bonds Used for Reimbursement - FI-59-89 (TD 8394-Final )

This regulation clarifies when the allocation of bond proceeds to reimburse expenditures previously made by an issuer of the bond is treated as an expenditure of the bond proceeds. The issuer must express a reasonable official intent, on or prior to the date of payment, to reimburse the expenditure in order to assure that the reimbursement is not a device to evade requirements imposed by the Internal Revenue Code with respect to tax exempt bonds.

The latest form for Proceeds of Bonds Used for Reimbursement - FI-59-89 (TD 8394-Final ) expires 2023-05-31 and can be found here.