Arbitrage Consulting Services

Description

SCOPE OF WORK: For purposes of this document, the following terms will be defined as follows:“Arbitrage”                             Arbitrage occurs when Okaloosa County, FL invests its bond proceeds at a yield higher than the overall borrowing yield on its bond issue. As it relates to tax-exempt bonds, Arbitrage is the ability to invest proceeds received from the sale of tax-exempt debt in higher-yielding taxable securities. “Arbitrageur”                          The entity providing the arbitrage rebate services described in this ITQ. “Arbitrage Rebate”                 Arbitrage Rebate is the payment of Arbitrage earned on the investment bond proceeds to the Internal Revenue Service in accordance with the requirements of Section 148 of the Internal Revenue Code and as defined by U.S. Treasury Department regulations. “Trust Indenture”                    The document by the terms of which an entity issues or guarantees or provides for the issue or guarantee of debt obligations secured by a security interest and in which an entity is appointed as trustee for the holders of the debt obligation issued, guaranteed or provided for under it. “Non-arbitrage Certificate”    The key tax document for a bond issue which describes the rebate requirements associated with the debt service fund. The Non-arbitrage Certificate is part of the bond transcript.