What is an allonge, and when can it be used?
An allonge is simply an amendment to an existing note or bond that is used when the governmental entity and the owner of the note or bond mutually agree to extend the term, adjust the interest rate or modify some other provision of the original issue. An allonge is most commonly used to extend the term of temporary financing when permanent financing has not been obtained as quickly as initially planned. 7. What are Private Activity Bonds? Private Activity Bonds are securities issued by governmental entities that provide a certain percentage of the benefit to a private entity. Securities of this type were previously known as Industrial Revenue Bonds. The Code contains guidelines for determining when a security must be treated as a Private Activity Bond, at which point an analysis must be made as to whether the bond is still eligible for tax-exempt status. If 5% or more of the benefit, use or capacity of a capital improvement project is dedicated to, or designed to benefit, a private ent
