p. 736, item number 2. Insert weighted before average maturity and average reasonably expected.
p. 736, n. 17. Insert as second paragraph:
Although this small amount of property may be used in a private use, there is no de minimus amount of private ownership permitted for the bond proceeds. This ownership requirement applies for the entire life of the bond issue, although many bond counsel have taken the position that the sale of property for minimal value at the end of its useful life is permitted. Also, the matter of treatment of leasehold improvements is a frequent question in light of this ownership requirement. Often a leasehold improvement can be financed with proceeds of tax-exempt bonds if the length of the leasehold interest is longer than the expected useful life of the bond financed assets, or if the property can be removed from the premises if the leasehold interest terminates early.
p. 736, n. 20. Insert following existing material:
Reg. § 1.148-2(f)(2)(ii) provides that “investments of amounts held in a reasonably required reserve or replacement fund may ...