Instructions for Schedule K

Instructions for Schedule K

(Form 990)

(Rev. December 2024)

Supplemental Information on Tax-Exempt Bonds

Section references are to the Internal Revenue Code unless

otherwise noted.

What's New

Continuous-use form and instructions.

Schedule K (Form 990) and these instructions have been

converted from an annual revision to continuous use. Both the

form and these instructions will be updated only as needed.

Future Developments

For the latest information about developments related to

Schedule K (Form 990) and its instructions, such as legislation

enacted after they were published, go to IRS.gov/Form990.

General Instructions

Note. Terms in bold are defined in the Glossary of the

Instructions for Form 990, Return of Organization Exempt From

Income Tax.

Purpose of Schedule

Schedule K (Form 990) is used by an organization that files Form

990 to provide certain information on its outstanding liabilities

associated with tax-exempt bond issues. Usually, a bond issue

associated with an exempt organization will consist of qualified

501(c)(3) bonds, but all types of tax-exempt bonds benefiting the

organization must be reported. A qualified 501(c)(3) bond issue

consists of bonds, the proceeds of which are used by a section

501(c)(3) organization to further its charitable purpose.

Generally, applicable requirements for qualified 501(c)(3) bonds

under section 145 include the following.

• All property financed by the bond issue is to be owned by a

section 501(c)(3) organization or a state or local

governmental unit.

• At least 95% of the net proceeds of the bond issue are used

by either a state or local governmental unit or a section

501(c)(3) organization in activities that don't constitute

unrelated trades or businesses (determined by applying

section 513).

If the organization has one or more related organizations

(for example, parent and subsidiary relationship), it must

complete Schedule K (Form 990) consistent with the filing(s) of

its related organization(s). The same liability shouldn't be

reported by more than one of the related organizations. For

example, if a parent organization issues a tax-exempt bond and

loans or allocates that issue to a subsidiary organization, only

one organization (either the parent or subsidiary) should report

the liability on Form 990 and the Schedule K. Similarly, if a parent

organization loans or allocates the proceeds of a tax-exempt

bond issue to a group of subsidiary organizations, only one level

(either the parent or the group of subsidiaries) should report the

liability on Form 990 and the Schedule K. For this purpose, if the

subsidiary organizations report the liability, each subsidiary

should only report the amount it is loaned or allocated.

Jan 14, 2025

If the organization's bond liability relates to a pooled financing

issue, the organization should report with respect to the amount

of the issue that the organization is loaned or allocated.

Use Part VI to provide additional information or comments

relating to the information provided on this schedule. For

example, use Part VI to provide additional information or

comments about the reporting of liabilities by related

organizations. In addition, use Part VI to describe certain

assumptions that are used to complete Schedule K (Form 990)

when the information provided isn't fully supported by existing

records.

Who Must File

An organization that answered “Yes” on Form 990, Part IV,

Checklist of Required Schedules, question 24a, must complete

and attach Schedule K to Form 990. This means the

organization reported an outstanding tax-exempt bond issue

that:

• Had an outstanding principal amount in excess of $100,000

as of the last day of the tax year, and

• Was issued after December 31, 2002.

Up to four separate outstanding tax-exempt liabilities can be

reported on each Schedule K (Form 990). The schedule can be

duplicated if needed to report more than four tax-exempt

liabilities. If the organization isn't required to file Form 990 but

chooses to do so, it must file a complete return and provide all of

the information requested, including the required schedules.

Period Covered

The organization can complete this schedule for any tax-exempt

liability using the same period as the Form 990 with which it is

filed. Alternatively, the organization can use any other 12-month

period or periods selected by the organization and that, used

consistently for a tax-exempt liability for purposes of this

schedule and computations, is in accordance with the

requirements under sections 141 through 150. Under this

alternative, the organization can use different 12-month periods

for each tax-exempt liability reported. The alternative period(s)

must be specifically described in Part VI.

Specific Instructions

Definitions

Tax-exempt bond. This is an obligation issued by or on

behalf of a governmental issuer for which the interest paid is

excluded from the holder's gross income under section 103. For

this purpose, a bond can be in any form of indebtedness under

federal tax law, including a bond, note, loan, or lease-purchase

agreement.

Bond issue. This is an issue of two or more bonds that are

sold at substantially the same time, sold pursuant to the same

plan of financing, and payable from the same source of funds.

See Regulations section 1.150-1(c).

Defeasance escrow. This is an irrevocable escrow

established in an amount that, together with investment

earnings, is sufficient to pay all the principal of, and interest and

Instructions for Schedule K (Form 990) (Rev. 12-2024) Catalog Number 20378D

Department of the Treasury Internal Revenue Service www.irs.gov

call premium on, bonds from the date the escrow is established.

See Regulations section 1.141-12(d)(6). A defeasance escrow

can be established for several purposes, including the

remediation of nonqualified bonds when the defeasance

provides for redemption of bonds on the earliest call date.

However, for purposes of completing this schedule, an escrow

established with proceeds of a refunding issue to defease a

prior issue is referred to as a refunding escrow.

Governmental issuer. A state or local governmental unit

that issues tax-exempt bonds.

Gross proceeds. This generally means any sale proceeds,

investment proceeds, transferred proceeds, and replacement

proceeds of an issue. See Regulations sections 1.148-1(b),

1.148-1(c), and 1.148-9(b).

Pooled financing issue. This is a bond issue from which

more than $5 million of proceeds will be used to make loans to

two or more conduit borrowers.

Private business use. Private business use means use of

the proceeds of an issue by the organization or another section

501(c)(3) organization in an unrelated trade or business as

defined by section 513. Private business use also generally

includes any use by a nongovernmental person other than a

section 501(c)(3) organization unless otherwise permitted

through an exception or safe harbor provided under the

regulations or a revenue procedure.

Proceeds. This generally means the sale proceeds of an

issue (other than those sale proceeds used to retire bonds of the

issue that aren't deposited in a reasonably required reserve or

replacement fund). Proceeds also include any investment

proceeds from investments that accrue during the project period

(net of rebate amounts attributable to the project period). See

Regulations section 1.141-1(b).

Refunding escrow. This is one or more funds established as

part of a single transaction or a series of related transactions,

containing proceeds of a refunding issue and any other

amounts to provide for payment of principal or interest on one or

more prior issues. See Regulations section 1.148-1(b).

Refunding issue. This is an issue of obligations the

proceeds of which are used to pay principal, interest, or

redemption price on another issue (a prior issue), including the

issuance costs, accrued interest, capitalized interest on the

refunding issue, a reserve or replacement fund, or similar

costs, if any, properly allocable to that refunding issue. A current

refunding issue is a refunding issue that is issued not more than

90 days before the last expenditure of any proceeds of the

refunding issue for the payment of principal or interest on the

prior issue. An advance refunding issue is a refunding issue that

isn't a current refunding issue. See Regulations sections

1.150-1(d)(1), (3), and (4).

Special rules for refunding of pre-2003 issues. Bonds

issued after December 31, 2002, to refund bonds issued before

January 1, 2003, have special reporting requirements. Such

refunding bonds are subject to the generally applicable reporting

requirements of Parts I, II, and IV. However, the organization

need not complete lines 1 through 9 of Part III to report private

business use information for the issue for such refunding bonds.

These special rules don't apply to bonds issued after December

31, 2002, to refund directly or through a series of refunding

bonds that were also originally issued after 2002.

Example 1. Refunding of pre-2003 bonds. Bonds issued

in 2002 to construct a facility were current refunded in 2017. In

2020, bonds were issued to current refund the 2017 bonds. As of

December 31, 2023, the last day of the organization's tax year,

the 2020 refunding bonds had an outstanding principal amount

exceeding $100,000. The organization must list the refunding

bond issue in Part I for each year the outstanding principal

amount exceeds $100,000 as of the last day of such year, and

must provide all Part I, Part II, and Part IV information for such

2

refunding issue. Because the original bonds were issued prior

to 2003, the organization need not complete Part III for the

refunding bond issue.

Example 2. Refunding of post-2002 bonds. Bonds

issued in 2014 were advance refunded in 2017. As of December

31, 2023, the last day of the organization's tax year, the

refunding issue had an outstanding principal amount

exceeding $100,000. The organization must list the refunding

issue in Part I for each year the outstanding principal amount

exceeds $100,000 as of the last day of the year, and must

provide all Part I, Part II, Part III, and Part IV information for such

refunding issue. If any outstanding bonds of the 2014 bond issue

weren't legally defeased, the organization must also list the 2014

bond issue in Part I, and must provide all Part I, Part II, Part III,

and Part IV information for such bond issue.

Part I. Bond Issues

In Part I, provide the requested information for each outstanding

tax-exempt bond issue (including a refunding issue) that:

• Had an outstanding principal amount in excess of $100,000

as of the last day of the tax year (or other selected

12-month period), and

• Was issued after December 31, 2002.

For this purpose, bond issues that have been legally

defeased in whole, and as a result are no longer treated as a

liability of the organization, need not be listed in Part I and aren't

subject to the generally applicable reporting requirements of

Parts I, II, III, and IV.

Note. Continued compliance with federal tax law requirements

is required with respect to defeased bonds.

Use one row for each issue, and use the Part I row

designation for a particular issue (for example, “A” or “B”)

consistently throughout Parts I through IV. The information

provided in columns (a) through (d) should be consistent with the

corresponding information included on Form 8038, Information

Return for Tax-Exempt Private Activity Bond Issues, filed by the

governmental issuer upon the issuance of the bond issue.

Complete multiple schedules if necessary to account for all

outstanding post-December 31, 2002, tax-exempt bond issues.

In this case, describe in the first Schedule K, Part VI, that

additional schedules are included.

Columns (a) and (b). Enter the name and employer

identification number (EIN) of the issuer of the bond issue. The

issuer's name is the name of the entity that issued the bond

issue (typically, a state or local governmental unit). The

issuer's name and EIN should be identical to the name and EIN

listed on Form 8038, Part I, lines 1 and 2, filed for the bond issue.

Column (c). Enter the Committee on Uniform Securities

Identification Procedures (CUSIP) number on the bond with the

latest maturity. The CUSIP number should be identical to the

CUSIP number listed on Form 8038, Part I, line 9, filed for the

bond issue. If the bond issue wasn't publicly offered and there

is no assigned CUSIP number, enter zeros in place of the CUSIP

number.

Column (d). Enter the issue date of the obligation. The issue

date should be identical to the issue date listed on Form 8038,

Part I, line 7, filed for the bond issue. The issue date is generally

the date on which the issuer receives the purchase price in

exchange for delivery of the evidence of indebtedness (for

example, a bond). In no event is the issue date earlier than the

first day on which interest begins to accrue on the bond for

federal income tax purposes. See Regulations section

1.150-1(b).

Column (e). Enter the issue price of the obligation. The issue

price should generally be identical to the issue price listed on

Form 8038, Part III, line 21(b), filed for the bond issue. The

issue price is generally determined under Regulations sections

1.148-1(b) and 1.148-1(f). If the issue price isn't identical to the

issue price listed on the filed Form 8038, use Part VI to explain

the difference.

Column (f). Describe the purpose of the bond issue, such as

to construct a hospital or provide funds to refund a prior issue. If

any of the bond proceeds were used to refund a prior issue,

enter the date of issue for each of the refunded issues. If the

issue has multiple purposes, enter each purpose. If the issue

financed various projects or activities corresponding to a related

purpose, only enter the purpose once. For example, if proceeds

are used to acquire various items of office equipment, the

amount of such expenditures should be aggregated and

identified with the stated purpose of “office equipment.”

Alternatively, if proceeds are used to construct and equip a

single facility, the expenditures should be aggregated and

identified with the stated purpose of “construct & equip facility”

where the identification of the facility is distinguishable from

other bond-financed facilities, if any. Use Part VI if additional

space is needed for this purpose.

Column (g). Check “Yes” or “No” to indicate whether a

defeasance escrow or refunding escrow has been

established to irrevocably defease any bonds of the bond issue.

Column (h). Check “Yes” if the organization acted as an “on

behalf of issuer” in issuing the bond issue. Check “No” if the

organization only acted as the borrower of the bond proceeds

under the terms of a conduit loan with the governmental issuer

of the bond issue.

An “on behalf of issuer” is a corporation organized under the

general nonprofit corporation law of a state whose obligations

are considered obligations of a state or local governmental

unit. See Rev. Proc. 82-26, 1982-1 C.B. 476, for a description of

the circumstances under which the IRS will ordinarily issue a

letter ruling that the obligations of a nonprofit corporation will be

issued on behalf of a state or local governmental unit. See also

Rev. Rul. 63-20, 1963-1 C.B. 24; Rev. Rul. 59-41, 1959-1 C.B.

13; and Rev. Rul. 54-296, 1954-2 C.B. 59. An “on behalf of

issuer” also includes a constituted authority organized by a state

or local governmental unit and empowered to issue debt

obligations in order to further public purposes. See Rev. Rul.

57-187, 1957-1 C.B. 65.

Column (i). Check “Yes” or “No” to indicate if the bond issue

was a pooled financing issue.

Part II. Proceeds

Complete for each bond issue listed in rows A through D of Part

I. Complete multiple schedules if necessary to account for all

outstanding tax-exempt bond issues. Note that lines 3 and 5

through 12 concern the amount of proceeds of the bond issue,

but line 4 concerns the amount of gross proceeds of the bond

issue. Because of this, the aggregate of the amounts entered on

lines 4 through 12 may not equal the amount entered on line 3.

Line 1. Enter the cumulative principal amount of bonds of the

issue that have been retired as of the end of the 12-month period

used in completing this schedule.

Line 2. Enter the cumulative principal amount of bonds of the

issue that haven't been retired, but have been legally defeased

through the establishment of a defeasance escrow or a

refunding escrow, as of the end of the 12-month period.

Line 3. Enter the total amount of proceeds of the bond issue

as of the end of the 12-month period. If the total proceeds aren't

identical to the issue price listed in Part I, column (e), use Part VI

to explain the difference (for example, investment earnings).

Line 4. Enter the amount of gross proceeds held in a

reasonably required sinking fund, pledged fund, or reserve or

replacement fund as of the end of the 12-month period. See

Regulations sections 1.148-1(c)(2), 1.148-1(c)(3), and

1.148-2(f).

Line 5. Enter the cumulative amount of proceeds used, as of

the end of the 12-month period, to pay interest on the applicable

portion of the bond issue during construction of a financed

capital project.

Line 6. Enter the amount of proceeds held in a refunding

escrow as of the end of the 12-month period. For this purpose

only, include investment proceeds without regard to the project

period limitation found in the definition of proceeds.

Line 7. Enter the cumulative amount of proceeds used to pay

bond issuance costs, including (but not limited to) underwriters'

spread as well as fees for trustees and bond counsel as of the

end of the 12-month period. Issuance costs are costs incurred in

connection with, and allocable to, the issuance of a bond issue.

See Regulations section 1.150-1(b) for an example list of

issuance costs.

Line 8. Enter the cumulative amount of proceeds used to pay

fees for credit enhancement that are taken into account in

determining the yield on the issue for purposes of section 148(h)

(for example, bond insurance premiums and certain fees for

letters of credit) as of the end of the 12-month period.

Line 9. Enter the cumulative amount of proceeds used to

finance working capital expenditures as of the end of the

12-month period. However, don't report expenditures reported in

lines 4, 6, 7, and 8. A working capital expenditure is any cost that

isn't a capital expenditure (for example, current operating

expenses). See Regulations section 1.150-1(b).

Line 10. Enter the cumulative amount of proceeds used to

finance capital expenditures as of the end of the 12-month

period. Capital expenditures generally include costs incurred to

acquire, construct, or improve land, buildings, and equipment.

See Regulations section 1.150-1(b). However, don't report

capital expenditures financed by a prior issue that was refunded

by the bond issue or capitalized interest that was reported on

line 5.

Line 11. Enter the cumulative amount of proceeds used for any

item not reported on lines 4 through 10 as of the end of the

12-month period. Include any proceeds used or irrevocably held

to redeem or legally defease bonds of the issue.

Line 12. Enter the amount of unspent proceeds as of the end of

the 12-month period other than those amounts identified in lines

4, 6, and 11.

Line 13. Enter the year in which construction, acquisition, or

rehabilitation of the financed project was substantially

completed. A project can be treated as substantially completed

when, based upon all the facts and circumstances, the project

has reached a degree of completion that would permit its

operation at substantially its design level and it is, in fact, in

operation at such level. See Regulations section 1.150-2(c). If

the bond issue financed multiple projects, enter the latest year

in which construction, acquisition, or rehabilitation of each of the

financed projects was substantially completed. For example, if a

bond issue financed the construction of three projects that were

substantially completed in 2022, 2023, and 2024, respectively,

then enter “2024.” If the bond issue financed working capital

expenditures, provide the latest year in which the proceeds of

the issue were allocated to those expenditures.

Line 14. Check “Yes” if the bonds were issued after 2017 to

refund tax-exempt bonds or if the bonds were issued prior to

2018 to currently refund tax-exempt bonds. Otherwise, check

“No.”

3

Line 15. Check “Yes” if the bonds were issued after 2017 to

refund taxable bonds or if the bonds were issued prior to 2018 to

advance refund tax-exempt bonds. Otherwise, check “No.”

Line 16. Check “Yes” or “No” to indicate if the final allocation of

proceeds has been made. Proceeds of a bond issue must be

accounted for using any reasonable, consistently applied

accounting method. Allocations must be made by certain

applicable due dates and are generally not considered final until

the expiration of such due dates. See Regulations section

1.148-6.

Line 17. Check “Yes” or “No” to indicate if the organization

maintains adequate books and records to support the final

allocation of proceeds. Answer this question only with respect to

the tax year applicable to this schedule.

Part III. Private Business Use

Complete for bond issues listed in rows A through D of Part I,

other than listed bond issues that are post-December 31, 2002,

refunding issues which refund pre-January 1, 2003, bond

issues directly or through a series of refundings. For this

purpose, a refunding bond issue also includes allocation and

treatment of bonds of a multipurpose issue as a separate

refunding issue under Regulations section 1.141-13(d).

Complete multiple schedules if necessary to account for all

outstanding tax-exempt bond issues.

The organization may omit from Part III information with

respect to any bond issue reported in Part I that is a qualified

private activity bond other than a qualified 501(c)(3) bond. For

any other qualified private activity bonds, in Part VI the

organization must identify the issue by reference to rows A

through D of Part I, as applicable, and identify the type of

qualified private activity bond.

Line 1. Check “Yes” or “No” to indicate if the organization was at

any time during the reporting period a partner in a partnership or

a member of a limited liability company (LLC) which both owned

property that was financed by the bond issue and included as

partner(s) or member(s) entities other than a section 501(c)(3)

organization.

Line 2. Check “Yes” or “No” to indicate if any lease

arrangements that may result in private business use were

effective at any time during the year with respect to property

financed by the bond issue. The lease of financed property to a

nongovernmental person other than a section 501(c)(3)

organization is generally private business use. Lease

arrangements that constitute unrelated trade or business of the

lessor, or that are for an unrelated trade or business of a section

501(c)(3) organization lessee, may also result in private business

use. See Regulations sections 1.141-3(b)(3) and 1.145-2(b)(1).

Line 3a. Check “Yes” or “No” to indicate if any management or

service contract that may result in private business use was

effective at any time during the year with respect to property

financed by the bond issue. For this purpose, answer “Yes”

even if the organization has determined that the management or

service contract meets the safe harbor under Rev. Proc.

2017-13, 2017-6 I.R.B. 787, available at Rev. Proc. 2017-13, and

won’t result in actual private business use. A management or

service contract for the financed property can result in private

business use of the property, based on all facts and

circumstances. A management or service contract for the

financed property generally results in private business use of

that property if the contract provides for compensation for

services rendered with compensation based, in whole or in part,

on a share of net profits from the operation of the facility. See

Regulations section 1.141-3(b)(4). See also Rev. Proc. 2016-44,

2016-36 I.R.B. 316, available at Rev. Proc. 2016-44.

4

Line 3b. If line 3a was checked “Yes,” check “Yes” or “No” to

indicate if, during the 12-month period used to report on the

bond issue, the organization routinely engaged bond counsel or

other outside counsel to review any management or service

contracts relating to the financed property.

Line 3c. Check “Yes” or “No” to indicate if any research

agreement that may result in private business use was effective

at any time during the year for property financed by the bond

issue. For this purpose, answer “Yes” even if the organization

has determined that the research agreement meets the safe

harbor under Rev. Proc. 2007-47, 2007-29 I.R.B. 108, available

at Rev. Proc. 2007-47, and won’t result in actual private

business use. An agreement by a nongovernmental person to

sponsor research performed by the organization can result in

private business use of the property used for the research,

based on all the facts and circumstances. A research agreement

for the financed property will generally result in private business

use of that property if the sponsor is treated as the lessee or

owner of financed property for federal income tax purposes. See

Regulations section 1.141-3(b)(6).

Line 3d. If line 3c was checked “Yes,” check “Yes” or “No” to

indicate if, during the 12-month period used to report on the

bond issue, the organization routinely engaged bond counsel or

other outside counsel to review any research agreements

relating to the financed property.

Line 4. Enter the average percentage during the year of the

property financed by the bond issue that was used in a private

business use by a nongovernmental person other than a

section 501(c)(3) organization. See Regulations section

1.141-3(g)(4). The average percentage is determined by

comparing (i) the amount of private business use (see

Definitions, earlier) during the year to (ii) the total amount of

private business use and use that isn't private business use

during that year. Don't include costs of issuance reported in Part

II in the amount of property used in a private business use

(clause (i) of the preceding sentence), but do include such costs

in the total amount of use (clause (ii)). Enter the yearly average

percentage to the nearest tenth of a percentage point (for

example, 8.9% (0.089)). For this purpose, don't include any use

relating to either a management or service contract identified on

line 3a that the organization has determined meets the safe

harbor under Rev. Proc. 2017-13, or otherwise doesn't result in

private business use. See also Rev. Proc. 2016-44. Similarly,

don't include any use relating to a research agreement identified

on line 3c that the organization has determined meets the safe

harbor under Rev. Proc. 2007-47, or otherwise doesn't result in

private business use.

Line 5. Enter the average percentage during the year of the

property financed by the bond issue that was used in an

unrelated trade or business activity (a private business use)

by the organization, another section 501(c)(3) organization, or a

state or local governmental unit. See Regulations section

1.141-3(g)(4). Enter the yearly average percentage rounded to

the nearest tenth of a percentage point (for example, 8.9%

(0.089)).

Line 7. Check “Yes” or “No” to indicate whether, as of the end of

the 12-month period used to report on the bond issue, the bond

issue met the private security or payment test of section 141(b)

(2), as modified by section 145, to apply to qualified 501(c)(3)

bonds. Generally, a qualified 501(c)(3) bond issue will meet the

private security or payment test if more than 5% of the payment

of principal or interest on the bond issue is either made or

secured (directly or indirectly) by payments or property used or

to be used for a private business use. See Regulations sections

1.141-4 and 1.145-2.

Line 8a. Check "Yes" or "No" to indicate whether the owner of

any of the financed property sold or transferred the property to

an entity other than a state or local governmental unit or another

section 501(c)(3) organization. For this purpose, report sales

and transfers on a cumulative basis since the issuance of the

bonds.

Line 8b. If line 8a was checked "Yes," report the percentage of

property sold or transferred, including prior transfers on a

cumulative basis, since the issuance of the bonds.

Line 8c. If line 8a was checked "Yes," state whether the

organization took any remedial actions under the applicable

regulations with respect to any nonqualified bonds that may have

resulted from the transfer.

Line 9. Check "Yes" or "No" to indicate whether the organization

has established written procedures to ensure timely remedial

action with respect to all nonqualified bonds in accordance with

Regulations sections 1.141-12 and 1.145-2 or other additional

remedial actions authorized by the Commissioner under

Regulations section 1.141-12(h). Answer "Yes" only if the

procedures applied to the bond issue during the 12-month

period used to report on the bond issue.

Part IV. Arbitrage

Complete for each bond issue listed in rows A through D of Part

I. Complete multiple schedules if necessary to account for all

outstanding tax-exempt bond issues.

Line 1. Under section 148(f), interest on a state or local bond

isn't tax exempt unless the issuer of the bond rebates to the

United States arbitrage profits earned from investing proceeds of

the bond in higher yielding nonpurpose investments. Issuers of

tax-exempt bonds and any other bonds subject to the provisions

of section 148 must use Form 8038-T, Arbitrage Rebate, Yield

Reduction and Penalty in Lieu of Arbitrage Rebate, to make

arbitrage rebate and related payments. Generally, rebate

payments are due no later than 60 days after every fifth

anniversary of the issue date and the final payment of the bonds.

Check “Yes” or “No” to indicate whether the issuer has filed the

Form 8038-T that would have been most recently due.

Lines 2a through 2c. If the issuer hasn't filed Form 8038-T for

the most recent computation date for which filing would be

required if rebate were due, check “Yes” or “No” to indicate

whether any of the explanations in lines 2a through 2c apply. If

line 2c is checked “Yes,” use Part VI to provide the date of the

rebate computation showing that no rebate was due for the

applicable computation date.

Line 3. Check “Yes” or “No” to indicate if the bond issue is a

variable rate issue. A variable rate issue is an issue containing a

bond with a yield not fixed and determinable on the issue date.

Lines 4a through 4e. In general, payments made or received

by a governmental issuer or borrower of bond proceeds under

a qualified hedge are taken into account to determine the yield

on the bond issue. A qualified hedge can be entered into

before, at the same time as, or after the date of issue. Check

“Yes” or “No” on line 4a to indicate if the organization or the

governmental issuer has entered into a qualified hedge and

identified it on the governmental issuer's books and records. See

Regulations section 1.148-4(h). If the answer to line 4a is “Yes”:

• Enter the name of the provider of the hedge on line 4b;

• Enter the term of the hedge rounded to the nearest tenth of

a year (for example, 2.4 years) on line 4c;

• Enter “Yes” or “No” on line 4d to indicate if, as a result of the

hedge, variable yield bonds will be treated as fixed yield

bonds (superintegration of the hedge) (see Regulations

section 1.148-4(h)(4)); and

• Enter “Yes” or “No” on line 4e to indicate if the hedge was

terminated prior to its scheduled termination date.

Lines 5a through 5d. Check “Yes” or “No” on line 5a to indicate

if any gross proceeds of the bond issue were invested in a

guaranteed investment contract (GIC). A GIC includes any

nonpurpose investment that has specifically negotiated

withdrawal or reinvestment provisions and a specifically

negotiated interest rate, including “negotiations” through

requests for bids. It also includes any agreement to supply

investments on two or more dates (for example, a forward supply

contract). If the answer on line 5a is “Yes”:

• Enter the name of the provider of the GIC on line 5b,

• Enter the term of the GIC rounded to the nearest tenth of a

year on line 5c, and

• Enter “Yes” or “No” on line 5d to indicate if the regulatory

safe harbor for establishing fair market value provided in

Regulations section 1.148-5(d)(6)(iii) was satisfied.

Line 6. Check “Yes” or “No” to indicate if any gross proceeds

were invested beyond a temporary period (for example, the

3-year temporary period applicable to proceeds spent on

expenditures for capital projects, or the 13-month temporary

period applicable to proceeds spent on working capital

expenditures), or if any gross proceeds were invested in a

reserve or replacement fund in an amount exceeding applicable

limits. See Regulations sections 1.148-2(e) and (f).

Line 7. Check “Yes” or “No” to indicate if the organization has

established written procedures to monitor compliance with the

arbitrage, yield restriction, and rebate requirements of section

148. Answer “Yes” only if the procedures applied to the bond

issue during the 12-month period are used to report on the bond

issue.

Part V. Procedures To Undertake

Corrective Action

Regulations section 1.141-12 and other available remedies for

noncompliance may not cover all violations of the requirements

of section 145 and other applicable requirements for tax-exempt

bonds benefiting the organization. Certain remedial provisions

also require that the noncompliance be identified and remedial

action taken within a limited time after the deliberate action or

other cause of the violation. In instances where applicable

remedial provisions aren't available under the regulations, an

issuer of bonds may request a voluntary closing agreement to

address the violation under the Tax Exempt Bonds Voluntary

Closing Agreement Program described under Notice 2008-31,

2008-11 I.R.B. 592. Check “Yes” or “No” to indicate whether the

organization has established written procedures to ensure timely

identification of violations of federal tax requirements and timely

correction of any identified violation(s) through use of the

voluntary closing agreement program if self-remediation isn't

available under applicable regulations. Answer “Yes” only if the

procedures applied during the 12-month period are used to

report on the bond issue.

Part VI. Supplemental Information

Use Part VI to provide the narrative explanations required, if

applicable, to supplement Part I, columns (e) and (f); to provide

additional information or comments relating to the reporting of

liabilities by related organizations; and to describe certain

assumptions that are used to complete Schedule K (Form 990)

when the information provided isn't fully supported by existing

records. Also use Part VI to supplement responses to questions

on Schedule K (Form 990). Identify the specific part and line

number that the response supports, in the order in which the

responses appear on Schedule K (Form 990).

5