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85-2
<br />Form 8098 -QC (ttev. 5-95)
<br />wten To File
<br />To file a separate retum, file Form 8038 -G0 on
<br />or before the 15th day of the second calendar
<br />month after the.closa of the calendar quarter in
<br />which the Issue is issued.
<br />To 1119 a consolidated return, file Form
<br />8038 -GC on or before February 15th of the
<br />calendar year following the year in which the
<br />Issue is issued.
<br />Late filing. —An issuer may be granted an
<br />extension of time to file Form 8038 -GC under
<br />Section 3 of Rev. Proc. 88-10,1988-1 C.B. 635,
<br />if it is determined that the failure to file on time
<br />is not due to willful neglect. Send a late Form
<br />8o38 -GC to: Internal Revenue SERJIce,
<br />•Philadelphia Service Center, Statistics of
<br />'.Income Unit, P:DA: Unit F -SOI, Philadelphia,
<br />4PA 19255, Stop #335. Type or print at the top
<br />'of the form, "This Statement Is Submitted In
<br />Accordance with Rev. Proo. $8-10.' Attach to -
<br />j the Form 8038 -GC a letter briefly stating why
<br />+ , Form 8038 -GC was -not submitted to the IRS
<br />on time. Also Indicate whether the obligation
<br />in question Is under examination by the IRS.
<br />Do not submit copies of any bond documents,
<br />leases, or Installment sale documents.
<br />Where To File
<br />File Form 8038 -GC with the Internal Revenue
<br />Service Center, Philadelphia, PA 19255.
<br />Rounding On to Whole Dollars
<br />You may show the money Items on this return
<br />'•'t as whole - dollar amounts. To do so, drop any
<br />amount leas than, 50 cents and Increase any
<br />amount from 50 cents through 99 cents to the
<br />next higher dollar.
<br />Exceptions = (a) Draw -down loans,
<br />commercial paper, etc. — Obligations issued
<br />during the same calendar year (1) pursuant to
<br />a loan agreement under which amounts are to
<br />be advanced periodically ('draw -down loanj,
<br />or (2) with a term not exceeding 270 days,
<br />may be treated as part of the same Issue If the
<br />obligations are equally and ratably secured
<br />under a single Indenture or loan agreement
<br />and are Issued pursuant to a common
<br />financing arrangement: e.g., pursuant to the
<br />same official statement that is periodically
<br />updated to reflect changing factual
<br />circumstances. In addition, for obligations
<br />Issued pursuant to a draw -down loan that
<br />meets the requirements of the preceding
<br />sentence, obligations Issued during different
<br />calendar years may be treated as part of the
<br />same Issue If all the amounts to be advanced
<br />pursuant to the draw -down loan ore
<br />reasonably expected to be advanced within 3
<br />years of the date of Issue of the first obligation.
<br />(b) Loases and installment salos: —
<br />Obilgations other than private activity bonds
<br />may be treated as apart of the same Issue if
<br />(1) the obligations are issued pursuant to a
<br />single agreement that is In the form of a lease
<br />or installment sale and (2) all of the property
<br />covered by that agreement is reasonably
<br />expected to be delivered within 3 years of the
<br />date of issue of the first obligation.
<br />Arbitrage rotate.— Generally, Interest on a
<br />state or local bond Is not tax exempt unless
<br />the issuer of the bond rebates to the United
<br />States arbitrage profits earned from investing
<br />proceeds of the bond In higher yielding
<br />nonpurpose invdstments. See section 148(f).
<br />Construction issue. —A construction issue is
<br />IsfinNions an issue of tax- exempt bonds if (1) at least
<br />Obligations refer to a single tax - exempt 75% of the available construction proceeds of
<br />overnmdntal obligation if Form 8038 -GC Is the Issue used for construction
<br />i expenditurres es with respect to property that Is to
<br />sod for separate reporting and refer to
<br />nultiple tax- exempt governmental obligations if 50 owned b a governmental unit or s
<br />ho form Is used for consolidated reporting. 501 (c) (3) organization, and (2) all of the bonds
<br />A'tox- exempt obligation' la not limited to that are part of the Issue are qualified Sol (c)(3)
<br />bonds: bonds that are not private activity
<br />he formal Issuance of bonds. it also includes bonds• or private activity bonds Issued to
<br />nstallment purchase agreements and financial finance property to be owned by a
<br />eases. governmental unit or a 501(c)(3) organization.
<br />P A'tax- exempt governmental obligation' Is a In lieu of rebating any arbitrage that may be
<br />ax- exempt obligation that is not a private owed to the United Staten, the Issuer of a
<br />activity bond. construction issue may make an Irrevocable
<br />P A'private activity bond' is generally an election to pay a penalty. The penalty is equal
<br />obligation issued as part of an Issue of which to 1 Y: of the amount of construction proceeds
<br />(1) more than 10% of the proceeds are to be that do not meet certain spending
<br />used for any private business use, and (2) requirements. See section 148(f)(4)(C).
<br />more than 1096 of the payment of principal or q
<br />Interest of the issue is either secured by an
<br />Interest In property to be used for a private
<br />business use (or payments in respect of such
<br />property); or is to be derived from payments In
<br />respect of property (or borrowed money) used
<br />for a private business use. An obligation is
<br />also considered s private activity bond 9 the
<br />amount of the proceeds to be used to make or
<br />finance loans (other than loans described In
<br />section 141(c) (2) to certain persons exceeds
<br />the smaller of 5% of the proceeds, or $5
<br />million. Report private activity bonds on Form
<br />8038, Information Return for Tax - Exempt
<br />Private Activity Bond Issues.
<br />* 'Issue' In general, obligations are treated
<br />as part of the same issue only If they are
<br />Issued (1) by the same issuer, (2) on the same
<br />date, and (3) pursuant to a single transaction
<br />or to a series of related transactions.
<br />page 2
<br />Do not amend estimated amounts previously
<br />reported once the actual amounts are
<br />determined. (see the Part 11 Instructions below)
<br />Une 1• —The issuer's name Is the name of the
<br />entity issuing the obligations, not the name of
<br />the entity receiving the benefit of the financing.
<br />In the case of a lease or Installment sale, the
<br />Issuer Is the lessee or purchaser.
<br />Une 2— An issuer that does not have an
<br />employer identification number (EIN) should
<br />apply for one on Form SS-4, Application for
<br />Employer Identification Number. This form
<br />may be obtained from most IRS and Social ,
<br />Security Administration offices. File Form SS4
<br />according to the instructions on that form. If
<br />the EIN has not been received by the due date
<br />for Form 8038 -GC, write 'Applied for' in the
<br />apace for the EIN.
<br />Specific Instructions
<br />In general. —A form 8038 -GC must be
<br />completed on the basis of available
<br />Information and reasonable expectations as of
<br />the date the Issue Is issued. Forms that are
<br />filed on a consolidated basis, however, may be
<br />completed on the basis of Information readily
<br />available to the Issuer at the close of the
<br />calendar year to which the form relates,
<br />supplemented by estimates made In good
<br />faith.
<br />Part I — Reporting Authority
<br />Amended return--if this Is an amended Form
<br />8038 -GC, check the amended return box.
<br />Complete Part 1 and only those lines of Form
<br />8038 -GC that are being amended.
<br />Part II — Description of
<br />Obligations
<br />a „•
<br />i
<br />�• 1
<br />Une 5.— Small governmental obligations are
<br />those with an Issue price of less than
<br />$100,000, if the obligations are reoffered to
<br />the public by an intermediary, the Issue price
<br />Is the reoffering price (excluding accrued
<br />Interest).
<br />If Form 8038 -GC is being filed for a single
<br />issue only, enter the Issue price of that issue.
<br />The issue price of an obligation means the;
<br />principal amount duo on the obligation and ;i.
<br />does not include Interest paid or to be paid.
<br />Therefore, line 5 should include only the
<br />principal amount due on obligations. For
<br />example, only the purchase price of an asset
<br />acquired pursuant to a lease should be
<br />Included on line 5. A lease or Installment sale
<br />is treated as issued on the date Interest starts ;
<br />to accrue.
<br />Una 6. —The weighted average maturity Is ;i 5
<br />determined by multiplying the issue price of .:
<br />each obligation reported on this form by its
<br />maturity in years, adding the results for all the T
<br />obligations reported on this form, and then
<br />dividing the total by the total Issue prices of all
<br />the obligations. For a lease or Installment
<br />sale, the maturity Is the total number of years
<br />the lease or installment sale will be
<br />outstanding.
<br />Une 7. —The weighted average Interest rate le '; %!;;:
<br />the average Interest rate on all the obligations . ;:
<br />reported on this form, weighted In proportion.
<br />to the Issue price and length of maturity of
<br />each obligation.
<br />Une 8-- Enter the total Issue price of the
<br />obligations reported on line 5 that are
<br />described on lines as through 8d. More than
<br />one line may apply to a particular obligation..
<br />For example, report on line 8b and line 8c,
<br />obligations Issued to refund prior Issues that
<br />were designated by the Issuer under section!.!'
<br />265(b)(3)(13)(1)(110.
<br />Une 9.— Check this box If the Issue Is a
<br />construction issue and an irrevocable election'
<br />10 pay a penalty in lieu of arbitrage rebate has
<br />been made on or before the date the bonds •; ''i`,
<br />were Issued. The penalty is payable with a
<br />Fort 8038 -T, Arbitrage Rebate and Penalty In ;
<br />Lieu of Arbitrage Rebate, for each 6 -month
<br />period after the date the bonds are issued. Do :,.,,,
<br />not make any payment of penalty In lieu of
<br />rebate with this form. See Rev. Proo. 92 -22,
<br />1992 -1 C.B. 736, for rules regarding the
<br />'election document.'
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