Accessing the Tax-Exempt Bond Market
The UCSFA is a conduit issuer created in Utah Code 53G-5-601 to provide access for the charter school community to the tax-exempt bond market. When a charter school accesses the tax-exempt bond market by issuing bonds through the UCSFA, they become a conduit borrower. A conduit borrower is responsible for the payment of debt service on the conduit bond issue and is contractually obligated to maintain the tax-exempt status of the bonds.
IRS Office of Tax Exempt Bonds (TEB)
The IRS Tax Exempt and Government Entities Division provides detailed information to conduit issuers and borrowers in maintaining the tax exemption of the bonds.
We encourage conduit borrowing schools to become familiar with the tax information provided by the IRS TEB and formulate a strategy with your bond counsel and local counsel to maintain the tax exemption on the bonds.