Tax Partner Discusses 'Build America Bond' Subsidy Payments

The Bond Buyer

This article, about the possible consequences of reducing 'Build America Bond' (BAB) subsidy payments under sequestration, quotes tax partner Rich Moore.

"Our No. 1 guidance is that it depends on the specific language, each issuer's specific bond redemption provisions," said Moore.

"It's not entirely clear" if BABs could be called over a period of years, based on the documents Moore has seen.

"If there's a lot of money at stake, there often is enough ambiguity that the parties could expect [such calls] to be litigated," he added.