Tax Partner Discusses 'Build America Bond' Subsidy Payments

The Bond Buyer | March.08.2013

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.