Exempt Facility Bond Law and Legal Definition

Exempt facility bond is a tax-exempt private activity bond issue. Ninety five percent or more of the net proceeds of a exempt facility bond is used to finance a tax-exempt facility. Such facilities include airports, docks and wharves, mass commuting facilities, facilities for the furnishing of water, sewage facilities, solid waste disposal facilities, qualified residential rental projects, facilities for the local furnishing of electric energy or gas, local district heating or cooling facilities, qualified hazardous waste facilities, high-speed intercity rail facilities, environmental enhancements of hydroelectric generating facilities, and qualified public educational facilities.