Liberty Bonds Law and Legal Definition

Liberty Bond is a type of exempt facility bond authorized by section 1400 L (d) of Internal Revenue Code. Liberty Bonds are subject to following requirements:

a. ninety five percent or more of the net proceeds of such issue must be used for qualified project costs;

b. the bond must be issued by the State of New York or any political subdivision thereof;

c. the Governor of the State of New York or the Mayor of the City of New York must designate the bond for purposes of section 1400L(d); and

d. the bond must be issued after March 9, 2002, and before January 1, 2005.