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Qualified Highway or Surface Transfer Freight Facility Bond
Understanding the Qualified Highway or Surface Transfer Freight Facility Bond
Definition & Meaning
A qualified highway or surface transfer freight facility bond is a type of tax-exempt private activity bond. These bonds are issued to finance projects that improve transportation infrastructure, specifically for freight transfer facilities. To qualify, at least ninety-five percent of the bond's net proceeds must be used for constructing or improving facilities that facilitate the transfer of freight between trucks and trains, or vice versa.
Table of content
Legal Use & context
Qualified highway or surface transfer freight facility bonds are commonly utilized in public finance to support infrastructure projects. They are relevant in areas such as transportation law and public finance. Legal professionals may encounter these bonds in the context of funding applications, compliance with federal regulations, and project financing. Users can manage forms related to these bonds through legal templates provided by US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A city issues a qualified highway or surface transfer freight facility bond to finance the construction of a new freight transfer terminal that connects truck and rail services. This project receives federal funding under Title 23.
Example 2: A state government issues bonds to improve an international bridge that facilitates freight movement between the U.S. and Canada, qualifying for federal assistance under Title 23. (hypothetical example)
Relevant laws & statutes
Key statutes related to qualified highway or surface transfer freight facility bonds include:
Title 23 of the United States Code, which covers federal-aid highways.
Title 49 of the United States Code, which pertains to transportation.
State-by-state differences
Examples of state differences (not exhaustive):
State
Key Differences
California
Additional state regulations may apply to the issuance of bonds.
Texas
May have specific local requirements for project eligibility.
New York
State-level approvals may be required for certain projects.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Differences
Private Activity Bond
A bond issued to fund projects that benefit private entities.
Qualified highway or surface transfer freight facility bonds are a specific type of private activity bond focused on transportation projects.
Tax-Exempt Bond
A bond whose interest payments are exempt from federal income tax.
Qualified highway or surface transfer freight facility bonds are tax-exempt but have specific use requirements related to freight facilities.
Common misunderstandings
What to do if this term applies to you
If you are involved in a project that may qualify for a qualified highway or surface transfer freight facility bond, consider the following steps:
Review the eligibility criteria to ensure your project qualifies.
Consult with a legal professional to understand the implications and requirements.
Explore US Legal Forms for templates and resources related to bond applications and compliance.
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