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agencies, the issuer may assign a letter of the

price of the entire issue (from line 20, column

Line 21.—Enter the amount of proceeds that

alphabet to each department or agency, and

will be used to pay interest from the date the

(c)).

each may separately number its reports by

bonds are dated to the date of issue.

For a lease or installment sale, enter the

indicating both the report number and letter

total number of years the lease or installment

Line 23.—Enter the amount of the proceeds

(e.g., G1995-5-C, G1995-2-D).

that will be used to pay bond issuance costs,

sale will be outstanding.

Line 6.—Enter the date of issue. This is

including fees for trustees and bond counsel.

(f) Enter the yield, as defined in section

generally the date on which the issuer

148(h), in column (f) only if it has been

Line 24.—Enter the amount of the proceeds

physically exchanges the bonds that are part

that will be used to pay fees for credit

computed. The yield is the discount rate that,

of the issue for the underwriter’s (or other

when used to compute the present value of

enhancement that are taken into account in

purchaser’s) funds. For a lease or installment

all payments of principal and interest to be

determining the yield on the issue for

sale, enter the date interest starts to accrue.

paid on the obligation, produces an amount

purposes of section 148(h) (e.g., bond

Line 7.—Enter the name of the issue. If there

insurance premiums and certain fees for

equal to the purchase price, including

is no name, please provide other identification

accrued interest. See Regulations section

letters of credit).

of the issue.

1.148-4 for specific rules to compute the yield

Line 26.—Enter the amount of the proceeds

on an issue. If the issue is a variable rate

Line 8.—Enter the CUSIP (Committee of

that will be used to pay principal, interest, or

issue, write “VR” as the yield of the issue.

Uniform Securities Identification Procedure)

call premium on any other issue of bonds

number of the bond with the latest maturity. If

If the issue is a lease or installment sale,

within 90 days of the date of issue.

the issue does not have a CUSIP number,

enter the effective rate of interest being paid.

Line 27.—Enter the amount of the proceeds

write “None.”

(g) Enter the net interest cost percentage

that will be used to pay principal, interest, or

(NIC) in column (g) if the yield is not entered

call premium on any other issue of bonds

Part II—Type of Issue

in column (f). The NIC for an issue may be

after 90 days of the date of issue, including

Identify the type of obligations issued by

proceeds that will be used to fund an escrow

determined by dividing the total interest

checking the appropriate box(es) and entering

payments for the issue (increased by any

account for this purpose.

the corresponding issue price. The issue price

discount and reduced by any premium or

Part V—Description of Refunded

does not include interest from the date the

accrued interest) by the product of the issue

Bonds

obligations are dated to the date of issue (if

price from line 20, column (c), and the

payable at regular intervals of one year or

weighted average maturity from line 20,

Complete this part only if the bonds are to be

less).

column (e).

used to refund a prior issue of tax-exempt

a + b - c

Lines 9 and 10.—Attach a schedule listing

bonds. For a lease or installment sale, write

NIC =

names and employer identification numbers

“N/A” on Part V.

x y

(EINs) of organizations that are to use

a = total interest payments

Lines 30 and 31.—Enter the remaining

proceeds of these obligations if different from

weighted average maturity of the bonds being

b = discount

those of the issuer.

refunded. Determine the remaining weighted

c = premium or accrued interest

Line 16.—Check the box on this line only if

average maturity without regard to the

x = issue price

lines 9 through 15 do not apply. Enter a

refunding. The weighted average maturity is

y = weighted average maturity

description of the issue in the space

determined in the same manner as on line 20,

provided.

column (e).

If the issue is a variable rate issue, write

“VR” as the NIC of the issue.

Line 33.—Enter the date of issue of the

Part III—Description of Obligations

bonds being refunded. If more than a single

For other than variable rate issues, carry

Line 19.—Enter the maturity date, the interest

issue of bonds will be refunded, enter the

the yield or the NIC out to four decimal

rate (or coupon rate), the issue price, and the

date of issue of each issue.

places (e.g., 5.3125%).

stated redemption price at maturity. (a) If

Example 1: An issue is made up of four

Part VI—Miscellaneous

there is more than one maturity date for

bonds, each with an issue price of $1. One

bonds that are part of the issue, enter the

Line 36.—If any portion of the gross

bond matures at each of the four annual

information for the bonds with the latest

proceeds of the issue are or will be invested

anniversary dates after the date of issue. The

maturity date. (b) Interest rates should be

in a guaranteed investment contract, as

weighted average maturity (WAM) is

carried out to three decimal places. If the

defined in Regulations section 1.148-1(b),

calculated as follows:

interest rate is a variable rate, write “VR” in

enter the amount of the gross proceeds so

column (b). (c) If the bonds are reoffered to

$1X1 + $1X2 + $1X3 + $1X4

$10

WAM =

= 2.5

invested, as well as the final maturity date of

the public, the issue price should be based

the guaranteed investment contract.

on the reasonably expected reoffering price.

Example 2: If in Example 1, the bond

Line 37a.—Enter the amount of this issue

The issue price does not include interest from

maturing at the end of the first year had an

used to fund a loan to another governmental

the date the bonds are dated to the date of

issue price of $1.1 (reflecting a premium) the

unit, the interest of which is tax exempt.

issue (if payable at regular intervals of one

WAM would be calculated as follows:

year or less). (d) The stated redemption price

Line 38.—Check this box if the issue is a

$1.1X1 + $1X2 + $1X3 + $1X4

$10.1

at maturity is the amount payable (without

WAM =

= 2.46

construction issue and an irrevocable election

$4.1

regard to optional redemptions) at maturity

to pay a penalty in lieu of arbitrage rebate

(excluding interest payable at regular intervals

Example 3: Assume that the bonds described

has been made on or before the date the

of one year or less).

in Example 2 pay 5% interest at the end of

bonds were issued. The penalty is payable

each year that they are outstanding. Using

with a Form 8038-T for each 6-month period

For a lease or installment sale, write “N/A”

the above formula, NIC is calculated as

after the date the bonds are issued. Do not

on line 19, columns (a) through (d).

follows:

make any payment of penalty in lieu of

Line 20.—Enter in columns (c), (d), and (e) the

arbitrage rebate with this form. See Rev.

a = .20 + .15 + .10 + .05 = .50

issue price, stated redemption price at

Proc. 92-22, 1992-1 C.B. 736 for rules

b = 0

maturity, and weighted average maturity in

regarding the “election document.”

years (e.g., 8.7 years) for the entire issue.

c = .1

Line 39.—Check this box if the issuer

(d) The stated redemption price at maturity of

x = 4.1

identified a hedge on its books and records in

the entire issue is the sum of the stated

y = 2.46

accordance with Regulations sections

redemption prices at maturity of each bond

.50 + 0 - .1

.40

1.148-4T(h)(2)(ix) and 1.148-4T(h)(5)(ii)(A).

issued as part of the issue. For a lease or

NIC =

= .039659 = 3.9659%

4.1 X 2.46

10.086

These regulations permit an issuer of

installment sale, write “N/A” on line 20,

tax-exempt bonds to identify a hedge for it to

column (d). (e) The weighted average maturity

Part IV—Uses of Proceeds of Bond

be included in yield calculations for

is the sum of the products of the issue price

Issue

computing arbitrage.

of each maturity and the number of years to

maturity (determined separately for each

For a lease or installment sale, write “N/A” on

maturity and by taking into account

Part IV.

mandatory redemptions), divided by the issue

Page 2

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Instructions For Form 8038-G - Information Return For Tax-Exempt Governmental Obligations - 1995 Page 2

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