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ITG FAQ #1 Answer-Can federally recognized Indian tribal governments issue tax-exempt bonds?

Yes. Federally recognized Indian tribal governments can issue tax-exempt bonds for certain governmental and qualified purposes. Section 7871(a)(4) provides that, subject to additional requirements, tribal governments are treated as states for purposes of issuing valid debt obligations under Section 103. However, tribal governments that issue taxable bonds do not have to comply with the requirements applicable to the issuance of tax-exempt bonds.

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Page Last Reviewed or Updated: 17-Oct-2014