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Bond Accountability Commission 2 Recommendations Page 129

an unexpected change in law or market conditions, that will prove the most cost-effective option for CMSD.

Recommendations: Federal law provides CMSD with a number of options that offer benefits, in appropriate facts and circumstances, beyond the benefits of tax-exempt securities. We recommend that CMSD consider each of those options in detail with CMSD’s Financial Advisors and legal counsel. In particular, given present market conditions and federal tax and subsidy policies, direct subsidy QSCBs clearly offer to CMSD the preferable option for Bond issuance. Both federal tax and subsidy policies and market conditions may change suddenly and drastically, however. Therefore, a definitive decision as to which approach is best must be made under then prevailing conditions.

BAC2 Recomendations Final 04062010