IRS Allows Refundings of GO Zone and Disaster Area Bonds

On December 23, 2011, the IRS released Notice 2012-3. The Notice provides guidance on the circumstances under which issuers may refund GO Zone, Midwestern Disaster Area, and Hurricane Ike Disaster Bonds.  The statutes authorizing these bonds were silent on the permissibility of refundings after the applicable statutory sunset dates.  The Notice clarifies that refundings are permissible under certain conditions.