MCC §14.38.090
Arbitrage bonds
Read the official text at library.municode.com ↗This section says that money from bonds sold for an improvement district cannot be invested in a way that makes them "arbitrage bonds" under federal tax law. If needed to avoid that, the money must be used for the purposes listed in another section, even if the bonds are not fully paid off yet.
everyone
The ordinance, as written (Maui County) — Arbitrage bonds
A copy, taken August 21, 2026. The version published by Maui County is the one that governs, and it may have changed since. Check it before relying on anything here.
Proceeds of bonds issued for any improvement district pursuant to the provisions of
this article shall not be invested, and none of the provisions of this article shall
be construed as requiring investment of such proceeds, in securities or other obligations
in such a manner as would constitute the bonds "arbitrage bonds" within the meaning
of section 103(d) of the Internal Revenue Code of 1954 and temporary, proposed, or
final regulations thereunder. In the event and to the extent that it is necessary
to do so to comply with the provisions of this section, such proceeds and proceeds
of investments thereof shall be used for one or the other of the purposes specified
in subdivisions 1 and 2 of subsection A of section 14.52.120 , notwithstanding that all of such bonds, and interest thereon, have not yet been
paid.
(Ord. 827 § 1(a), 1975: Ord. 801 § 1 (part), 1974: prior code § 25-1.12)
Read the official text at library.municode.com ↗as published Nov 21, 2025our copy taken Aug 21, 2026
Published by the County of Maui through Municode.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.