SECTION 4. SCOPE

.01 This revenue procedure applies to any issue of advance refunding bonds which was sold prior to July 19, 1996, and issued prior to August 19, 1996, and the proceeds of which were used to

purchase nonpurpose investments pursuant to an agreement that is substantially similar to an agreement to purchase described in sections 2.13 or 2.15 of this revenue procedure.

.02 An issue of bonds that is under an examination by the Service is not eligible for the program. An issue of bonds is under examination if the issuer of the bonds has been contacted in any manner by the Service for the purpose of scheduling any type of examination of that issue of bonds. For issuers that do not avail themselves of a closing agreement under this revenue procedure, the Service will treat the purchase of nonpurpose investments with the proceeds of an issue of bonds as being subject to the usual procedures governing tax consequences. The result upon any examination by the Service of the issue of bonds could be different from the terms of this revenue procedure, depending on the merits of the issuer’s position.

.03 For purposes of this revenue procedure, ‘‘issuer’’ means only the entity that actually issues the bonds and not a conduit borrower of the issue.