SECTION 1. BACKGROUND

In Notice 2009–51, 2009–28 I.R.B. 128 (July 13, 2009), the Treasury Department and the IRS addressed administrative procedures for allocations of the $2 billion national bond volume limitation authority (“volume cap”) to issue tribal economic development bonds (“Tribal Economic Development Bonds”) under § 7871(f) of the Internal Revenue Code (“Code”). On September 15, 2009, the IRS announced allocations in an aggregate amount of approximately $1 billion of volume cap in the first tranche of allocation (the “First Allocation”) of authority to issue Tribal Economic Development Bonds. Section 7(f) of Notice 2009–51 provides that if bonds are not issued by December 31, 2010, for any or all of the allocation received by an Indian tribal government from the First Allocation, then such allocation is treated as forfeited.