WASHINGTON — Build America Bond transaction participants are debating whether they need to do more to track BAB prices to avoid running afoul of statutory premium restrictions and jeopardizing the issuer’s subsidy payments or to respond to an Internal Revenue Service compliance check.

Bond attorneys last week said a lack of clarity on American Recovery and Reinvestment Act provisions relating to BAB premiums, coupled with a heightened IRS interest in the initial pricing of BABs, has led to an increased focus on pricing. But no consensus has emerged so far on what, if anything, should be done, they said.

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