The Tax Reform Act of 1986 placed arbitrage restrictions and reporting requirements on issuers of tax-exempt debt. Faced with these new requirements, a group of local finance officials worked with the Virginia Treasury Board to find a way to simplify compliance.
In response to this grass roots effort, the Virginia Legislature passed the Government Non-Arbitrage Investment Act in 1989 (Sections 2.2-4700 through 2.2-4705 of the Code of Virginia). The law authorized the Virginia Treasury Board to create the Virginia State Non-Arbitrage Program® ("Virginia SNAP"). The Commonwealth of Virginia, counties, cities, and towns in the Commonwealth, and their agencies, institutions and authorities (“Virginia governments or Issuers”) are all eligible to invest in the Program.
The Virginia Treasury Board sponsors the SNAP Program to provide comprehensive investment management, accounting and arbitrage calculation services for the proceeds of tax-exempt financings of Virginia governments. The Treasury Board has hired a program/investment manager, rebate calculation agent, central depository, custodian bank, and legal counsel to manage the program and provide services to Investors.
The Commonwealth of Virginia received the National Government Finance Officers Association prestigious Award for Excellence for Financial Management for its efforts in creating Virginia SNAP. The award recognized the Program for its originality, transferability, technical competence and practicality.
For More Information
To find out more about how the SNAP Program can meet your needs, please call Nelson Bush at 1-800-570-SNAP (1-800-570-7627) or one of the other Program Representatives.