As one of the largest providers of arbitrage rebate services, First Southwest Asset Management, Inc., an affiliate of First Southwest Company, is entrusted with arbitrage rebate compliance for more than 390 municipal clients throughout the country. The firm has one of the largest staffs that focus exclusively on monitoring the investments of bond proceeds for municipalities and performing the required calculations to ensure that clients' bond issues retain their tax-exempt status.

First Southwest’s Arbitrage Rebate group offers unrivaled experience and expertise. In 2006, First Southwest’s seasoned team of professionals performed more than 2,700 rebate calculations representing in excess of $107 billion in total par amount.

Scope of Services

Consulting
• Assists with IRS audits and overpayment requests
• Prepares IRS form 8038-T (to signature stage)

Calculations
• Experienced in performing highly complex calculations, including:
     • Commingled funds
     • Refunding issues
     • Transferred proceeds
     • Variable rate debt
     • Reserve fund allocations

• Performs calculations at least once every five years and on the final maturity date of the issue.

Compliance
• First Southwest offers a proprietary software system that makes obsolete the spreadsheet applications used by other   arbitrage providers. The proprietary software gives clients a major advantage by reducing the likelihood of calculation   errors. Key system features include:
     • Deadline tracking for reporting dates
     • Future value calculations
     • Reserve fund allocations
     • Lowest permitted rebate amount analysis