"The warranty of tax exemption is standard and is intended to put the cost on the issuer in exactly this kind of situation. That is how the system works."

Is this carved in stone? If so, Where? The bonds WERE tax exempt when issued. How could anyone guarantee tax exemption forever if it was still an IRS open item? If this is thecase then the M/V of these bonds wouldnot have dropped after this latest pronouncement. Do you know if it did ?

so is it time to sell .....?:loco:

Not at all. At least not because of this ruling by the IRS.

NO It is not time to sell it is time to buy. This issue is going to get straightened out. As to the bonds there may well be a question of material misrepresentation which is going to take everyone back to a review and debate concerning the application.

Now a days it is not wise to give people the benefit of the doubt because unlike bygone days people's attitudes have changed and there are far too many characters whose reputations are in dispute.

However, let me advance an argument in favor of the Developer. While CDD are new The Villages appears to be the largest of its kind. And so it would seem that during the incubator period (until the build out) it is important for the Developer with sway over the project and counties stay involved to keep it all going forward. Perhaps if the Developer moved away too quickly the project would have faltered?

Folks keep debating the valuation formula utilized in the transaction between the Developer and District. TheNotice of Proposed Issue dated January 2009 addressed that issue in quite a bit of detail. Suffice is to say the newspaper accounts etc reported the IRS was not impressed.

Bottom ine for me is that it appears this controversey is moving forward and the sooner it is resolved the better for all of us.

Jack, with all due respect you’re missing the point.

Do you realize that as we speak right now, you yourself could be one of those bondholders that you claim should be “his loss”?

Seriously. Have you ever invested in a mutual fund, be it a stock fund or a bond fund. Did you ever scrutinize the purchases and sales that the fund made while you held stock in that fund or did you just keep an eye on the total return on your investment?

Anyone that invested in a Municipal Bond Fund (usually a tax free one but not always) over the past 10 years or so is a potential current or previous bondholder of VCCDD Tax Free Bonds.

Am I making sense or are you still unsure of what I’m trying to tell you?

Think of the warranty on your car. It is intended to protect you, the buyer, if anything goes wrong with the car. If a wheel falls off during the warranty period, it doesn't matter if the manufacturer put the wheel on in good faith. When he gave you the warranty, he assumed responsibility if anything went wrong with the car. Same principle here.

Frankly, as a Villager, I would rather see the bond holders, as opposed to the Center Districts, take the ultimate hit, but, whatever you may think, it just simply is not going to happen-- although the bond holders may take a loss for reasons I am not going to get into.

By the way, although I have not followed the price of the relevant bonds, of course it dropped. The bond holders may have some difficulty in getting paid and also some tax problems as a result of the latest IRS ruling.

I have owned since 2007 and had 6 great years enjoying the amenities at a reasonable cost, provided by the Developer who got rich on this very unique place. There are some who think he got too rich but in the end I am paying a very affordable price unlike anywhere else. If I had listened to all the attackers ( who are still here BTW) I would have missed out on six glorious years. I hope he makes another billion and buys more yachts and jets or spends it anyway he chooses. I will not make my life decisions based on nine year old newspaper articles by reporters who have very limited knowledge if what they are talking about. If you would not give these reporters your investment portfolio to handle, why trust them with anything else, especially where you are going to spend your retirement days?

I am not selling. I like it here.

However, it is time for all of us to get involved in civic affairs, supporting the POA and attending district governmental meetings come to mind. In regard to this IRS issue, we should be staying informed and trying to watch developments so that no resolution of the matter is cooked up that prejudices the residents to the benefit of the Developer.

It's awful easy to lulled into thinking that we live it in fantasy world, removed from real world issues. I admit that that has happened to me, and I really have not been following a lot of local political issues as closely as I might have in my pre-Villages days. Maybe this IRS issue is a wake-up call.

The Morse family has made and continues to make a ton of cash out of TV. Granted, if they have to pay back taxes, it will hurt the bottom line. However, if they do anything to diminish their investment into the lifestyle here, they open themselves up to litigation hell as home buyers will be inundated with attorney offers...some possibly class action. This will add to their loss on the IRS ruling. Don't fret....they are smart and will challenge the IRS ruling in court and if they lose, they will accept the loss. Unless their greed defies logic and they want to take on 120,000 lawsuits.

At this point in time, the developer has not spent any money to defend this issue with the IRS. The lawyer fees are being paid by the Central District CDD's which receive their funding from the homeowners' amenity fees. Therefore, it is the village homeowners who are paying for all costs involved in defending this issue.

What is the support of that statement?

It's all going to work our just fine. These are just the opening shots of what I think will be a protracted legal battle. Don't get your undies in a bundle.

"Do you realize that as we speak right now, you yourself could be one of those bondholders that you claim should be “his loss”?"

I really do not see that happening.

"Seriously. Have you ever invested in a mutual fund, be it a stock fund or a bond fund. Did you ever scrutinize the purchases and sales that the fund made while you held stock in that fund or did you just keep an eye on the total return on your investment?"

I invest plenty. Whats your point?

"Anyone that invested in a Municipal Bond Fund (usually a tax free one but not always) over the past 10 years or so is a potential current or previous bondholder of VCCDD Tax Free Bonds."

Your point?

"Am I making sense or are you still unsure of what I’m trying to tell you?

You mean.....When did i stop beating my wife.?

I agree. However, If they were going to settle, now would be a good time to do it since long term interest rates are very low however, they are not dealing with a weak person in Morse and the IRS is not exactly in favor these days.

Looks like the market, the ultimate arbiter, does not buy into your thesis and if you do, now is the time for you to buy these bonds and make a bundle.:$::$: