Aquila Investment Management Praises Supreme Court Ruling on Municipal Bonds as Victory for States and Shareholders.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Aquila Investment Management LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , adviser to a family of seven single-state tax-free municipal bond funds Municipal Bond Fund A mutual fund that invests in municipal bonds, operating either as an investment trust or as an open-end fund. Notes: Because the bonds are local government issues, they usually help to maximize tax-exempt income. , today applauded the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Supreme Court's ruling in Kentucky v. Davis, which upheld the right of states to tax interest on out-of-state municipal bonds while exempting their own bond interest from taxation. "This ruling, which allows the states to continue to exempt their own bonds from taxation, represents a victory for the single-state municipal bond market and re-emphasizes the fundamental role it plays in financing vital municipal projects, such as roads, schools, and hospitals at both the state and local levels," stated Diana Herrmann, Aquila's Chief Executive Officer. The ruling came as a result of a Kentucky lawsuit filed in 2003, in which the plaintiffs challenged the constitutionality of Kentucky's practice of taxing other states' bonds, while exempting its own. "In addition to re-emphasizing the importance of tax-exempt status for municipal bonds as a means for states to support their infrastructures, it also represents a victory for local shareholders, who can continue to invest in their own backyards and communities," Herrmann added. The Aquila Group of Funds group of funds See family of funds. (sm) has made its mark as a niche player in the mutual-fund industry, with seven single-state municipal bond funds Single-state municipal bond fund A mutual fund investing only in government obligations within a single state, with state tax-free dividends, but taxed capital gains. , including one in Arizona, Colorado, Hawaii, Kentucky, Oregon, Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. and Utah. The funds invest in each state through municipal securities issued by various state, county and community agencies to provide shareholders of those states with income exempt from both state and federal taxes. In addition, the Aquila Group of Funds(sm) also manages a regional equity fund, a high-yield corporate bond fund and three money market funds. For a free prospectus, contact your Financial Professional, or call 1-800-437-1020 or visit www.aquilafunds.com. Please read it carefully before you invest or send money. |
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