An issue is treated as meeting the rebate requirement if all of the following requirements are satisfied --
(i) 18-month expenditure schedule met.
The gross proceeds (as defined in paragraph (d)(3) of this section) are allocated to expenditures for a governmental purpose of the issue in accordance with the following schedule (the 18-MONTH EXPENDITURE SCHEDULE) measured from the issue date --
(A) At least 15 percent within 6 months (the FIRST SPENDING PERIOD);
(B) At least 60 percent within 12 months (the SECOND SPENDING PERIOD); and
(C) 100 percent within 18 months (the THIRD SPENDING PERIOD).
(ii) Rebate requirement met for amounts not required to be spent.
The rebate requirement is met for all amounts not required to be spent in accordance with the 18-month expenditure schedule (other than earnings on a bona fide debt service fund).
(iii) Issue qualifies for initial temporary period.
All of the gross proceeds (as defined in paragraph (d)(3)(i) of this section) of the issue qualify for the initial temporary period under section 1.148-2(e)(2).