Page:United States Statutes at Large Volume 100 Part 3.djvu/1076

 100 STAT. 2884

PUBLIC LAW 99-514—OCT. 22, 1986 (d) CLERICAL AMENDMENTS.—

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(1) Subparagraph (B) of section 25(a)(1) is amended by striking out "paid or incurred" and inserting in lieu thereof "paid or ^^ accrued", (2) Subchapter B of chapter 68 is amended by redesignating , the section 6708 which relates to penalties with respect to ' mortgage credit certificates as section 6709. (3) The table of sections for subchapter B of chapter 68 is amended by striking out the item relating to the section 6708 which relates to penalties with respect to mortgage credit certificates and inserting in lieu thereof the following: ' •

' Sec. 6709. Penalties with respect to mortgage credit certificates.

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SEC. 1863. AMENDMENT RELATED TO SECTION 613 OF THE ACT.

(a) GENERAL RULE.—Section 613 of the Tax Reform Act of 1984 (relating to authority to borrow from Federal Financing Bank) is amended to read as follows: "SEC. 613. ADVANCE REFUNDING OF CERTAIN VETERANS' MORTGAGE BONDS PERMITTED.

"(a) IN GENERAL.—Notwithstanding section 103A(n) of the Internal Revenue Code of 1954, an issuer of applicable mortgage bonds may issue advance refunding bonds with respect to such applicable mortgage bonds. "(h)

LIMITATION

ON

AMOUNT

OF

ADVANCED REFUNDING.—

"(1) IN GENERAL.—The amount of advanced refunding bonds which may be issued under subsection (a) shall not exceed the 16SS6F or

"(A) $300,000,000, or "(B) the excess of— "(i) the projected aggregate payments of principal on f, *' *' the applicable mortgage bonds during the 15-fiscal year period beginning with fiscal year 1984, over "(ii) the projected aggregate pa3mients during such luty* u period of principal on mortgages financed by the applicable mortgage bonds. "(2) ASSUMPTIONS USED IN MAKING PROJECTION.—The computation under paragraph (I)(B) shall be made by using the following percentages of the prepayment experience of the Federal Housing Administration in the State or region in which the issuer of the advance refunding bonds is located: "Fiscal Year: 1984 1985 1986 1987 and thereafter

Percentage: 15 20 25 30.

"(c) DEFINITIONS.—For purposes of this section.— "(1) APPLICABLE MORTGAGE BONDS.—The term 'applicable mortgage bonds' means any qualified veterans' mortgage bonds issued as part of an issue— "(A) which was outstanding on December 31, 1981, "(B) with respect to which the excess determined under subsection OJXIXB) exceeds 12 percent of the aggregate principal amount of such bonds outstanding on July 1, 1983, ' "(C) with respect to which the amount of the average -fannual prepayments during fiscal years 1981, 1982, and 1983 was less than 2 percent of the average of the loan

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