Page:United States Statutes at Large Volume 100 Part 3.djvu/795

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2603

"(3) BOND NOT IN REGISTERED FORM, ETC.—Any bond unless such bond meets the applicable requirements of section 149. "(c) DEFINITIONS.—For purposes of this section and part IV— "(1) STATE OR LOCAL BOND.—The term 'State or local bond' means an obligation of a State or political subdivision thereof "(2) STATE.—The term 'State' includes the District of Columbia and any possession of the United States." (b) TAX EXEMPTION REQUIREMENTS FOR STATE AND LOCAL BONDS.—

Part IV of subchapter B of chapter 1 (relating to determination of marital status) is amended to read as follows: "PART IV—TAX EXEMPTION REQUIREMENTS FOR STATE AND LOCAL BONDS •' t

"Subpart A. Private activity bonds. "Subpart B. Requirements applicable to all State and local bonds. "Subpart C. Definitions and special rules.

"Subpart A—Private Activity Bonds "Sec. "Sec. "Sec.

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141. Private activity bond; qualified bond. 142. Exempt facility bond. 143. Mortgage revenue bonds: qualified mortgage and qualified veterans' mortgage bond. "Sec. 144. Qualified small issue bond; qualified student loan bond; qualified redevelopment bond. "Sec. 145. Qualified 501(c)(3) bond. "Sec. 146. Volume cap. "Sec. 147. Other requirements applicable to certain private activity bonds.

"SEC. 141. PRIVATE ACTIVITY BOND; QUALIFIED BOND.

"(a) PRIVATE ACTIVITY BOND.—For purposes of this title, the term 'private activity bond' means any bond issued as part of an issue— "(1) which meets— "(A) the private business use test of paragraph (1) of subsection (b), and "(B) the private security or payment test of paragraph (2) of subsection (b), or (c). "(b) PRIVATE BUSINESS TESTS.— "(1) PRIVATE BUSINESS USE TEST.—Except as otherwise pro-
 * i "(2) which meets the private loan financing test of subsection

vided in this subsection, an issue meets the test of this paragraph if more than 10 percent of the proceeds of the issue are to be used for any private business use. "(2) PRIVATE SECURITY OR PAYMENT TEST.—Except as otherwise

provided in this subsection, an issue meets the test of this paragraph if the payment of the principal of, or the interest on, more than 10 percent of the proceeds of such issue is (under the terms of such issue or any underlying arrangement) directly or indirectly— "(A) secured by any interest in— "(i) property used or to be used for a private business use, or ' ''' "(ii) payments in respect of such property, or "(B) to be derived from payments (whether or not to the issuer) in respect of property, or borrowed money, used or to be used for a private business use.

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