Page:United States Statutes at Large Volume 100 Part 3.djvu/803

 PUBLIC LAW 99-514—OCT. 22, 1986 ^:

100 STAT. 2611

requirements of subsections (g) and (h) shall be treated as meeting such requirements if— "(i) the issuer in good faith a t t e m p t e d to meet all such requirements, and "(ii) any failure to meet such requirements is due to inadvertent error after taking reasonable steps to comply with such requirements. "(b)

QUALIFIED V E T E R A N S ' MORTGAGE B O N D D E F I N E D. — For pur-

poses of this part, the term 'qualified veterans ' mortgage bond' means any bond— "(1) which is issued as part of a n issue 95 percent or more of the net proceeds of which a r e to be used to provide residences for veterans, f|- secured by the general obligation of a State, "(3) which is part of an issue which meets the requirements of "(4) which does not meet the private business tests of paragraphs (1) and (2) of section 141(b). Rules similar to the rules of subparagraph s (B) and (C) of subsection (a)(2) shall apply to the requirements specified in paragraph (3) of this subsection. "(c) RESIDENCE REQUIREMENTS. —
 * ,"(2) the payment of the principal and interest on which is
 * > subsections (c), (g), (i)(l), and (1), and

H« Q. I

"(1) FOR A RESIDENCE.—A residence meets the requirements of this subsection only if— "(A) it is a single-family residence which can reasonably be expected to become the principal residence of the mortgagor within a reasonable time after the financing is provided, and "(B) it is located within the jurisdiction of the authority issuing the bond. "(2) FOR AN ISSUE.—An issue meets the requirements of this subsection only if all of the residences for which owner-financing is provided under the issue meet the requirements of paragraph (1).

"(d) 3-YEAR REQUIREMENT. —

"(1) IN GENERAL.—An issue meets the requirements of this subsection only if 95 percent or more of the net proceeds of such issue a r e used to finance the residences of mortgagors who had no present ownership interest in their principal residences at '.. any t i m e during the 3-year period ending on the date their mortgage is executed. jj^ "(2) EXCEPTIONS.—For purposes of paragraph (1), the proceeds tj of an issue which a r e used to provide— "(A) financing with respect to targeted a r e a residences, K. - ^^ and "(B) qualified home improvement loans and qualified rehabilitation loans, shall be treated as used as described in paragraph (1). "(3) MORTGAGOR'S INTEREST IN RESIDENCE BEING FINANCED.—

For purposes of paragraph (1), a mortgagor's interest in the residence with respect to which the financing is being provided shall not be t a k e n into account. "(e) P U R C H A S E P R I C E REQUIREMENT. —

ll

"(1) IN GENERAL.—An issue meets the requirements of this subsection only if the acquisition cost of each residence the owner-financing of which is provided under the issue does not

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