Page:United States Statutes at Large Volume 100 Part 3.djvu/811

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2619

"(C) LIMITED EQUITY COOPERATIVE H O U S I N G. — For purposes

of this paragraph, housing' means any to occupy by reason cooperative housing

the term 'limited equity cooperative dwelUng u n i t which a person is entitled of his ownership of stock in a qualified corporation.

'(D) QUALIFIED COOPERATIVE HOUSING CORPORATION.—For

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purposes of this paragraph, the term 'qualified cooperative housing corporation' means any cooperative housing corporation (as defined in section 216(b)(1)) if— "(i) the consideration paid for stock held by any stockholder entitled to occupy any house or a part m e n t in a building owned or leased by the corporation may not exceed the s u m of— "(I) the consideration paid for such stock by the first such stockholder, as adjusted by a cost-ofliving adjustment determined by the Secretary, "(II) payments m a d e by any stockholder for improvements to such house or a part m e n t, and "(III) payments (other than a m o u n t s t a k e n into account under subclause (I) or (ID) a t t r i b u t a b l e to any stockholder to amortize the principal of the corporation's indebtedness arising from the ac,, quisition or development of real property, including improvements thereof, "(ii) the value of the corporation's assets (reduced by any corporate liabilities), to the e x t e n t such value exceeds the combined transfer values of the o u t s t and i n g corporate stock, shall be used only for public benefit or ' c h a r i t a b l e purposes, or directly to benefit the corporation itself, and shall not be used directly to benefit any stockholder, and "(iii) a t the t i m e of issuance of the issue, such corporation m a k e s a n election under this paragraph. "(E) E F F E C T OF ELECTION.—If a cooperative housing cor-

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poration m a k e s a n election under this paragraph, section 216 shall not apply with respect to such corporation (or any successor thereof) during the qualified project period (as defined in section 142(d)(2)). "(F)

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CORPORATION MUST CONTINUE TO BE QUALIFIED CO-

OPERATIVE.—Subparagraph (A)(i) shall not apply to limited equity cooperative housing unless the cooperative housing corporation continues to be a qualified cooperative housing corporation a t all times during the qualified project period (as defined in section 142(d)(2)). "(G) ELECTION IRREVOCABLE.—Any election under this paragraph, once made, shall be irrevocable.

"(1) ADDITIONAL REQUIREMENTS FOR QUALIFIED V E T E R A N S ' M O R T -

GAGE BONDS.—An issue meets the requirements of this subsection only if it meets the requirements of paragraph s (1), (2), and (3). "(1)

V E T E R A N S TO W H O M F I N A N C I N G MAY BE PROVIDED.—An

issue meets the requirements of this paragraph only if each mortgagor to whom financing is provided under the issue is a qualified v e t e r a n. "(2) REQUIREMENT THAT STATE PROGRAM BE IN EFFECT BEFORE

JUNE 22, 1984.—An issue m e e t s the requirements of this para> g r a p h only if it is a general obligation of a State which issued ^ qualified veterans ' mortgage bonds before June 22, 1984.

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