Page:United States Statutes at Large Volume 100 Part 3.djvu/817

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2625

"(11) LIMITATION ON ACQUISITION OF DEPRECIABLE FARM PROPERTY.—

"(A) IN GENERAL.—This subsectionshall not apply to any issue if more than $250,000 of the net proceeds of such issue are to be used to provide depreciable farm property with respect to which the principal user is or will be the same person or 2 or more related persons. "(B) DEPRECIABLE FARM PROPERTY.—For purposes of this paragraph, the term 'depreciable farm property' means property of a character subject to the allowance for depreciation which is to be used in a trade or business of farming. "(C) PRIOR ISSUES TAKEN INTO ACCOUNT.—In determining the amount of proceeds of an issue to be used as described in subparagraph (A), there shall be taken into account the aggregate amount of each prior issue to which paragraph (1) (or the corresponding provisions of prior law) applied which were or will be so used. "(12) TERMINATION DATES.—

"(A) IN GENERAL.—This subsection shall not apply to— "(i) any bond (other than a borld described in clause (ii)) issued after December 31, 1986, or "(ii) any bond issued to refund a bond issued on or before such date unless— "(I) the refunding bond has a maturity date not later than the maturity date of the refunded bond, "(II) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, "(III) the interest rate on the refunding bond is lower than the interest rate on the refunded bond, and "(IV) the net proceeds of the refunding bond are used to redeem the refunded bond not later than 90 days after the date of the issuance of the refunding bond. i^

"(B) BONDS ISSUED TO FINANCE MANUFACTURING FACILITIES AND FARM PROPERTY.—In the case of any bond issued as part

of an issue 95 percent or more of the net proceeds of which are to be used to provide— "(i) any manufacturing facility, or "(ii) any land or property in accordance with section 147(c)(2), subparagraph (A) shall be applied by substituting '1989' for '1986'. "(C) MANUFACTURING FACILITY.—For purposes of this paragraph, the term 'manufacturing facility' means any facility which is used in the manufacturing or production of tangible personal property (including the processing resulting in a change in the condition of such property). A rule similar to the rule of section 1420t>)(2) shall apply for purposes of the preceding sentence. '(b) QUALIFIED STUDENT LOAN BOND.—For purposes of this part— "(1) IN GENERAL.—The term 'qualified student loan bond' means any bond issued as part of an issue the applicable percentage or more of the net proceeds of which are to be used directly or indirectly to make or finance student loans under—

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