Page:United States Statutes at Large Volume 100 Part 3.djvu/828

 100 STAT. 2636

PUBLIC LAW 99-514—OCT. 22, 1986 sj;"^

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"(i) L A N D NOT TAKEN INTO ACCOUNT.—Except as pro-

•4 iif. •

vided in clause (ii), land shall not be t a k e n into account under paragraph (1)(B).

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"(ii) ISSUES WHERE 25 PERCENT OR MORE O F PROCEEDS USED TO FINANCE LAND.—If 25 p e r c e n t or more of the

net proceeds of any issue is to be used to finance land, w •*""V_ such land shall be t a k e n into account under paragraph (1)(B) and shall be t r e a t e d as having a n economic life of 30 years. "(4) SPECIAL RULE ORGANIZATION.—

FOR POOLED

FINANCING

OF

501(C)(3)

"(A) IN GENERAL.—At the election of the issuer, a qualified 501(c)(3) bond shall be t r e a t e d as meeting the requirei m e n t s of paragraph (1) if such bond meets the requirements •* of subparagraph (B). •^"(B) REQUIREMENTS.—A qualified 501(c)(3) bond meets the requirements of this subparagraph if— "(i) 95 percent or more of the n e t proceeds of the c'jir. issue of which such bond is a part a r e to be used to " '^'" ^ m a k e or finance loans to 2 or more 501(c)(3) organizations or government a l u n i t s for acquisition of property "'^-J to be used by such organizations, •'*'*'• "(ii) each loan described in clause (i) satisfies the ''" requirements of paragraph (1) (determined by t r e a t i n g each loan as a s e p a r a t e issue), .J "(iii) before such bond is issued, a d e m and survey was •.!**n conducted which shows a d e m and for financing g r e a t e r than a n a m o u n t equal to 120 percent of the lendable • 'lu. f', proceeds of such issue, and "(iv) 95 percent or more of the n e t proceeds of such ' ' issue a r e to be loaned to 501(c)(3) organizations or government a l units within 1 year of issuance and, to ,' the extent the r e a r e any u n s p e n t proceeds after such ' *''"' 1-year period, bonds issued as part of such issue a r e to be redeemed as soon as possible thereafter (and in no "'• event later than 18 months after issuance). A bond shall not meet the requirements of this subpara^ g r a p h if the m a t u r i t y date of any bond issued as part of ' ' such issue is more than 30 years after the date on which the bond w a s issued (or, in the case of a refunding or series of refundings, the date on which the original bond was issued). "(5) SPECIAL RULE FOR CERTAIN F H A INSURED L O A N S. — P a r a -

g r a p h (1) shall not apply to any bond issued as part of a n issue 95 percent or more of the n e t proceeds of which a r e to be used to finance mortgage loans insured under F H A 242 or under a similar Federal Housing Administration program (as in effect on the date of the e n a c t m e n t of the T a x Reform Act of 1986) where the loan term approved by such Administration plus the maximum m a t u r i t y of debentures which could be issued by such Administration in satisfaction of its obligations exceeds the term permitted under paragraph (1). "(c) LIMITATION ON U S E FOR L A N D ACQUISITION. —

"(1) IN GENERAL.—Except a s provided in subsection (h), a private activity bond shall not be a qualified bond if— "(A) it is issued as part of a n issue and 25 percent or more of the n e t proceeds of such issue a r e to be used (directly or

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