Page:United States Statutes at Large Volume 100 Part 3.djvu/831

 PUBLIC LAW 99-514—OCT. 22, 1986 i

"(C)

100 STAT. 2639

PERIOD DURING WHICH EXPENDITURES MUST BE IN-

CURRED.—The term 'rehabilitation expenditures' shall not include any amount which is incurred after the date 2 years after the later of— "(i) the date on which the building was acquired, or "(ii) the date on which the bond was issued. "(4) SPECIAL RULE FOR CERTAIN PROJECTS.—In the case of a project involving 2 or more buildings, this subsection shall be applied on a project basis. "(e) No PORTION OF BONDS MAY BE ISSUED FOR SKYBOXES, AIRPLANES, GAMBLING ESTABLISHMENTS, ETC.—A private activity bond

shall not be treated as a qualified bond if issued as part of an issue and any portion of the proceeds of such issue is to be used to provide any airplane, skybox or other private luxury box, health club facility, facility primarily used for gambling, or store the principal business of which is the sale of alcoholic beverages for consumption off premises. "(f) PUBLIC APPROVAL REQUIRED FOR PRIVATE ACTIVITY BONDS.—

"(1) IN GENERAL.—A private activity bond shall not be a qualified bond unless such bond satisfies the requirements of paragraph (2). "(2) PUBLIC APPROVAL REQUIREMENT.—

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"(A) IN GENERAL.—A bond shall satisfy the requirements of this paragraph if such bond is issued as a part of an issue which has been approved by— "(i) the governmental unit— "(I) which issued such bond, or "(II) on behalf of which such bond was issued, and "(ii) each governmental unit having jurisdiction over the area in which any facility, with respect to which financing is to be provided from the net proceeds of such issue, is located (except that if more than 1 governmental unit within a State has jurisdiction over the entire area within such State in which such facility is located, only 1 such unit need approve such issue). "(B) APPROVAL BY A GOVERNMENTAL UNIT.—For purposes



of subparagraph (A), an issue shall be treated as having been approved by any governmental unit if such issue is approved— "(i) by the applicable elected representative of such governmental unit after a public hearing following reasonable public notice, or "(ii) by voter referendum of such governmental unit. "(C) SPECIAL RULES FOR APPROVAL OF FACILITY.—If there has been public approval under subparagraph (A) of the plan for financing a facility, such approval shall constitute approval under subparagraph (A) for any issue— "(i) which is issued pursuant to such plan within 3 years after the date of the 1st issue pursuant to the approval, and "(ii) all or substantially all of the proceeds of which are to be used to finance such facility or to refund previous financing under such plan. "(D) REFUNDING BONDS.—NO approval under subparagraph (A) shall be necessary with respect to any bond which is issued to refund (other than to advance refund) a bond

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