Page:United States Statutes at Large Volume 100 Part 3.djvu/846

 100 STAT. 2654

PUBLIC LAW 99-514—OCT. 22, 1986 "(2)

QUALIFIED SCHOLARSHIP FUNDING BOND DEFINED.—The

term 'qualified scholarship funding bond' means a bond issued by a corporation which— "(A) is a corporation not for profit established and operV ated exclusively for the purpose of acquiring student loan ij notes incurred under the Higher Education Act of 1965, and "(B) is organized at the request of the State or 1 or more political subdivisions thereof or is requested to exercise such power by 1 or more political subdivisions and required by its corporate charter and bylaws, or required by State fv ]g^^ ^Q devote any income (after payment of expenses, debt service, and the creation of reserves for the same) to the purchase of additional student loan notes or to pay over any income to the United States. "(e) BONDS OF CERTAIN VOLUNTEER FIRE DEPARTMENTS.—For purposes of this part and section 103— "(1) IN GENERAL.—A bond of a volunteer fire department shall be treated as a bond of a political subdivision of a State if— "(A) such department is a qualified volunteer fire depart'" ment with respect to an area within the jurisdiction of such ' ' political subdivision, and "(B) such bond is issued as part of an issue 95 percent or more of the net proceeds of which are to be used for the acquisition, construction, reconstruction, or improvement of a firehouse or firetruck used or to be used by such department. "(2) QUALIFIED VOLUNTEER FIRE DEPARTMENT.—For purposes of this subsection, the term 'qualified volunteer fire department' means, with respect to a political subdivision of a State, any , organization— "(A) which is organized and operated to provide firefight, ing or emergency medical services for persons in an area (within the jurisdiction of such political subdivision) which is not provided with any other firefighting services, and "(B) which is required (by written agreement) by the ,.? political subdivision to furnish firefighting services in such area." (c) AMENDMENT TO ARBITRAGE REGULATIONS.—The provision in

the Federal income tax regulations relating to the arbitrage requirements which permits a higher yield on acquired obligations if the issuer elects to waive the benefits of the temporary period provisions shall not apply to bonds issued after August 31, 1986. (d) STATE AND LOCAL GOVERNMENT SERIES MODIFICATIONS.—Not-

withstanding any other provision of law or any regulations promulgated thereunder (including the provisions of 31 CFR part 344) the Secretary of the Treasury shall extend by January 1, 1987, the State and Local Government Series program to provide— (1) instruments allowing flexible investment of bond proceeds in a manner eliminating the earning of rebatable arbitrage, (2) demand deposits under such program by eliminating ad*?" vance notice and minimum maturity requirements related to the purchase of bonds, sj (3) operation of such program at no net cost to the Federal Government, and '' (4) deposits for a stated maturity under reasonable advance ^' notice requirements.

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