Page:United States Statutes at Large Volume 100 Part 3.djvu/856

 100 STAT. 2664

PUBLIC LAW 99-514—OCT. 22, 1986

, i this section shall be taken into account in determining whether such section applies to any later issue. SEC. 1314. SPECIAL RULES WHICH OVERRIDE OTHER RULES IN THIS SUBTITLE. (a) ARBITRAGE RESTRICTION ON INVESTMENTS IN ANNUITIES.—In

the case of a bond issued after September 25, 1985, section 103(c) of the 1954 Code shall be applied by treating the reference to securities in paragraph (2) thereof as including a reference to an annuity contract. Oa) TEMPORARY PERIOD FOR ADVANCE REFUNDINGS.—In the case of a t)ond issued after December 31, 1985, to advance refund a bond, the initial temporary period under section 103(c) of the 1954 Code with respect to the proceeds of the refunding bond shall end not later than 30 days after the date of issue of the refunding bond. (c) DETERMINATION OF YIELD.—In the case of a bond issued after December 31, 1985, for purposes of section 103(c) of the 1954 Code, the yield on an issue shall be determined on the basis of the issue price (within the meaning of sections 1273 and 1274 of the 1986 Code). (d) ARBITRAGE REBATE REQUIREMENT.—

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(1) IN GENERAL.—Except as otherwise provided in this subsection, in the case of a bond issued after December 31, 1985, section 103 of the 1954 Code shall be treated as including the requirements of section 148(f) of the 1986 Code in order for section 103(a) of the 1954 Code to apply. (2) GOVERNMENT BONDS.—In the case of a bond described in section 1312(c)(2) (and not described in paragraph (3) of this subsection), parcigraph (1) shall be applied by substituting "August 31, 1986" for "December 31, 1985". (3) CERTAIN POOLS.—

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(A) IN GENERAL.—In the case of a bond described in section 1312(c)(2) and issued as part of an issue described in subparagraph (B), (C), (D), or (E), paragraph (1) shall be applied by substituting "3 p.m. E.D.T., July 17, 1986" for "December 31, 1985". Such a bond shall not be treated as a private activity bond for purposes of applying section 148(f) of the 1986 Code. (B)

LOANS TO UNRELATED GOVERNMENTAL UNITS.—An

issue is described in this subparagraph if any portion of the proceeds of the issue is to be used to make or finance loans to any governmental unit other than any governmental unit which is subordinate to the issuer and the jurisdiction of which is within— (i) the jurisdiction of the issuer, or (ii) the jurisdiction of the governmental unit on behalf of which such issuer issued the issue.

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(C) LESS THAN 75 PERCENT OF PROJECTS IDENTIFIED.—An

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issue is described in this subparagraph if less than 75 percent of the proceeds of the issue is to be used to make or finance loans to initial borrowers to finance projects identified (with specificity) by the issuer, on or before the date of issuance of the issue, as projects to be financed with the proceeds of the issue. (D) LESS THAN 25 PERCENT OF FUNDS COMMITTED TO BE

,„^ - BORROWED.—An issue is described in this subparagraph if, on or before the date of issuance of the issue, commitments

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