Page:United States Statutes at Large Volume 100 Part 3.djvu/857

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2665

have not been entered into by initial borrowers to borrow at least 25 percent of the proceeds of the issue. (E) CERTAIN LONG MATURITY ISSUES.—An issue is described in this subparagraph if— (i) the maturity date of any bond issued as part of such issue exceeds 30 years, and (ii) any principal payment on any loan made or financed by the proceeds of the issue is to be used to make or finance additional loans.

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(F) SPECIAL RULES.— (i) EXCEPTION FROM SUBPARAGRAPHS (C) AND (D) WHERE SIMILAR POOLS ISSUED BY ISSUER.—An issue shall

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not be treated as described in subparagraph (C) or (D) with respect to any issue to make or finance loans to governmental units if— (I) the issuer, before 1986, issued 1 or more similar issues to make or finance loans to governmental units, and (II) the aggregate face amount of such issues issued during 1986 does not exceed 250 percent of the average of the annual aggregate face amounts of such similar issues issued during 1983, 1984, or 1985. (ii) DETERMINATION OF ISSUANCE.—For purposes of

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subparagraph (A), an issue shall not be treated as issued until— (I) the bonds issued as part of such issue are f- * IT'* offered to the public (pursuant to final offering materials), and J' (II) at least 25 percent of such bonds is sold to the •^* public. " For purposes of the preceding sentence, the sale of a bond to a securities firm, broker, or other person acting in the capacity of an underwriter or wholesaler shall not be treated as a sale to the public. (e) INFORMATION REPORTING.—In the case of a bond issued after December 31, 1986, nothing in section 103(a) of the 1986 Code or any other provision of law shall be construed to provide an exemption from Federal income tax for interest on any bond unless such bond satisfies the requirements of section 149(e) of the 1986 C!ode. A bond described in section 1312(c)(2) shall not be treated as a private activity bond for purposes of applying such requirements. (f) ABUSIVE TRANSACTION LIMITATION ON ADVANCE REFUNDINGS TO

APPLY.—In the case of a bond issued after December 31, 1986, nothing in section 103(a) of the 1986 Code or any other provision of law shall be construed to provide an exemption from Federal income tax for interest on any bond if the issue of which such bond is a part is described in paragraph (4) of section 149(d) of the 1986 Code (relating to abusive transactions). (g) SECTION TO OVERRIDE OTHER RULES.—Except as otherwise

expressly provided by reference to a provision to which a subsection of this section applies, nothing in any other section of this subtitle shall be construed as exempting any bond from the application of such provision.

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