Page:United States Statutes at Large Volume 100 Part 3.djvu/860

 100 STAT. 2668

PUBLIC LAW 99-514—OCT. 22, 1986 (B) subparagraph (E) of subsection (a)(1) thereof referred to section 149(b) of the 1986 Code. ., ^^ (c) CERTAIN STATE PROGRAMS.—

(1) IN GENERAL.—A bond described in paragraph (2) shall be treated as described in section 141(d)(1) of the 1986 Code. (2) BOND DESCRIBED.—A bond is described in this paragraph if such bond is issued as part of an issue 95 percent or more of the net proceeds of which are to be used to carry out a program established under sections 280A, 280B, and 280C of the Iowa Code, but only if— (A) such program has been in effect in substantially the lol same form since July 1, 1983, and .i'-H^i i (B) such proceeds are to be used to make loans or fund similar obligations for the same purposes as permitted ?1« under such program on July 1, 1986. (3) $100,000,000 LIMITATION.—The aggregate face amount of 'I- outstanding bonds to which this subsection applies shall not exceed $100,000,000. (d) USE BY CERTAIN FEDERAL INSTRUMENTALITIES TREATED AS USE B GOVERNMENTAL UNITS.—Use by an instrumentality of the United Y

States shall be treated as use by a State or local governmental unit for purposes of section 103, and part IV of subchapter B of chapter 1, of the 1986 Code with respect to a program approved by Congress before August 3, 1972, but only if— ( D a portion of such program has been financed by bonds issued before such date, to which section 103(a) of the 1954 Code applied pursuant to a ruling issued by the Commissioner of the ' Internal Revenue Service, and (2) construction of 1 or more facilities comprising a part of such program commenced before such date. (e) REFUNDING PERMITTED OF CERTAIN BONDS INVESTED IN FEDERALLY INSURED DEPOSITS

(1) IN GENERAL.—Section 149(b)(2)(B)(ii) of the 1986 Code shall not apply to any bond issued to refund a bond— (A) which, when issued, would have been treated as federally guaranteed by reason of being described in clause (ii) of section 103(h)(2)(B) of the 1954 Code if such section had ,». (B)(i) which was issued before April 15, 1983, or (ii) to which such clause did not apply by reason of the except clause in section 631(c)(2) of the Tax Reform Act of 1984. Section 147(c) of the 1986 Code shall not apply to any refunding bond permitted under the preceding sentence if section 103(b)(16) of the 1954 Code did not apply to the refunded bond when issued. (2) REQUIREMENTS.—A refunding bond meets the requirements of this paragraph if— (A) the refunding bond has a maturity date not later than the maturity date of the refunded bond, (B) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, (C) the weighted average interest rate on the refunding bond is lower than the weighted average interest rate on the refunded bond, and ,.
 * applied to such bond, and

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