Page:United States Statutes at Large Volume 102 Part 4.djvu/577

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3547

(E) A refunding bond issued before July 1, 1987, shall be 26 USC 141 note. treated as meeting the requirement of subparagraph (A) of section 1313(c)(l) of the Reform Act if such bond met the requirement of such subparagraph as in effect before the amendments made by this paragraph. (12XA) Subparagraph (N) of section 103(b)(6) of the Internal Revenue Code of 1954, as in effect on the day before the date of the enactment of the Reform Act (relating to termination dates), is amended by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively, and by striking out clause (i) and inserting in lieu thereof the following new clauses: "(i) IN GENERAL.—Except as provided in clause (ii), this paragraph shall not apply to any obligation issued after December 31, 1986. "(ii) CERTAIN REFTJNDINGS.—This paragraph shall apply to any obligation (or series of obligations) issued to refund an obligation issued on or before December 31, 1986, if— "(I) the average maturity date of the issue of which the refmuting obligation is a part is not later than the average maturity date of the obligations to be refunded by such issue, "(ID the amount of the refunding obligation does not exceed the outstanding amount of the refunded obligation, and "OJD the proceeds of the refunding obligation are used to redeem the refunded obligation not later than 90 days after the date of the issuance of the refunding obligation. For purposes of subclause (I), average maturity shall be determined in accordance ¥dth subsection (b)(14)(B)(i)." (B) The date applicable under section 144(a)(12)(B) of the 1986 26 USC 144 note. Code shall be treated as contained in section 103(b)(6)(N)(iii) of the Internal Revenue C!ode of 1954, as in effect on the day before the date of the enactment of the Reform Act, for purposes of any bond issued to refund a bond to which such section 103(b)(6)(N)(iii) applies. (13) Paragraph (2) of section 1313(c) of the Reform Act is 26 USC 141 note. amended— (A) by striking out "apply to any bond" and inserting in lieu thereof "apply to any bond (or series of bonds)", (B) by striking out "subsection does not" and inserting in lieu thereof "subsection did not", and (CJ) by striking out "the proceeds" in subparagraph (AXD and inserting in lieu thereof "the net proceeds". (14XA) Section 1313 of the Reform Act is amended by adding at the end thereof the following new subsection: "(d) MORTGAGE AND STUDENT LOAN TARGETING RULES TO APPLY TO LOANS MADE MORE THAN 3 YEARS AFTER THE DATE OF THE ORIGINAL

ISSUE.—Subsections (a)(3) and (b)(3) shall be treated as including the requirements of subsections (e) and (f) of section 143 and paragraphs (3) and (4) of section 144(b) of the 1986 Code with respect to bonds the proceeds of which are used to finance loans made more than 3 years after the date of the issuance of the original bond." (B) The amendment made by subparagraph (A) shall apply with respect to refunding bonds issued after October 16, 1987.

19-194 O _ 0 1 _ p o r t i-

26 USC 141 note.

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