Page:United States Statutes at Large Volume 102 Part 4.djvu/707

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3677

"(B) EXCEPTIONS.—Such term shall not include any bond if— "(i) section 146 applies to the issue of which such bond is a part (other than by reason of section 141(b)(5)) or would apply but for section 146(i), or "(ii) section 143(1)(3) applies to such issue. "(5) DEFINITION OF LOAN; TREATMENT OF MIXED USE ISSUES.—

"(A) LOAN.—For purposes of this subsection, the term 'loan' does not include— "(i) any loan which is a nonpurpose investment (within the meaning of section 148(fK6XA), determined without regard to section 148(b)(3)), and "(ii) any use of proceeds by an agency of the issuer unless such agency is a political subdivision or instrumentality of the issuer. "(B) PORTION OF ISSUE TO BE USED FOR LOANS TREATED AS

SEPARATE ISSUE.—If Only a portion of the proceeds of an issue is reasonably expected (at the time of issuance of the bond) to be used (or is intentionally used) as described in paragraph (4)(A), such portion and the other portion of such issue shall be treated as separate issues for purposes of determining whether such portion meets the requirements of this subsection." (b) EFFECTIVE DATE.— 26 USC 149 note. (1) IN GENERAL.—The amendment made by subsection (a) shall apply to bonds issued after October 21, 1988. (2) SPECIAL RULE FOR REFUNDING BONDS.—In the case of a bond issued to refund a bond issued before October 22, 1988— (A) if the 3-year period described in section 149(fK2XA) of the 1986 Code would (but for this paragraph) expire on or before October 22, 1989, such period shall expire on October 21, 1990, and (B) if such period expires after October 22, 1989, the portion of the proceeds of the issue of which the refunded bond is a part which is available (on the date of issuance of the refunding issue) to provide loans shall be treated as proceeds of a separate issue (issued after October 21, 1988) for purposes of applying section 149(f) of the 1986 Code. SEC. 5052. TREASURY REGULATIONS RELATING TO STUDENT LOAN BONDS.

If the Secretary of the Treasury or his delegate does not issue regulations under section 625 of the Tax Reform Act of 1984 and section 148(g) of the Internal Revenue Code of 1986 before July 1, 1989, the Secretary or his delegate shall before such date submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report explaining why such regulations were not issued. SEC. 5053. RESTRICTIONS ON BONDS USED TO PROVIDE RESIDENTIAL RENTAL PROPERTY FOR FAMILY UNITS. (a) 501(c)(3) BONDS USED TO PROVIDE RESIDENTIAL RENTAL HOUSING FOR FAMILY UNITS MUST MEET TARGETING REQUIREMENTS.—

Section 145 of the 1986 Code (defining qualified 501(c)(3) bond) is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection:

Reports,

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