Page:United States Statutes at Large Volume 103 Part 3.djvu/317

 PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2385 reasonably expected that such proceeds will be spent over a reasonable construction schedule specified in such request. "(B) RULES FOR DETERiifiNiNG EXPECTATIONS. —The rules of subsection (f)(2)(B) shall apply. "(5) REGULATIONS. — The Secretary may prescribe regulations to prevent the avoidance of the rules of this subsection, includ- ing through the aggr^ation of projects within a single issue." (b) EFFECTIVE DATE.— 26 USC 149 note. (1) IN GENERAL. —Except as otherwise provided in this subsec- tion, the amendment made by subsection (a) shall apply to bonds issued after September 14, 1989. (2) BONDS SOLD BEFORE SEPTEMBER IS, 1989.— The amendment made by subsection (a) shall not apply to any bond sold before ^ September 15, 1989, and issued before October 15, 1989. (3) BONDS WITH RESPECT TO WHICH PRELIMINARY OFFERING MATERIAL MAILED.— The amendment made by subsection (a) shall not apply to any issue issued after the date of the enact- ment of this Act if the preliminary offering materials with respect to such issue were mailed (or otherwise delivered) to members of the underwriting syndicate before September 15, 1989. (4) CERTAIN OTHER BONDS. —In the case of a bond issued before January 1, 1991, with respect to which official action was taken (or a series of official actions were taken), or other comparable \ preliminary approval was given, before November lb, 1989, demonstrating an intent to issue such bonds in a maximum specified amount for such issue or with a maximum specified amount of net proceeds of such issue, the issuer may elect to apply section 149(g)(2) of the Internal Revenue Code of 1986 (as added by this section) by substituting "15 percent" for "10 percent in subparagraph (A) and "50 percent for "60 percent" m subparagraph (C). (5) BONDS ISSUED TO FINANCE SELF-INSURANCE FUNDS. —The amendment made by subsection (a) shall not apply to any bonds issued before July 1, 1990, to finance a self-insurance fund if official action was taken (or a series of official actions were taken), or other comparable preliminary approval was ^ven, before September 15, 1989, demonstrating an intent to issue '^ such bonds in a maximum specified amount for such issue or with a maximum specified amount of net proceeds of such issue. SEC 7652. EXCEPTIONS FROM ARBITRAGE REBATE REQUIREMENT. (a) IN GENERAL. — Clause (i) of section 148(fK4)(B) (relating to tem- porary investments) is amended to read as follows: "(i) IN GENERAL. —An issue shall, for purposes of this subsection, be treated as meeting the requirements of J paragraph (2) if— "(I) the gross proceeds of such issue are expended for the governmental purposes for which the issue was issued no later than the day which is 6 months after the date of issuance of the issue, and "(ID the requirements of paragraph (2) are met after such 6 months with resp^ to earnings on amounts in any reasonably required reserve or replacement fund. Gross proceeds which are held in a bona fide debt service fund or a reasonably required reserve or

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