Page:United States Statutes at Large Volume 118.djvu/2329

 118 STAT. 2299 PUBLIC LAW 108–409—OCT. 30, 2004 Public Law 108–409 108th Congress An Act To reduce certain special allowance payments and provide additional teacher loan forgiveness on Federal student loans. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Taxpayer Teacher Protection Act of 2004’’. SEC. 2. REDUCTION OF SPECIAL ALLOWANCE PAYMENTS FOR LOANS FROM THE PROCEEDS OF TAX EXEMPT ISSUES. Section 438(b)(2)(B) (20 U.S.C. 1087–1(b)(2)(B)) is amended— (1) in clause (i), by striking ‘‘this division’’ and inserting ‘‘this clause’’; (2) in clause (ii), by striking ‘‘division (i) of this subpara graph’’ and inserting ‘‘clause (i) of this subparagraph’’; (3) in clause (iv), by inserting ‘‘or refunded after September 30, 2004, and before January 1, 2006,’’ after ‘‘October 1, 1993,’’; and (4) by adding at the end the following new clause: ‘‘(v) Notwithstanding clauses (i) and (ii), the quarterly rate of the special allowance shall be the rate determined under subparagraph (A), (E), (F), (G), (H), or (I) of this paragraph, or paragraph (4), as the case may be, for a holder of loans that— ‘‘(I) were made or purchased with funds— ‘‘(aa) obtained from the issuance of obligations the income from which is excluded from gross income under the Internal Revenue Code of 1986 and which obliga tions were originally issued before October 1, 1993; or ‘‘(bb) obtained from collections or default reimbursements on, or interest or other income per taining to, eligible loans made or purchased with funds described in division (aa), or from income on the invest ment of such funds; and ‘‘(II) are— ‘‘(aa) financed by such an obligation that, after September 30, 2004, and before January 1, 2006, has matured or been retired or defeased; ‘‘(bb) refinanced after September 30, 2004, and before January 1, 2006, with funds obtained from a source other than funds described in subclause (I) of this clause; or Taxpayer Teacher Protection Act of 2004. 20 USC 1001 note. Oct. 30, 2004 [H.R. 5186]

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