Page:United States Statutes at Large Volume 119.djvu/2608

 119 STAT. 2590

PUBLIC LAW 109–135—DEC. 21, 2005 ‘‘(i) the bond is issued by the State of Alabama, Louisiana, or Mississippi, ‘‘(ii) 95 percent or more of the proceeds of such issue are to be used to— ‘‘(I) pay principal, interest, or premiums on qualified bonds issued by such State or any political subdivision of such State, or ‘‘(II) make a loan to any political subdivision of such State to pay principal, interest, or premiums on qualified bonds issued by such political subdivision, ‘‘(iii) the Governor of such State designates such bond for purposes of this subsection, ‘‘(iv) the bond is a general obligation of such State and is in registered form (within the meaning of section 149(a)), ‘‘(v) the maturity of such bond does not exceed 2 years, and ‘‘(vi) the bond is issued after December 31, 2005, and before January 1, 2007. ‘‘(B) STATE MATCHING REQUIREMENT.—A bond shall not be treated as a Gulf tax credit bond unless— ‘‘(i) the issuer of such bond pledges as of the date of the issuance of the issue an amount equal to the face amount of such bond to be used for payments described in subclause (I) of subparagraph (A)(ii), or loans described in subclause (II) of such subparagraph, as the case may be, with respect to the issue of which such bond is a part, and ‘‘(ii) any such payment or loan is made in equal amounts from the proceeds of such issue and from the amount pledged under clause (i). The requirement of clause (ii) shall be treated as met with respect to any such payment or loan made during the 1-year period beginning on the date of the issuance (or any successor 1-year period) if such requirement is met when applied with respect to the aggregate amount of such payments and loans made during such period. ‘‘(C) AGGREGATE LIMIT ON BOND DESIGNATIONS.—The maximum aggregate face amount of bonds which may be designated under this subsection by the Governor of a State shall not exceed— ‘‘(i) $200,000,000 in the case of the State of Louisiana, ‘‘(ii) $100,000,000 in the case of the State of Mississippi, and ‘‘(iii) $50,000,000 in the case of the State of Alabama. ‘‘(D) SPECIAL RULES RELATING TO ARBITRAGE.—A bond which is part of an issue shall not be treated as a Gulf tax credit bond unless, with respect to the issue of which the bond is a part, the issuer satisfies the arbitrage requirements of section 148 with respect to proceeds of the issue and any loans made with such proceeds. ‘‘(5) QUALIFIED BOND.—For purposes of this subsection—

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