Page:United States Statutes at Large Volume 90 Part 2.djvu/434

 90 STAT. 1902

26 USC 271 note. 26 USC 103.

PUBLIC LAW 94-455—OCT. 4, 1976 " (c) EXCEPTION.—In the case of a tax p a y e r who uses a n accrual method of accounting, subsection (a) shall not apply to a debt which accrued as a receivable on a bona fide sale of goods or services i n the ordinary course of the taxpayer's trade or business if— " (1) for the taxable year in which such receivable accrued, more than 30 percent of all receivables which accrued in the ordinary course of the trades and businesses of the tax p a y e r were due from political parties, and " (2) the taxpayer made substantial continuing efforts to collect on the debt." (b) ErFECTivE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1975. SEC. 2105. TAX-EXEMPT BONDS FOR STUDENT LOANS. (a) IN GENERAL.—Section 103(a) (relating to interest on certain governmental obligations) is amended by striking out " o r " a t the end of paragraph (2), striking out the period at the end of paragraph (3) and inserting in lieu thereof "; or", and by adding a t the end thereof the following: " (4) qualified scholarship funding bonds." (b) DEFINITION OF QUALIFIED SCHOLARSHIP F U N D I N G BONDS.—Sec-

tion 103 is amended by redesignating subsection (f) as (g), and by inserting after subsoction (e) the following new subsection: "(f)

20 USC 1001 o****-

I

QUALIFIED SCHOLARSHIP F U N D I N G B O N D S. — For purposes of

subsection (a), the term 'qualified scholarship funding bonds' means obligations issued by a corporation which— " (1) is a corporation not for profit established and operated exclusively for the purpose of acquiring student loan notes incurred under the H i g h e r Education Act of 1965, and " (2) is organized a t the request of a State or one or more political subdivisions thereof or is requested to exercise such power by one or more political subdivisions and required by its corporate charter and bylaws, or required by State law, to devote any income (after payment of expenses, debt service, and the creation of reserves for the same) to the purchase of additional student loan notes or to p a y over any income to the State o r a political subdivision thereof." (c) CONFORMING AMENDMENTS. —

(1) Section 103(d) (relating to arbitrage bonds) is amended by redesignating paragraph (5) as paragraph (6) and inserting after paragraph (4) the following new paragraph: "(5)

20 USC 1078a.

26 USC 103 "°*®26 USC 543.

STUDENT LOAN INCENTIVE PAYMENTS.—Payments made by

the Commissioner of Education pursuant to section 2 of the E m e r gency Insured Student Loan Act of 1969 are not to be taken into account, for purposes of subsection (d)(2)(A), in determining yields on student loan notes." (2) Section 103(d) (relating to arbitrage bonds) is amended by striking out " (a)(1) " each place it appears in paragraph (1) (including the heading) and paragraph (2) and inserting in lieu thereof " (a)(1) o r (4) ". (d) EFFECTIVE DATE.—The amendments made by this section apply to obligations issued on or after the date of the enactment of this Act. SEC. 2106. PERSONAL HOLDING COMPANY INCOME AMENDMENTS. (a) IN GENERAL.—Section 5 4 3 (a)(6) (relating to definition of personal holding company income) is amended to read as follows: " (6) U S E OF CORPORATE PROPERTY BY SHAREHOLDER.—

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