Page:United States Statutes at Large Volume 94 Part 3.djvu/823

 PUBLIC LAW 96-595—DEC. 24, 1980

94 STAT. 3467

"(ii) a country designated by the President as not being a lesser developed country.". (c) TECHNICAL AMENDMENTS.—

(1) The heading for such section 911 of such Code is amended by 26 USC 911. inserting "OR FROM CHARITABLE SERVICES" after "CAMPS". (2) The item relating to section 911 in the table of sections for subpart B of part III of subchapter N of chapter 1 of such Code is amended by inserting "or from charitable services" after "camps". (d) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 911 note, apply to taxable years beginning after December 31, 1978. SEC. 5. ARBITRAGE REQUIREMENTS FOR MORTGAGE SUBSIDY BONDS.

(a) GENERAL RULE.—Paragraph (4) of section 103A(i) of the Internal Revenue Code of 1954 (relating to requirements related to arbi- ^"^^' P- 2660. trage) is amended by adding at the end thereof the following new subparagraphs: "(C) REDUCTION WHERE ISSUER DOES NOT USE FULL i PERCENTAGE POINT UNDER PARAGRAPH (2).—

"(i) IN GENERAL.—The amount required to be paid or credited to mortgagors under subparagraph (A) (determined under this paragraph without regard to this subparagraph) shall be reduced by the unused paragraph (2) amount. "(ii) UNUSED PARAGRAPH (2) AMOUNT.—For purposes of clause (i), the unused paragraph (2) amount is the amount which (if it were treated as an interest payment made by mortgagors) would result in the excess referred to in paragraph (2)(A) being equal to 1 percentage point. Such amount shall be fixed and determined as of the yield determination date. "(D) ELECTION TO PAY UNITED STATES.—Subparagraph (A)

shall be satisfied with respect to any issue if the issuer elects before issuing the obligations to pay over to the United States— "(i) not less frequently than once each 5 years after the date of issue, an amount equal to 90 percent of the aggregate amount which would be required to be paid or credited to mortgagors under subparagraph (A) (and not theretofore paid to the United States), and "(ii) not later than 30 days after the redemption of the last obligation, 100 percent of such aggregate amount not theretofore paid to the United States. "(E) SIMPLIFIED ACCOUNTING.—The Secretary shall permit any simplified system of accounting for purposes of this paragraph which the issuer establishes to the satisfaction of the Secretary will assure that the purposes of this paragraph are carried out.". (b) TECHNICAL AMENDMENT.—Paragraph (8) of section 103A(1) of such Code is amended by inserting "or paid to the United States" after "credited to mortgagors".

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