Page:United States Statutes at Large Volume 96 Part 1.djvu/517

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 475

determined by taking into account the respective cost of such facilities. "(C) SPECIAL RULES.— "(i) DETERMINATION OF ECONOMIC LIFE.—For purposes

of this paragraph, the reasonably expected economic life of any facility shall be determined a s of the later of— "(I) the date on which the obligations a r e issued, or "(II) the date on which the facility is placed in service (or expected to be placed in service), "(ii) T R E A T M E N T OF L A N D. — "(I) L A N D NOT TAKEN INTO ACCOUNT.—Except a s

provided in subclause (II), land shall not be t a k e n into account under subparagraph (A)(ii). "(II) ISSUES WHERE 25 PERCENT OR MORE O F PRO-

CEEDS USED TO FINANCE LAND.—If 25 percent or more of the proceeds of any issue is used to finance land, such land shall be t a k e n into account under subparagraph (A)(ii) and shall be t r e a t e d as having an economic life of 50 year s. " (b) EFFECTIVE DATE.—The amendment m a d e by subsection (a) 26 USC 103 note. shall apply to obligations issued after December 31, 1982. SEC. 220. MORTGAGE SUBSIDY BONDS. (a) INCREASE IN A M O U N T OF MORTGAGE INTEREST L I M I T A T I O N. —

(1) IN GENERAL.—Subparagraph (A) of section 103A(i)(2) (relating to effective r a t e of mortgage interest) is amended by striking out " 1 percentage point" and inserting in lieu thereof "1.125 percentage points". (2) CLARIFICATION O F PREPAYMENT ASSUMPTIONS.—Clause (iv)

of section 103A(i)(2)(B) (relating to p r e payment assumptions) is amended to read as follows: "(iv) P R E P A Y M E N T ASSUMPTIONS.—In determining the

effective r a t e of interest— "(I) it shall be assumed that the mortgage prep a y m e n t r a t e will be the r a t e set forth in the most recent mortgage m a t u r i t y experience table published by the Federal Housing Administration for the State (or, if available, the a r e a within the State) in which the residences a r e located, and "(II) p r e payments of principal shall be t r e a t e d as received on the last day of the month in which the issuer reasonably expects to receive such prepayments." (3) CONFORMING AMENDMENTS. —

(A) The paragraph heading of paragraph (2) of section 103A(i) is amended by striking out " i PERCENTAGE P O I N T " and inserting in lieu the r e o f " 1.125 PERCENTAGE POINTS".

(B) Subparagraph (C) of section 103A(i)(4) is amended— (i) by striking out "1 percentage point" in clause (ii) and inserting in lieu thereof "1.125 percentage points", and (ii) by striking

out

"i

PERCENTAGE P O I N T "

in

the

caption and inserting in lieu thereof " 1.125 PERCENTAGE POINTS".

26 USC 103A.

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