Page:United States Statutes at Large Volume 98 Part 1.djvu/961

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 913

(f) CONFORMING AMENDMENT.—The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by striking out the item relating to section 25 and inserting in lieu thereof the following: "Sec. 25. Interest on certain home mortgages. "Sec. 26. Limitation based on tax liability; definition of tax liability." (g) EFFECTIVE DATE.—

26 USC 25 note. (1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to interest paid or accrued after December 31, 1984, on indebtedness incurred after December 31, 1984. '; (2) ELECTIONS.—The amendments made by this section shall apply to elections under section 25(c)(2)(A)(ii) of the Internal > Revenue Code of 1954 (as added by this section) for calendar Ante, p. 905. years after 1983. SEC. 613. AUTHORITY TO BORROW FROM FEDERAL FINANCING BANK.

(a) GENERAL RULE.—Upon application by the appropriate State Housing Agency of Oregon, the Federal Financing Bank shall make qualified cash flow loans to such Agency. Such loans shall bear interest at a rate equal to the average rate on the applicable mortgage bonds with respect to which such loans were made. (b) QUALIFIED CASH FLOW LOANS.—For purposes of this section, the term "qualified cash flow loan" means any loan with respect to an applicable mortgage bond reasonably necessary to cover any excess determined under subsection (c)(2) on the basis of actual payments. The aggregate amount of such loans which may be outstanding at any 1 time shall not exceed $300,000,000. (c) APPLICABLE MORTGAGE BONDS.—For purposes of this section, the term "applicable mortgage bond" means any qualified veterans' mortgage bond issued as part of an issue— (1) which was outstanding on December 5, 1980, (2) with respect to which the excess of—(A) the projected aggregate payments of principal on the applicable mortgage bonds during the 15-fiscal year period beginning with fiscal year 1984, over (B) the projected aggregate payments during such period of principal on mortgages financed by the applicable mortgage bonds, exceeds 12 percent of the aggregate principal amount of such bonds outstanding on July 1, 1983, (3) with respect to which the amount of the average annual prepayments during fiscal years 1981, 1982, and 1983 was less than 2 percent of the average of the loan balances as of the beginning of each of such fiscal years, and (4) which, for fiscal year 1983, had a prepayment experience rate that did not exceed 20 percent of the prepayment experience rate of the Federal Housing Administration in the State or region in which the issuer is located. (d) DEFINITIONS.— (1) ASSUMPTIONS USED IN MAKING PROJECTION.—The computa-

tion under subsection (c)(2) shall be made by using the following percentage of the prepayment experience of the Federal Housing Administration in the State or region in which the issuer of the applicable mortgage bonds is located:

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