Page:United States Statutes at Large Volume 98 Part 1.djvu/972

 98 STAT. 924

PUBLIC LAW 98-369—JULY 18, 1984 "(11) is not acquired in order to carry out the governmental purpose of the issue, "(ii) GROSS PROCEEDS.—The gross proceeds of an issue

Ante, pp. 536, 538.

26 USC 103A. 26 USC 103.

26 USC 103 note.

include— "(I) amounts received (including repayments of principal) as a result of investing the original proceeds of the issue, and "(II) amounts used to pay debt service on the issue, "(iii) YIELD.—The yield on the issue shall be determined on the basis of the issue price (within the meaning of section 1273 or 1274)." (b) CONFORMING AMENDMENTS.—

(1) Paragraph (1) of section 103A(i) (relating to arbitrage) is amended by striking out "section 103(c)" and inserting in lieu thereof "section 103(c) (other than section 103(c)(6))". (2) Subsection (c) of section 103 is amended by striking out "Bonds" in the heading. (3) Paragraph (1) of section 103(c) is amended by inserting "to arbitrage bonds" in the heading. (c) EFFECTIVE D A T E. —

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply with respect to bonds issued after December 31, 1984. (2) EXCEPTION.—The amendments made by this section shall not apply to obligations issued by the Essex County Port Authority of New York and New Jersey as part of an issue approved by Essex County, New Jersey, on July 7, 1981, and approved by the State of New Jersey on December 31, 1981. The aggregate face amount of bonds to which this paragraph applies shall not exceed $350,000,000. 26 USC 103 note.

SEC. 625. STUDENT LOAN BONDS. (a) ARBITRAGE REGULATIONS.—

Ante, p. 922.

Post, p. 926.

(1) IN GENERAL.—The Secretary shall prescribe regulations which specify the circumstances under which a qualified student loan bond shall be treated as an arbitrage bond for purposes of section 103 of the Internal Revenue Code of 1954. Such regulations may provide that— (A) paragraphs (4) and (5) of section 103(c) of such Code shall not apply, and (B) rules similar to section 103(c)(6) shall apply, to qualified student loan bonds. (2) DEFINITIONS.—For purposes of this subsection— (A) QUALIFIED STUDENT LOAN BOND.—The term 'qualified student loan bond' has the meaning given to such term by section 103(o)(3) of the Internal Revenue Code of 1954 (as amended by this Act). (B) ARBITRAGE BOND.—The term "arbitrage bond" has the meaning given to such term by section 103(c)(2). (3) EFFECTIVE DATE.—

(A) IN GENERAL.—Except as otherwise provided in this paragraph, any regulations prescribed by the Secretary under paragraph (1) shall apply to obligations issued after the qualified date. (B) QUALIFIED DATE.—

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