Page:United States Statutes at Large Volume 98 Part 1.djvu/974

 98 STAT. 926

20 USC 1001 note.

PUBLIC LAW 98-369—JULY 18, 1984 (1) IN GENERAL.—The Comptroller General of the United States and the Director of the Congressional Budget Office, shall conduct studies of^ (A) the appropriate role of tax-exempt bonds which are issued in connection with the guaranteed student loan program and the PLUS program established under the Higher Education Act of 1965, and (B) the appropriate arbitrage rules for such bonds. (2) REPORT.—The Comptroller General of the United States and the Director of the Congressional Budget Office, shall submit to the Committee on Finance and the Committee on Labor and Human Resources of the Senate and the Committee on Ways and Means and the Committee on Education and Labor of the House of Representatives reports on the studies conducted under paragraph (1) by no later than 9 months after the date of enactment of this Act. PART III—OTHER RESTRICTIONS

Ante, p. 926.

SEC. 626. DENIAL OF TAX EXEMPTION TO CONSUMER LOAN BONDS. (a) IN GENERAL.—Section 103 (relating to interest on certain governmental obligations) is amended by adding at the end thereof the following new subsection: "(o) CONSUMER LOAN BONDS.— "(1) DENIAL OF TAX EXEMPTION.—For

20 USC 1001 note.

purposes of this title, any consumer loan bond shall be treated as an obligation which is not described in subsection (a). "(2) CONSUMER LOAN BONDS.—For purposes of this subsection— "(A) IN GENERAL.—The term 'consumer loan bond' means any obligation which is issued as part of an issue all or a significant portion of the proceeds of which are reasonably expected to be used directly or indirectly to make or finance loans (other than loans described in subparagraph (C)) to persons who are not exempt persons (within the meaning of subsection (b)(3)). "(B) EXCLUDED OBLIGATIONS.—The term 'consumer loan bond' shall not include any— "(i) qualified student loan bond, "(ii) industrial development bond, or "(iii) qualified mortgage bond or qualified veterans' mortgage bond. "(C) EXCLUDED LOANS.—A loan is described in this subparagraph if the loan— "(i) enables the borrower to finance any governmental tax or assessment of general application for an essential governmental function, or "(ii) is used to acquire or carry nonpurpose obligations (within the meaning of subsection (c)(6)(G)(i)). "(3) QUALIFIED STUDENT LOAN BONDS.—For purposes of this subsection, the term 'qualified student loan bond' means any obligation which is issued as part of an issue all or a major portion of the proceeds of which are reasonably expected to be used directly or indirectly to make or finance student loans under a program of general application to which the Higher Education Act of 1965 applies if—

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