Internal Revenue Code – Section 149

Sec. 149. Bonds must be registered to be tax exempt; other requirements

-STATUTE-

(a) Bonds must be registered to be tax exempt

(1) General rule

Nothing in section 103(a) or in any other provision of law

shall be construed to provide an exemption from Federal income

tax for interest on any registration-required bond unless such

bond is in registered form.

(2) Registration-required bond

For purposes of paragraph (1), the term "registration-required

bond" means any bond other than a bond which -

(A) is not of a type offered to the public,

(B) has a maturity (at issue) of not more than 1 year, or

(C) is described in section 163(f)(2)(B).

(3) Special rules

(A) Book entries permitted

For purposes of paragraph (1), a book entry bond shall be

treated as in registered form if the right to the principal of,

and stated interest on, such bond may be transferred only

through a book entry consistent with regulations prescribed by

the Secretary.

(B) Nominees

The Secretary shall prescribe such regulations as may be

necessary to carry out the purpose of paragraph (1) where there

is a nominee or chain of nominees.

(b) Federally guaranteed bond is not tax exempt

(1) In general

Section 103(a) shall not apply to any State or local bond if

such bond is federally guaranteed.

(2) Federally guaranteed defined

For purposes of paragraph (1), a bond is federally guaranteed

if -

(A) the payment of principal or interest with respect to such

bond is guaranteed (in whole or in part) by the United States

(or any agency or instrumentality thereof),

(B) such bond is issued as part of an issue and 5 percent or

more of the proceeds of such issue is to be -

(i) used in making loans the payment of principal or

interest with respect to which are to be guaranteed (in whole

or in part) by the United States (or any agency or

instrumentality thereof), or

(ii) invested (directly or indirectly) in federally insured

deposits or accounts, or

 

(C) the payment of principal or interest on such bond is

otherwise indirectly guaranteed (in whole or in part) by the

United States (or an agency or instrumentality thereof).

(3) Exceptions

(A) Certain insurance programs

A bond shall not be treated as federally guaranteed by reason

of -

(i) any guarantee by the Federal Housing Administration,

the Veterans' Administration, the Federal National Mortgage

Association, the Federal Home Loan Mortgage Corporation, or

the Government National Mortgage Association,

(ii) any guarantee of student loans and any guarantee by

the Student Loan Marketing Association to finance student

loans,

(iii) any guarantee by the Bonneville Power Authority

pursuant to the Northwest Power Act (16 U.S.C. 839d) as in

effect on the date of the enactment of the Tax Reform Act of

1984, or

(iv) subject to subparagraph (E), any guarantee by a

Federal home loan bank made in connection with the original

issuance of a bond during the period beginning on the date of

the enactment of this clause and ending on December 31, 2010

(or a renewal or extension of a guarantee so made).

(B) Debt service, etc.

Paragraph (1) shall not apply to -

(i) proceeds of the issue invested for an initial temporary

period until such proceeds are needed for the purpose for

which such issue was issued,

(ii) investments of a bona fide debt service fund,

(iii) investments of a reserve which meet the requirements

of section 148(d),

(iv) investments in bonds issued by the United States

Treasury, or

(v) other investments permitted under regulations.

(C) Exception for housing programs

(i) In general

Except as provided in clause (ii), paragraph (1) shall not

apply to -

(I) a private activity bond for a qualified residential

rental project or a housing program obligation under

section 11(b) of the United States Housing Act of 1937,

(II) a qualified mortgage bond, or

(III) a qualified veterans' mortgage bond.

(ii) Exception not to apply where bond invested in federally

insured deposits or accounts

Clause (i) shall not apply to any bond which is federally

guaranteed within the meaning of paragraph (2)(B)(ii).

(D) Loans to, or guarantees by, financial institutions

Except as provided in paragraph (2)(B)(ii), a bond which is

issued as part of an issue shall not be treated as federally

guaranteed merely by reason of the fact that the proceeds of

such issue are used in making loans to a financial institution

or there is a guarantee by a financial institution unless such

guarantee constitutes a federally insured deposit or account.

(E) Safety and soundness requirements for Federal home loan

banks

Clause (iv) of subparagraph (A) shall not apply to any

guarantee by a Federal home loan bank unless such bank meets

safety and soundness collateral requirements for such

guarantees which are at least as stringent as such requirements

which apply under regulations applicable to such guarantees by

Federal home loan banks as in effect on April 9, 2008.

(4) Definitions

For purposes of this subsection -

(A) Treatment of certain entities with authority to borrow from

United States

To the extent provided in regulations prescribed by the

Secretary, any entity with statutory authority to borrow from

the United States shall be treated as an instrumentality of the

United States. Except in the case of an exempt facility bond, a

qualified small issue bond, and a qualified student loan bond,

nothing in the preceding sentence shall be construed as

treating the District of Columbia or any possession of the

United States as an instrumentality of the United States.

(B) Federally insured deposit or account

The term "federally insured deposit or account" means any

deposit or account in a financial institution to the extent

such deposit or account is insured under Federal law by the

Federal Deposit Insurance Corporation, the Federal Savings and

Loan Insurance Corporation, the National Credit Union

Administration, or any similar federally chartered corporation.

(c) Tax exemption must be derived from this title

(1) General rule

Except as provided in paragraph (2), no interest on any bond

shall be exempt from taxation under this title unless such

interest is exempt from tax under this title without regard to

any provision of law which is not contained in this title and

which is not contained in a revenue Act.

(2) Certain prior exemptions

(A) Prior exemptions continued

For purposes of this title, notwithstanding any provision of

this part, any bond the interest on which is exempt from

taxation under this title by reason of any provision of law

(other than a provision of this title) which is in effect on

January 6, 1983, shall be treated as a bond described in

section 103(a).

(B) Additional requirements for bonds issued after 1983

Subparagraph (A) shall not apply to a bond (not described in

subparagraph (C)) issued after 1983 if the appropriate

requirements of this part (or the corresponding provisions of

prior law) are not met with respect to such bond.

(C) Description of bond

A bond is described in this subparagraph (and treated as

described in subparagraph (A)) if -

(i) such bond is issued pursuant to the Northwest Power Act

(16 U.S.C. 839d), as in effect on July 18, 1984;

(ii) such bond is issued pursuant to section 608(a)(6)(A)

of Public Law 97-468, as in effect on the date of the

enactment of the Tax Reform Act of 1986; or

(iii) such bond is issued before June 19, 1984 under

section 11(b) of the United States Housing Act of 1937.

(d) Advance refundings

(1) In general

Nothing in section 103(a) or in any other provision of law

shall be construed to provide an exemption from Federal income

tax for interest on any bond issued as part of an issue described

in paragraph (2), (3), or (4).

(2) Certain private activity bonds

An issue is described in this paragraph if any bond (issued as

part of such issue) is issued to advance refund a private

activity bond (other than a qualified 501(c)(3) bond).

(3) Other bonds

(A) In general

An issue is described in this paragraph if any bond (issued

as part of such issue), hereinafter in this paragraph referred

to as the "refunding bond", is issued to advance refund a bond

unless -

(i) the refunding bond is only -

(I) the 1st advance refunding of the original bond if the

original bond is issued after 1985, or

(II) the 1st or 2nd advance refunding of the original

bond if the original bond was issued before 1986,

 

(ii) in the case of refunded bonds issued before 1986, the

refunded bond is redeemed not later than the earliest date on

which such bond may be redeemed at par or at a premium of 3

percent or less,

(iii) in the case of refunded bonds issued after 1985, the

refunded bond is redeemed not later than the earliest date on

which such bond may be redeemed,

(iv) the initial temporary period under section 148(c) ends

-

(I) with respect to the proceeds of the refunding bond

not later than 30 days after the date of issue of such

bond, and

(II) with respect to the proceeds of the refunded bond on

the date of issue of the refunding bond, and

 

(v) in the case of refunded bonds to which section 148(e)

did not apply, on and after the date of issue of the

refunding bond, the amount of proceeds of the refunded bond

invested in higher yielding investments (as defined in

section 148(b)) which are nonpurpose investments (as defined

in section 148(f)(6)(A)) does not exceed -

(I) the amount so invested as part of a reasonably

required reserve or replacement fund or during an allowable

temporary period, and

(II) the amount which is equal to the lesser of 5 percent

of the proceeds of the issue of which the refunded bond is

a part or $100,000 (to the extent such amount is allocable

to the refunded bond).

(B) Special rules for redemptions

(i) Issuer must redeem only if debt service savings

Clause (ii) and (iii) of subparagraph (A) shall apply only

if the issuer may realize present value debt service savings

(determined without regard to administrative expenses) in

connection with the issue of which the refunding bond is a

part.

(ii) Redemptions not required before 90th day

For purposes of clauses (ii) and (iii) of subparagraph (A),

the earliest date referred to in such clauses shall not be

earlier than the 90th day after the date of issuance of the

refunding bond.

(4) Abusive transactions prohibited

An issue is described in this paragraph if any bond (issued as

part of such issue) is issued to advance refund another bond and

a device is employed in connection with the issuance of such

issue to obtain a material financial advantage (based on

arbitrage) apart from savings attributable to lower interest

rates.

(5) Advance refunding

For purposes of this part, a bond shall be treated as issued to

advance refund another bond if it is issued more than 90 days

before the redemption of the refunded bond.

(6) Special rules for purposes of paragraph (3)

For purposes of paragraph (3), bonds issued before the date of

the enactment of this subsection shall be taken into account

under subparagraph (A)(i) thereof except -

(A) a refunding which occurred before 1986 shall be treated

as an advance refunding only if the refunding bond was issued

more than 180 days before the redemption of the refunded bond,

and

(B) a bond issued before 1986, shall be treated as advance

refunded no more than once before March 15, 1986.

(7) Regulations

The Secretary shall prescribe such regulations as may be

necessary or appropriate to carry out the purposes of this

subsection.

(e) Information reporting

(1) In general

Nothing in section 103(a) or any other provision of law shall

be construed to provide an exemption from Federal income tax for

interest on any bond unless such bond satisfies the requirements

of paragraph (2).

(2) Information reporting requirements

A bond satisfies the requirements of this paragraph if the

issuer submits to the Secretary, not later than the 15th day of

the 2d calendar month after the close of the calendar quarter in

which the bond is issued (or such later time as the Secretary may

prescribe with respect to any portion of the statement), a

statement concerning the issue of which the bond is a part which

contains -

(A) the name and address of the issuer,

(B) the date of issue, the amount of net proceeds of the

issue, the stated interest rate, term, and face amount of each

bond which is part of the issue, the amount of issuance costs

of the issue, and the amount of reserves of the issue,

(C) where required, the name of the applicable elected

representative who approved the issue, or a description of the

voter referendum by which the issue was approved,

(D) the name, address, and employer identification number of -

(i) each initial principal user of any facility provided

with the proceeds of the issue,

(ii) the common parent of any affiliated group of

corporations (within the meaning of section 1504(a)) of which

such initial principal user is a member, and

(iii) if the issue is treated as a separate issue under

section 144(a)(6)(A), any person treated as a principal user

under section 144(a)(6)(B),

 

(E) a description of any property to be financed from the

proceeds of the issue,

(F) a certification by a State official designated by State

law (or, where there is no such official, the Governor) that

the bond meets the requirements of section 146 (relating to cap

on private activity bonds), if applicable, and

(G) such other information as the Secretary may require.

 

Subparagraphs (C) and (D) shall not apply to any bond which is

not a private activity bond. The Secretary may provide that

certain information specified in the 1st sentence need not be

included in the statement with respect to an issue where the

inclusion of such information is not necessary to carry out the

purposes of this subsection.

(3) Extension of time

The Secretary may grant an extension of time for the filing of

any statement required under paragraph (2) if the failure to file

in a timely fashion is not due to willful neglect.

(f) Treatment of certain pooled financing bonds

(1) In general

Section 103(a) shall not apply to any pooled financing bond

unless, with respect to the issue of which such bond is a part,

the requirements of paragraphs (2), (3), (4), and (5) are met.

(2) Reasonable expectation requirement

(A) In general

The requirements of this paragraph are met with respect to an

issue if the issuer reasonably expects that -

(i) as of the close of the 1-year period beginning on the

date of issuance of the issue, at least 30 percent of the net

proceeds of the issue (as of the close of such period) will

have been used directly or indirectly to make or finance

loans to ultimate borrowers, and

(ii) as of the close of the 3-year period beginning on such

date of issuance, at least 95 percent of the net proceeds of

the issue (as of the close of such period) will have been so

used.

(B) Certain factors may not be taken into account in

determining expectations

Expectations as to changes in interest rates or in the

provisions of this title (or in the regulations or rulings

thereunder) may not be taken into account in determining

whether expectations are reasonable for purposes of this

paragraph.

(C) Net proceeds

For purposes of subparagraph (A), the term "net proceeds" has

the meaning given such term by section 150 but shall not

include proceeds used to finance issuance costs and shall not

include proceeds necessary to pay interest (during such period)

on the bonds which are part of the issue.

(D) Refunding bonds

For purposes of subparagraph (A), in the case of a refunding

bond, the date of issuance taken into account is the date of

issuance of the original bond.

(3) Cost of issuance payment requirements

The requirements of this paragraph are met with respect to an

issue if -

(A) the payment of legal and underwriting costs associated

with the issuance of the issue is not contingent, and

(B) at least 95 percent of the reasonably expected legal and

underwriting costs associated with the issuance of the issue

are paid not later than the 180th day after the date of the

issuance of the issue.

(4) Written loan commitment requirement

(A) In general

The requirement of this paragraph is met with respect to an

issue if the issuer receives prior to issuance written loan

commitments identifying the ultimate potential borrowers of at

least 30 percent of the net proceeds of such issue.

(B) Exception

Subparagraph (A) shall not apply with respect to any issuer

which -

(i) is a State (or an integral part of a State) issuing

pooled financing bonds to make or finance loans to

subordinate governmental units of such State, or

(ii) is a State-created entity providing financing for

water-infrastructure projects through the federally-sponsored

State revolving fund program.

(5) Redemption requirement

The requirement of this paragraph is met if to the extent that

less than the percentage of the proceeds of an issue required to

be used under clause (i) or (ii) of paragraph (2)(A) is used by

the close of the period identified in such clause, the issuer

uses an amount of proceeds equal to the excess of -

(A) the amount required to be used under such clause, over

(B) the amount actually used by the close of such period,

 

to redeem outstanding bonds within 90 days after the end of such

period.

(6) Pooled financing bond

For purposes of this subsection -

(A) In general

The term "pooled financing bond" means any bond issued as

part of an issue more than $5,000,000 of the proceeds of which

are reasonably expected (at the time of the issuance of the

bonds) to be used (or are intentionally used) directly or

indirectly to make or finance loans to 2 or more ultimate

borrowers.

(B) Exceptions

Such term shall not include any bond if -

(i) section 146 applies to the issue of which such bond is

a part (other than by reason of section 141(b)(5)) or would

apply but for section 146(i), or

(ii) section 143(l)(3) applies to such issue.

(7) Definition of loan; treatment of mixed use issues

(A) Loan

For purposes of this subsection, the term "loan" does not

include -

(i) any loan which is a nonpurpose investment (within the

meaning of section 148(f)(6)(A), determined without regard to

section 148(b)(3)), and

(ii) any use of proceeds by an agency of the issuer unless

such agency is a political subdivision or instrumentality of

the issuer.

(B) Portion of issue to be used for loans treated as separate

issue

If only a portion of the proceeds of an issue is reasonably

expected (at the time of issuance of the bond) to be used (or

is intentionally used) as described in paragraph (6)(A), such

portion and the other portion of such issue shall be treated as

separate issues for purposes of determining whether such

portion meets the requirements of this subsection.

(g) Treatment of hedge bonds

(1) In general

Section 103(a) shall not apply to any hedge bond unless, with

respect to the issue of which such bond is a part -

(A) the requirement of paragraph (2) is met, and

(B) the requirement of subsection (f)(3) is met.

(2) Reasonable expectations as to when proceeds will be spent

An issue meets the requirement of this paragraph if the issuer

reasonably expects that -

(A) 10 percent of the spendable proceeds of the issue will be

spent for the governmental purposes of the issue within the 1-

year period beginning on the date the bonds are issued,

(B) 30 percent of the spendable proceeds of the issue will be

spent for such purposes within the 2-year period beginning on

such date,

(C) 60 percent of the spendable proceeds of the issue will be

spent for such purposes within the 3-year period beginning on

such date, and

(D) 85 percent of the spendable proceeds of the issue will be

spent for such purposes within the 5-year period beginning on

such date.

(3) Hedge bond

(A) In general

For purposes of this subsection, the term "hedge bond" means

any bond issued as part of an issue unless -

(i) the issuer reasonably expects that 85 percent of the

spendable proceeds of the issue will be used to carry out the

governmental purposes of the issue within the 3-year period

beginning on the date the bonds are issued, and

(ii) not more than 50 percent of the proceeds of the issue

are invested in nonpurpose investments (as defined in section

148(f)(6)(A)) having a substantially guaranteed yield for 4

years or more.

(B) Exception for investment in tax-exempt bonds not subject to

minimum tax

(i) In general

Such term shall not include any bond issued as part of an

issue 95 percent of the net proceeds of which are invested in

bonds -

(I) the interest on which is not includible in gross

income under section 103, and

(II) which are not specified private activity bonds (as

defined in section 57(a)(5)(C)).

(ii) Amounts in bona fide debt service fund

Amounts in a bona fide debt service fund shall be treated

as invested in bonds described in clause (i).

(iii) Amounts held pending reinvestment or redemption

Amounts held for not more than 30 days pending reinvestment

or bond redemption shall be treated as invested in bonds

described in clause (i).

(C) Exception for refunding bonds

(i) In general

A refunding bond shall be treated as meeting the

requirements of this subsection only if the original bond met

such requirements.

(ii) General rule for refunding of pre-effective date bonds

A refunding bond shall be treated as meeting the

requirements of this subsection if -

(I) this subsection does not apply to the original bond,

(II) the average maturity date of the issue of which the

refunding bond is a part is not later than the average

maturity date of the bonds to be refunded by such issue,

and

(III) the amount of the refunding bond does not exceed

the outstanding amount of the refunded bond.

(iii) Refunding of pre-effective date bonds entitled to 5-

year temporary period

A refunding bond shall be treated as meeting the

requirements of this subsection if -

(I) this subsection does not apply to the original bond,

(II) the issuer reasonably expected that 85 percent of

the spendable proceeds of the issue of which the original

bond is a part would be used to carry out the governmental

purposes of the issue within the 5-year period beginning on

the date the original bonds were issued but did not

reasonably expect that 85 percent of such proceeds would be

so spent within the 3-year period beginning on such date,

and

(III) at least 85 percent of the spendable proceeds of

the original issue (and all other prior original issues

issued to finance the governmental purposes of such issue)

were spent before the date the refunding bonds are issued.

(4) Special rules

For purposes of this subsection -

(A) Construction period in excess of 5 years

The Secretary may, at the request of any issuer, provide that

the requirement of paragraph (2) shall be treated as met with

respect to the portion of the spendable proceeds of an issue

which is to be used for any construction project having a

construction period in excess of 5 years if it is reasonably

expected that such proceeds will be spent over a reasonable

construction schedule specified in such request.

(B) Rules for determining expectations

The rules of subsection (f)(2)(B) shall apply.

(5) Regulations

The Secretary may prescribe regulations to prevent the

avoidance of the rules of this subsection, including through the

aggregation of projects within a single issue.

 

-SOURCE-

(Added Pub. L. 99-514, title XIII, Sec. 1301(b), Oct. 22, 1986, 100

Stat. 2646; amended Pub. L. 100-647, title I, Sec. 1013(a)(20)-

(22), title V, Sec. 5051(a), Nov. 10, 1988, 102 Stat. 3542, 3676;

Pub. L. 101-239, title VII, Sec. 7651(a), Dec. 19, 1989, 103 Stat.

2383; Pub. L. 104-188, title I, Sec. 1704(b)(1), Aug. 20, 1996, 110

Stat. 1878; Pub. L. 109-222, title V, Sec. 508(a), (b), (d)(1),

(2), May 17, 2006, 120 Stat. 361, 362; Pub. L. 110-289, div. C,

title I, Sec. 3023(a), (b), July 30, 2008, 122 Stat. 2894, 2895;

Pub. L. 111-147, title V, Sec. 502(a)(2)(A), Mar. 18, 2010, 124

Stat. 107.)

 

 

-STATAMEND-

AMENDMENT OF SUBSECTION (A)(2)

Pub. L. 111-147, title V, Sec. 502(a)(2)(A), (f), Mar. 18, 2010,

124 Stat. 107, 108, provided that, applicable to obligations issued

after the date which is 2 years after Mar. 18, 2010, subsection

(a)(2) of this section is amended by inserting "or" at the end of

subparagraph (A), by substituting a period for ", or" at the end of

subparagraph (B), and by striking subparagraph (C).

 

-REFTEXT-

REFERENCES IN TEXT

The Northwest Power Act, referred to in subsecs. (b)(3)(A)(iii)

and (c)(2)(C)(i), probably means the Pacific Northwest Electric

Power Planning and Conservation Act, Pub. L. 96-501, Dec. 5, 1980,

94 Stat 2697, which is classified principally to chapter 12H (Sec.

839 et seq.) of Title 16, Conservation. For complete classification

of this Act to the Code, see Short Title note set out under section

839 of Title 16 and Tables.

The date of the enactment of the Tax Reform Act of 1984, referred

to in subsec. (b)(3)(A)(iii), is the date of enactment of Pub. L.

98-369, div. A, which was approved July 18, 1984.

The date of the enactment of this clause, referred to in subsec.

(b)(3)(A)(iv), is the date of enactment of Pub. L. 110-289, which

was approved July 30, 2008.

Section 11(b) of the United States Housing Act of 1937, referred

to in subsecs. (b)(3)(C)(i)(I) and (c)(2)(C)(iii), is classified to

section 1473i(b) of Title 42, The Public Health and Welfare.

Section 608(a)(6)(A) of Pub. L. 97-468, referred to in subsec.

(c)(2)(C)(ii), is classified to section 1207(a)(6)(A) of Title 45,

Railroads.

The date of the enactment of the Tax Reform Act of 1986, referred

to in subsec. (c)(2)(C)(ii), is the date of enactment of Pub. L. 99-

514, which was approved Oct. 22, 1986.

The date of the enactment of this subsection, referred to in

subsec. (d)(6), is the date of enactment of Pub. L. 99-514, which

was approved Oct. 22, 1986.

 

 

-MISC1-

AMENDMENTS

2008 - Subsec. (b)(3)(A)(iv). Pub. L. 110-289, Sec. 3023(a),

added cl. (iv).

Subsec. (b)(3)(E). Pub. L. 110-289, Sec. 3023(b), added subpar.

(E).

2006 - Subsec. (f)(1). Pub. L. 109-222, Sec. 508(d)(1),

substituted "paragraphs (2), (3), (4), and (5)" for "paragraphs (2)

and (3)".

Subsec. (f)(2)(A). Pub. L. 109-222, Sec. 508(a), amended subpar.

(A) generally. Prior to amendment, text read as follows: "The

requirements of this paragraph are met with respect to an issue if

the issuer reasonably expects that as of the close of the 3-year

period beginning on the date of issuance of the issue, at least 95

percent of the net proceeds of the issue (as of the close of such

period) will have been used directly or indirectly to make or

finance loans to ultimate borrowers."

Subsec. (f)(4) to (6). Pub. L. 109-222, Sec. 508(b), added pars.

(4) and (5) and redesignated former par. (4) as (6). Former par.

(5) redesignated (7).

Subsec. (f)(7). Pub. L. 109-222, Sec. 508(b), redesignated par.

(5) as (7).

Subsec. (f)(7)(B). Pub. L. 109-222, Sec. 508(d)(2), substituted

"paragraph (6)(A)" for "paragraph (4)(A)".

1996 - Subsec. (g)(3)(B)(iii). Pub. L. 104-188 amended cl. (iii)

generally. Prior to amendment, cl. (iii) read as follows:

"Investment earnings held pending reinvestment. - Investment

earnings held for not more than 30 days pending reinvestment shall

be treated as invested in bonds described in clause (i)."

1989 - Subsec. (g). Pub. L. 101-239 added subsec. (g).

1988 - Subsec. (b)(3)(A)(iii). Pub. L. 100-647, Sec. 1013(a)(20),

struck out "with respect to any bond issued before July 1, 1989"

after "1984".

Subsec. (b)(4)(A). Pub. L. 100-647, Sec. 1013(a)(21), substituted

"and a qualified student loan bond" for "a qualified student loan

bond, and a qualified redevelopment bond".

Subsec. (e)(3). Pub. L. 100-647, Sec. 1013(a)(22), substituted

"the failure to file in a timely fashion is not due to willful

neglect" for "there is reasonable cause for the failure to file

such statement in a timely fashion".

Subsec. (f). Pub. L. 100-647, Sec. 5051(a), added subsec. (f).

 

-CHANGE-

CHANGE OF NAME

Reference to Veterans' Administration deemed to refer to

Department of Veterans Affairs pursuant to section 10 of Pub. L.

100-527, set out as a Department of Veterans Affairs Act note under

section 301 of Title 38, Veterans' Benefits.

 

 

-MISC2-

EFFECTIVE DATE OF 2010 AMENDMENT

Pub. L. 111-147, title V, Sec. 502(f), Mar. 18, 2010, 124 Stat.

108, provided that: "The amendments made by this section [amending

this section, sections 163, 165, 871, 881, 1287, and 4701 of this

title, and section 3121 of Title 31, Money and Finance] shall apply

to obligations issued after the date which is 2 years after the

date of the enactment of this Act [Mar. 18, 2010]."

 

EFFECTIVE DATE OF 2008 AMENDMENT

Pub. L. 110-289, div. C, title I, Sec. 3023(c), July 30, 2008,

122 Stat. 2895, provided that: "The amendments made by this section

[amending this section] shall apply to guarantees made after the

date of the enactment of this Act [July 30, 2008]."

 

EFFECTIVE DATE OF 2006 AMENDMENT

Amendment by Pub. L. 109-222 applicable to bonds issued after May

17, 2006, see section 508(e) of Pub. L. 109-222, set out as a note

under section 54 of this title.

 

EFFECTIVE DATE OF 1996 AMENDMENT

Section 1704(b)(2) of Pub. L. 104-188 provided that: "The

amendment made by paragraph (1) [amending this section] shall take

effect as if included in the amendments made by section 7651 of the

Omnibus Budget Reconciliation Act of 1989 [Pub. L. 101-239]."

 

EFFECTIVE DATE OF 1989 AMENDMENT

Section 7651(b) of Pub. L. 101-239 provided that:

"(1) In general. - Except as otherwise provided in this

subsection, the amendment made by subsection (a) [amending this

section] shall apply to bonds issued after September 14, 1989.

"(2) Bonds sold before september 15, 1989. - The amendment made

by subsection (a) shall not apply to any bond sold before September

15, 1989, and issued before October 15, 1989.

"(3) Bonds with respect to which preliminary offering materials

mailed. - The amendment made by subsection (a) shall not apply to

any issue issued after the date of the enactment of this Act [Dec.

19, 1989] if the preliminary offering materials with respect to

such issue were mailed (or otherwise delivered) to members of the

underwriting syndicate before September 15, 1989.

"(4) Certain other bonds. - In the case of a bond issued before

January 1, 1991, with respect to which official action was taken

(or a series of official actions were taken), or other comparable

preliminary approval was given, before November 18, 1989,

demonstrating an intent to issue such bonds in a maximum specified

amount for such issue or with a maximum specified amount of net

proceeds of such issue, the issuer may elect to apply section

149(g)(2) of the Internal Revenue Code of 1986 (as added by this

section) by substituting '15 percent' for '10 percent' in

subparagraph (A) and '50 percent' for '60 percent' in subparagraph

(C).

"(5) Bonds issued to finance self-insurance funds. - The

amendment made by subsection (a) shall not apply to any bonds

issued before July 1, 1990, to finance a self-insurance fund if

official action was taken (or a series of official actions were

taken), or other comparable preliminary approval was given, before

September 15, 1989, demonstrating an intent to issue such bonds in

a maximum specified amount for such issue or with a maximum

specified amount of net proceeds of such issue."

 

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by section 1013(a)(20)-(22) of Pub. L. 100-647

effective, except as otherwise provided, as if included in the

provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which

such amendment relates, see section 1019(a) of Pub. L. 100-647, set

out as a note under section 1 of this title.

Section 5051(b) of Pub. L. 100-647 provided that:

"(1) In general. - The amendment made by subsection (a) [amending

this section] shall apply to bonds issued after October 21, 1988.

"(2) Special rule for refunding bonds. - In the case of a bond

issued to refund a bond issued before October 22, 1988 -

"(A) if the 3-year period described in section 149(f)(2)(A) of

the 1986 Code would (but for this paragraph) expire on or before

October 22, 1989, such period shall expire on October 21, 1990,

and

"(B) if such period expires after October 22, 1989, the portion

of the proceeds of the issue of which the refunded bond is a part

which is available (on the date of issuance of the refunding

issue) to provide loans shall be treated as proceeds of a

separate issue (issued after October 21, 1988) for purposes of

applying section 149(f) of the 1986 Code."

 

EFFECTIVE DATE

Subsec. (e) applicable to bonds issued after Dec. 31, 1986, see

section 1311(d) of Pub. L. 99-514, as amended, set out as an

Effective Date; Transitional Rules note under section 141 of this

title.

 

 

-TRANS-

TRANSFER OF FUNCTIONS

Federal Savings and Loan Insurance Corporation abolished and its

functions transferred, see sections 401 to 406 of Pub. L. 101-73

set out as a note under section 1437 of Title 12, Banks and

Banking.

 

-End-