Page:United States Statutes at Large Volume 104 Part 2.djvu/919

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PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-511 clause (viii) or after the latest maturity date of any bond in the issue (including any refunding bond with respect thereto), "(viii) ELECTION TO TERMINATE iVa PERCENT PEN- ALTY. —At the election of the issuer (made not later than 90 days gifter the earlier of the end of the initial temporary period or the date the construction is substantially completed), the penalty under clause (vii) shall not apply to any 6-month period after the initial temporary period under subsection (c) if the requirements of subclauses (I), (II), and (III) are met. "(I) 3 PERCENT PENALTY. —The requirement of this subclause is met if the issuer pays a penalty equal to 3 percent of the amount of available construction proceeds of the issue which is not spent for the governmental purposes of the issue as of the close of such initial temporary period multiplied by the number of years (including fractions thereof in the initial temporary period. " (II) YIELD RESTRICTION AT CLOSE OF TEMPORARY PERIOD. —The requirement of this subclause is met if the amount of the available construction proceeds of the issue which is not spent for the governmental purposes of the issue as of the close of such initial temporary period is invested at a yield not exceeding the yield on the issue or which is invested in any tax-exempt bond which is not investment property. "(Ill) REDEMPTION OF BONDS AT EARUEST CALL DATE.— The requirement of this subclause is met if the amount of the available construction proceeds of the issue which is not spent for the governmental purposes of the issue as of the earliest date on which bonds may be redeemed is used to redeem bonds on such date, "(ix) ELECTION TO TERMINATE iVa PERCENT PENALTY BEFORE END OF TEMPORARY PERIOD.—I f — "(I) the construction to be financed by a construction issue is substantially completed before the end of the initial temporary period, "(II) the issuer identifies an amount of available construction proceeds which will not be spent for the governmental purposes of the issue, "(III) the issuer has made the election under clause (viii), and "(IV) the issuer makes an election under this clause before the close of the initial temporary period and not later than 90 days after the date the construction is substantially completed, then clauses (vii) and (viii) shall be applied to the available construction proceeds so identified as if the initial temporary period ended as of the date the election is made. "(x) FAILURE TO PAY PENALTIES. — In the case of a failure (which is not due to willful neglect) to pay any penalty required to be paid under clause (vii) or (viii) in the amount or at the time prescribed therefor, the