PUBLIC LAW 107-147—MAR. 9, 2002 116 STAT. 37 The limitations under clauses (i), (ii), and (iii) shall be allocated proportionately between the bonds designated by the Governor and the bonds designated by the Mayor in proportion to the respective amounts of bonds designated by each. "(C) MOVABLE PROPERTY.—No bonds shall be issued which are to be used for movable fixtures and equipment. "(4) QUALIFIED PROJECT COSTS.— For purposes of this subsection— "(A) IN GENERAL.— The term 'qualified project costs' means the cost of acquisition, construction, reconstruction, and renovation of— "(i) nonresidential real property and residential rental property (including fixed tenant improvements associated with such property) located in the New York Liberty Zone, and "(ii) public utility property (as defined in section 168(i)(10)) located in the New York Liberty Zone. " (B) COSTS FOR CERTAIN PROPERTY OUTSIDE ZONE INCLUDED. —Such term includes the cost of acquisition, construction, reconstruction, and renovation of nonresidential real property (including fixed tenant improvements associated with such property) located outside the New York Liberty Zone but within the City of New York, New York, if such property is part of a project which consists of at least 100,000 square feet of usable office or other commercial space located in a single building or multiple adjacent buildings. "(5) SPECIAL RULES. —In applying this title to any qualified New York Liberty Bond, the following modifications shall apply: "(A) Section 146 (relating to volume cap) shall not apply. "(B) Section 147(d) (relating to acquisition of existing Applicability. property not permitted) shall be applied by substituting '50 percent' for '15 percent' each place it appears. "(C) Section 148(f)(4)(C) (relating to exception from Applicability. rebate for certain proceeds to be used to finance construction expenditures) shall apply to the available construction proceeds of bonds issued under this section. "(D) Repayments of principal on financing provided by the issue— "(i) may not be used to provide financing, and "(ii) must be used not later than the close of the 1st semiannual period beginning after the date of the repayment to redeem bonds which are part of such issue. The requirement of clause (ii) shall be treated as met with respect to amounts received within 10 years after the date of issuance of the issue (or, in the case of a refunding bond, the date of issuance of the original bond) if such amounts are used by the close of such 10 years to redeem bonds which are part of such issue. "(E) Section 57(a)(5) shall not apply. " (6) SEPARATE ISSUE TREATMENT OF PORTIONS OF AN ISSUE. —T T iis subsection shall not apply to the portion of an issue which (if issued as a separate issue) would be treated as a qualified bond or as a bond that is not a private activity
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