12 2 STA T . 1 508PUBLIC LA W 110 – 2 34—M A Y 22 , 2008 ‘ ‘ (i ii )they ie ldonsuc h f und is not gr e a ter than the discount rate deter m ined under p aragraph ( 5 )( B ) w ith respect to the issue . ‘‘(5) MATURI T YL I M ITATI ON . — ‘‘( A ) I N GE NERAL.—An issue shall b e treated as meeting the re q uirements of this paragraph if the maturity of any bond which is part of such issue does not e x ceed the max - imum term determined by the S ecretary under subpara- graph (B). ‘‘(B) MA X IMUM TERM.— D uring each calendar month , the Secretary shall determine the maximum term per- mitted under this paragraph for bonds issued during the following calendar month. Such maximum term shall be the term which the Secretary estimates will result in the present v alue of the obligation to repay the principal on the bond being equal to 5 0 percent of the face amount of such bond. Such present value shall be determined using as a discount rate the average annual interest rate of tax-exempt obligations having a term of 1 0 years or more which are issued during the month. If the term as so determined is not a multiple of a whole year, such term shall be rounded to the next highest whole year. ‘‘( 6 ) P RO H I B ITION ON F INAN C IAL CONFLICT S OF INTEREST.— An issue shall be treated as meeting the requirements of this paragraph if the issuer certifies that— ‘‘(A) applicable State and local law requirements gov- erning conflicts of interest are satisfied with respect to such issue, and ‘‘(B) if the Secretary prescribes additional conflicts of interest rules governing the appropriate Members of C on- gress, F ederal, State, and local officials, and their spouses, such additional rules are satisfied with respect to such issue. ‘‘(e) O THER DEFINITIONS.—For purposes of this subchapter— ‘‘(1) CRE D IT ALLO W ANCE DATE.— T he term ‘credit allowance date ’ means— ‘‘(A) March 15, ‘‘(B) J une 15, ‘‘(C) September 15, and ‘‘(D) December 15. Such term includes the last day on which the bond is out- standing. ‘‘( 2 ) BOND.—The term ‘bond’ includes any obligation. ‘‘( 3 ) STATE.—The term ‘State’ includes the District of Columbia and any possession of the U nited States. ‘‘( 4 )A V AILABLE P RO J ECT PROCEEDS.—The term ‘available pro j ect proceeds’ means— ‘‘(A) the excess of— ‘‘(i) the proceeds from the sale of an issue, over ‘‘(ii) the issuance costs financed by the issue (to the extent that such costs do not exceed 2 percent of such proceeds), and ‘‘(B) the proceeds from any investment of the excess described in subparagraph (A). ‘‘(f) CREDIT TREATED AS INTEREST.—For purposes of this sub- title, the credit determined under subsection (a) shall be treated as interest which is includible in gross income. Certif i ca ti on.
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