To waive the arbitrage rules for certain bonds issued in 1990 and partially defeased in 1996.

Provides that bond arbitrage requirements shall not apply to an issue of bonds that were partially defeased (made void) if: (1) such bonds are redeemed by the governmental issuer within 90 days of the sale of the escrow securities, and (2) any net profit remaining after the proceeds of the sale of the escrow securities have been applied to such redemption is used by the issuer for an essential governmental function within 12 months of such redemption. Makes this waiver applicable to bonds issued on January 4, 1990, that were partially defeased on July 19, 1996, with revenues of a municipally-owned electric and water system.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1197 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 1197

   To waive the arbitrage rules for certain bonds issued in 1990 and 
                      partially defeased in 1996.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 14, 2013

   Mr. Ross introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To waive the arbitrage rules for certain bonds issued in 1990 and 
                      partially defeased in 1996.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. WAIVER OF ARBITRAGE RULES FOR CERTAIN BONDS.

    (a) In General.--Section 148 of the Internal Revenue Code of 1986 
shall not apply to an issue of bonds that were partially defeased, 
described in subsection (b), if--
            (1) such bonds are redeemed by the governmental unit that 
        issued them within 90 days of the sale of the escrow 
        securities, and
            (2) any net profit remaining after the proceeds of the sale 
        of the escrow securities have been applied to such redemption 
        is used by the issuer for an essential governmental function 
        within twelve months of such redemption.
    (b) Bonds Described.--Bonds described in this subsection are bonds 
issued on January 4, 1990, that were partially defeased on July 19, 
1996, with revenues of a municipally owned electric and water system.
                                 <all>