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‘‘(ix) any project described in any pre-
ceding clause carried out by the Delta Re-
gional Authority.
‘‘(C) SPECIAL RULES.—For purposes of this
paragraph—
‘‘(i) any project described in subpara-
graph (B)(iv) for a farmer-owned entity
may be considered a qualified project if
such entity is located in a rural area, or in
the case of a farmer-owned entity the head-
quarters of which are located in a nonrural
area, if the project is located in a rural
area, and
‘‘(ii) any project for a farmer-owned
entity which is a facility described in sub-
paragraph (B)(iv) for agricultural pro-
ducers may be considered a qualified project
regardless of whether the facility is located
in a rural or nonrural area.
‘‘(3) SPECIAL USE RULES.—
‘‘(A) REFINANCING
RULES.—For purposes
of paragraph (1)(B), a qualified project may be
refinanced with proceeds of a rural renaissance
bond only if the indebtedness being refinanced
(including any obligation directly or indirectly
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refinanced by such indebtedness) was originally
incurred after the date of the enactment of this
section.
‘‘(B) REIMBURSEMENT.—For purposes of
paragraph (1)(B), a rural renaissance bond may
be issued to reimburse a borrower for amounts
paid after the date of the enactment of this sec-
tion with respect to a qualified project, but only
if—
‘‘(i) prior to the payment of the origi-
nal expenditure, the borrower declared its
intent to reimburse such expenditure with
the proceeds of a rural renaissance bond,
‘‘(ii) not later than 60 days after pay-
ment of the original expenditure, the quali-
fied issuer adopts an official intent to reim-
burse the original expenditure with such
proceeds, and
‘‘(iii) the reimbursement is made not
later than 18 months after the date the
original expenditure is paid.
‘‘(C) TREATMENT OF CHANGES IN USE.—
For purposes of paragraph (1)(B), the proceeds
of an issue shall not be treated as used for a
qualified project to the extent that a borrower
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takes any action within its control which causes
such proceeds not to be used for a qualified
project. The Secretary shall prescribe regulations
specifying remedial actions that may be taken
(including conditions to taking such remedial ac-
tions) to prevent an action described in the pre-
ceding sentence from causing a bond to fail to be
a rural renaissance bond.
‘‘(e) MATURITY LIMITATIONS.—
‘‘(1) DURATION OF TERM.—A bond shall not be
treated as a rural renaissance bond if the maturity
of such bond exceeds the maximum term determined
by the Secretary under paragraph (2) with respect to
such bond.
‘‘(2) MAXIMUM
TERM.—During each calendar
month, the Secretary shall determine the maximum
term permitted 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 value of the obligation to
repay the principal on the bond being equal to 50
percent of the face amount of such bond. Such present
value shall be determined without regard to the re-
quirements of subsection (f)(3) and using as a dis-
count rate the average annual interest rate of tax-ex-
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empt obligations having a term of 10 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.
‘‘(3) RATABLE
PRINCIPAL
AMORTIZATION
RE-
QUIRED.—A bond shall not be treated as a rural ren-
aissance bond unless it is part of an issue which pro-
vides for an equal amount of principal to be paid by
the qualified issuer during each calendar year that
the issue is outstanding.
‘‘(f) LIMITATION
ON
AMOUNT
OF
BONDS
DES-
IGNATED.—
‘‘(1) NATIONAL LIMITATION.—There is a rural
renaissance bond limitation of $200,000,000.
‘‘(2) ALLOCATION
BY
SECRETARY.—The Sec-
retary shall allocate the amount described in para-
graph (1) among qualified projects in such manner as
the Secretary determines appropriate.
‘‘(g) CREDIT INCLUDED IN GROSS INCOME.—Gross in-
come includes the amount of the credit allowed to the tax-
payer under this section (determined without regard to sub-
section (c)) and the amount so included shall be treated as
interest income.
‘‘(h) SPECIAL RULES RELATING TO EXPENDITURES.—
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‘‘(1) IN GENERAL.—An issue shall be treated as
meeting the requirements of this subsection if, as of
the date of issuance, the qualified issuer reasonably
expects—
‘‘(A) at least 95 percent of the proceeds from
the sale of the issue are to be spent for 1 or more
qualified projects within the 5-year period begin-
ning on the date of issuance of the rural renais-
sance bond,
‘‘(B) a binding commitment with a third
party to spend at least 10 percent of the proceeds
from the sale of the issue will be incurred within
the 6-month period beginning on the date of
issuance of the rural renaissance bond or, in the
case of a rural renaissance bond, the proceeds of
which are to be loaned to 2 or more borrowers,
such binding commitment will be incurred with-
in the 6-month period beginning on the date of
the loan of such proceeds to a borrower, and
‘‘(C) such projects will be completed with
due diligence and the proceeds from the sale of
the issue will be spent with due diligence.
‘‘(2) EXTENSION OF PERIOD.—Upon submission
of a request prior to the expiration of the period de-
scribed in paragraph (1)(A), the Secretary may ex-