111 
‘‘(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 
headquarters 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 
refinanced by such indebtedness) was originally 
incurred after the date of the enactment of this 
section. 
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112 
‘‘(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 section 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 re-
imburse 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 
takes any action within its control which causes 
such proceeds not to be used for a qualified 
project. The Secretary shall prescribe regula-
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113 
tions specifying remedial actions that may be 
taken (including conditions to taking such re-
medial actions) to prevent an action described 
in the preceding 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 Sec-
retary 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 with-
out regard to the requirements of paragraph (3) and 
using as a discount rate the average annual interest 
rate of tax-exempt 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 
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