TAXABILITY OF CERTAIN FEDERALLY GUARANTEED OBLIGATIONS.

SEC. 201. TAXABILITY OF CERTAIN FEDERALLY GUARANTEED OBLIGATIONS. (a) Certain Federally Guaranteed Obligations.—Section 103 of the Internal Revenue Code of 1954 (relating to interest on certain governmental obligations) is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: “(f) Certain Federally Guaranteed Obligation.—Any obligation the payment of interest or principal (or both) of which is guaranteed in whole or in part under title I of the New York City Loan Guarantee Act of 1978 shall, with respect to interest accrued during the period for which such guarantee is in effect, be treated as an obligation not described in subsection (a).”. (b) Obligations May Not Be Acquired by Federal Financing Bank.—Nothing in any provision of law shall be construed to authorize the Federal Financing Bank to acquire any obligation the payment of interest or principal of which has at any time been guaranteed in whole or in part under title I of the New York City Loan Guarantee Act of 1978. (c) Effective Date.—The amendments made by subsection (a) shall apply to taxable years ending after the date of the enactment of this Act.