RULES APPLICABLE TO TAX AND REVENUE ANTICIPATION BONDS.

SEC. 6177. RULES APPLICABLE TO TAX AND REVENUE ANTICIPATION BONDS. (a) Change in Period Used To Determine Cumulative Cash Flow Deficit.—Subclause (III) of section 148(f)(4)(B)(iii) of the 1986 Code (relating to safe harbor for determining when proceeds of tax and revenue anticipation bonds are expended) is amended by striking 102 STAT. 3727out “the earliest of the maturity date of the issue, the date 6 months after such date of issuance,” and inserting in lieu thereof “the earlier of the date 6 months after such date of issuance.” (b) Due Date for Last Installment of Arbitrage Rebate.—Paragraph (3) of section 148(f) of the 1986 Code is amended by adding at the end thereof the following new sentence: “In the case of a tax and revenue anticipation bond, the last installment shall not be required to be made before the date 8 months after the date of issuance of the issue of which the bond is a part.” (c) Effective Date.—The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.