VETERANS’ MORTGAGE BONDS.

SEC. 203. VETERANS’ MORTGAGE BONDS. (a) Expansion of Definition of Veterans Eligible for State Home Loan Programs Funded by Qualified Veterans’ Mortgage Bonds.—(1) In general.—Paragraph (4) of section 143(l) (defining qualified veteran) is amended to read as follows: 120 STAT. 349 “(4) Qualified veteran.—For purposes of this subsection, the term ‘qualified veteran’ means—“(A) in the case of the States of Alaska, Oregon, and Wisconsin, any veteran—“(i) who served on active duty, and “(ii) who applied for the financing before the date 25 years after the last date on which such veteran left active service, and “(B) in the case of any other State, any veteran—“(i) who served on active duty at some time before January 1, 1977, and “(ii) who applied for the financing before the later of—“(I) the date 30 years after the last date on which such veteran left active service, or “(II) January 31, 1985.”. (2) Effective date.—The amendments made by this subsection shall apply to bonds issued on or after the date of the enactment of this Act. (b) Revision of State Veterans Limit.—(1) In general.—Subparagraph (B) of section 143(l)(3) (relating to volume limitation) is amended—(A) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and moving such clauses 2 ems to the right, (B) by amending the matter preceding subclause (I), as designated by subparagraph (A), to read as follows: “(B) State veterans limit.—“(i) In general.—In the case of any State to which clause (ii) does not apply, the State veterans limit for any calendar year is the amount equal to—”, and (C) by adding at the end the following new clauses: “(ii) Alaska, oregon, and wisconsin.—In the case of the following States, the State veterans limit for any calendar year is the amount equal to—“(I) $25,000,000 for the State of Alaska, “(II) $25,000,000 for the State of Oregon, and “(III) $25,000,000 for the State of Wisconsin. “(iii) Phasein.—In the case of calendar years beginning before 2010, clause (ii) shall be applied by substituting for each of the dollar amounts therein an amount equal to the applicable percentage of such dollar amount. For purposes of the preceding sentence, the applicable percentage shall be determined in accordance with the following table: “For Calendar Year:Applicable percentage is: 200620 percent 200740 percent 200860 percent 200980 percent. “(iv) Termination.—The State veterans limit for the States specified in clause (ii) for any calendar year after 2010 is zero.”. 120 STAT. 350(2) Effective date.—The amendments made by this subsection shall apply to allocations of State volume limit after April 5, 2006.