Program Investment [Internal Revenue] Law and Legal Definition
Pursuant to 26 CFR 1.148-1 (b) [Title 26 Internal Revenue; Chapter I Internal Revenue Service, Department of the Treasury; Subchapter A Income Tax; Part 1 Income Taxes; Normal Taxes and Surtaxes; Computation of Taxable Income; Tax Exemption Requirements for State and Local Bonds], the term Program Investment means “a purpose investment that is part of a governmental program in which --
(1) The program involves the origination or acquisition of purpose investments;
(2) At least 95 percent (90 percent for qualified student loans under section 144(b)(1)(A) [26 USCS § 144(b)(1)(A)]) of the cost of the purpose investments acquired under the program represents one or more loans to a substantial number of persons representing the general public, States or political subdivisions, 501(c)(3) organizations, persons who provide housing and related facilities, or any combination of the foregoing;
(3) At least 95 percent of the receipts from the purpose investments are used to pay principal, interest, or redemption prices on issues that financed the program, to pay or reimburse administrative costs of those issues or of the program, to pay or reimburse anticipated future losses directly related to the program, to finance additional purpose investments for the same general purposes of the program, or to redeem and retire governmental obligations at the next earliest possible date of redemption;
(4) The program documents prohibit any obligor on a purpose investment financed by the program or any related party to that obligor from purchasing bonds of an issue that finance the program in an amount related to the amount of the purpose investment acquired from that obligor; and
(5) The issuer has not waived the right to treat the investment as a program investment.”
Legal Definition list
- Program Investment [Internal Revenue]
- Program Income
- Program Fraud Civil Remedies Act of 1986
- Program for the Training Physician Assistants
- Program for All-Inclusive Care for Elderly (PACE)
- Program Objective Memorandum [POM]
- Program or Activity [Education]
- Program Preference [Business Credit and Assistance]
- Program Rule [Energy]
- Program Trading
- Program-length Commercial
Related Legal Terms
- 8 A Program
- Ability One Program
- Abuse in Later Life Program [Department of Justice]
- Academic Competitiveness Grant (ACG) Program [Education]
- Accelerated Nursing Degree Program
- Accumulation plan [Internal Revenue]
- Actual Investment
- Actuarial Present Value [Internal Revenue]
- Administrative Program
- Advanced Placement Program
