Municipal security

Municipal security means a security which is a direct obligation of, or an obligation guaranteed as to principal or interest by, a State or any political subdivision, or any agency or instrumentality of a State or any political subdivision, or any municipal corporate instrumentality of one or more States or any security which is an industrial development bond (as defined in 26 U.S.C. 103(c)(2)) the interest on which is excludable from gross income under 26 U.S.C. 103(a)(1) if, by reason of the application of paragraph (4) or (6) of 26 U.S.C. 103(c) (determined as if paragraphs (4)(A), (5) and (7) were not included in 26 U.S.C. 103(c), paragraph (1) of 26 U.S.C. 103(c) does not apply to such security. See 15. U.S.C. 78c(a)(29).
means a security which is a direct obligation of, or an obligation guaranteed as to principal or interest by, a State or any political subdivision, or any agency or instrumentality of a State or any political subdivision, or any municipal corporate instrumentality of one or more States or any security which is an industrial development bond (as defined in26 U.S.C. 103(c)(2)) the interest on which is excludable from gross income under26 U.S.C. 103(a)(1)if, by reason of the application of paragraph (4) or (6) of26 U.S.C. 103(c)(determined as if paragraphs (4)(A), (5) and (7) were not included in26 U.S.C. 103(c), paragraph (1) of26 U.S.C. 103(c)does not apply to such security.See15. U.S.C. 78c(a)(29).

Source

12 CFR § 344.3


Scoping language

None
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