(7) Definition of loan; treatment of mixed use issues (A) Loan For purposes of this subsection, the term “loan” does not include— (i) any loan which is a nonpurpose investment (within the meaning of section 148(f)(6)(A), determined without regard to section 148(b)(3) ), and (ii) any use of proceeds by an agency of the issuer unless such agency is a political subdivision or instrumentality of the issuer. (B) Portion of issue to be used for loans treated as separate issue If only a portion of the proceeds of an issue is reasonably expected (at the time of issuance of the bond) to be used (or is intentionally used) as described in paragraph (6)(A), such portion and the other portion of such issue shall be treated as separate issues for purposes of determining whether such portion meets the requirements of this subsection.


26 USC § 149(f)(7)

Scoping language

For purposes of this subsection
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