§ 77-1106 — Long-term debt security, defined

Long-term debt security
means any debt instrument issued by a qualified community development entity,
at par value or a premium, with an original maturity date of at least seven
years after the date of its issuance, with no acceleration of repayment, amortization,
or prepayment features prior to its original maturity date. The qualified
community development entity that issues the debt instrument may not make
cash interest payments on the debt instrument during the period beginning
on the date of issuance and ending on the final credit allowance date that
exceed the cumulative operating income as defined by regulations adopted under
section 45D of the Internal Revenue Code of 1986, as amended, of the qualified
community development entity for that period prior to giving effect to the
expense of such cash interest payments. This in no way limits the holder's
ability to accelerate payments on the debt instrument if the issuer has defaulted
on covenants designed to ensure compliance with this section or section 45D
of the code.

Legislative History

Source: Laws 2012, LB1128, § 6.