[Code of Federal Regulations] [Title 26, Volume 2] [Revised as of April 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 26CFR1.149(b)-1] [Page 740-741] TITLE 26--INTERNAL REVENUE CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED) PART 1_INCOME TAXES--Table of Contents Sec. 1.149(b)-1 Federally guaranteed bonds. (a) General rule. Under section 149(b) and this section, nothing in section 103(a) or in any other provision of law shall be construed to provide an exemption from Federal income tax for interest on any bond issued as part of an issue that is federally guaranteed. (b) Exceptions. Pursuant to section 149(b)(3)(B), section 149(b)(1) and paragraph (a) of this section do not apply to-- (1) Investments in obligations issued pursuant to Sec. 21B(d)(3) of the Federal Home Loan Bank Act, as amended by [[Page 741]] Sec. 511 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, or any successor provision; or (2) Any investments that are held in a refunding escrow (as defined in Sec. 1.148-1). (c) Effective date. This section applies to investments made after June 30, 1993. [T.D. 8476, 58 FR 33548, June 18, 1993]