- 11 -
made) as the principal residence of the
participant or a member of the family
* * *.
This provision applied to all loans made after August 13,
1982. See 1982 Act, sec. 236(c)(1), 96 Stat. 324, 510.
As part of the Tax Reform Act of 1986 (the 1986 Act),
Pub. L. 99-514, sec. 1134(b), 100 Stat. 2085, 2484,
Congress amended section 72(p) by, inter alia, adding a
new subparagraph (2)(C), which imposes an additional
requirement for the exception contained in section
72(p)(2). That provision states as follows:
(C) Requirement of level amortization.--Except as
provided in regulations, this paragraph shall not
apply to any loan unless substantially level
amortization of such loan (with payments not less
frequently than quarterly) is required over the
term of the loan.
Under this level amortization requirement, a loan is not
eligible for the exception contained in section 72(p)(2)
unless it requires substantially level amortization over
the term of the loan, with payments no less frequently than
quarterly. See id. This level amortization requirement
applies only to loans that are made, renewed, renegotiated,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011