II 109th CONGRESS 2d Session S. 3657 IN THE SENATE OF THE UNITED STATES July 13, 2006 Mr. Santorum introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to allow bonds guaranteed by the Federal home loan banks to be treated as tax exempt bonds.

1.

Bonds guaranteed by Federal home loan banks

(a)

In general

Clause (i) of section 149(b)(3)(A) of the Internal Revenue Code of 1986 (relating to exceptions for certain insurance programs) is amended— (1)by striking or after Corporation,, and (2)by inserting at the end the following: or the Federal home loan banks,. (b)

Effective date

The amendment made by subsection (a) shall apply to bonds issued after the date of the enactment of this Act.