1.148-7 (c)(3) Amounts not included in gross proceeds.

For purposes of paragraph (c)(1)(i) of this section only, gross proceeds has the meaning used in section 1.148-1, except it does not include amounts --

(i) In a bona fide debt service fund;

(ii) In a reasonably required reserve or replacement fund (see section 1.148-7(b)(5));

(iii) That, as of the issue date, are not reasonably expected to be gross proceeds but that become gross proceeds after the end of the 6-month spending period;

(iv) Representing sale or investment proceeds derived from payments under any purpose investment of the issue; and

(v) Representing repayments of grants (as defined in section 1.148-6(d)(4)) financed by the issue.