operations of the Infrastructure Bank Holding Company and the Bank. (b) Secretary of the Treasury The Secretary shall establish an office, which shall report to the Assistant Secretary of the Treasury for Financial Institutions, which shall have oversight and supervisory authority over the issuance of bonds by the Infrastructure Bank Holding Company and the Bank in order to ensure the safe and sound financing of the Infrastructure Bank Holding Company and the Bank. 6. Infrastructure Guarantee Fund (a) Establishment The Bank shall establish an Infrastructure Guarantee Fund, which shall be available for State and local governments and other persons who wish to deposit funds to be used with respect to specific loans or loan guarantees made by the Bank, in the event of any non-payment by the recipient of such loan or loan guarantee. (b) Return of funds Any funds described under subsection (a) that are remaining at the time such loans or guaranteed loans are repaid shall be returned to the State or local government or other person who deposited the funds. 7. Holding Company and Bank exemption from taxation The Holding Company and the Bank, including its franchise, its capital, reserves, and surplus, its advances, and its income shall be exempt from all taxation now or hereafter imposed by the United States, by any territory, dependency, or possession thereof, or by any State, county, municipal, or local taxing authority, except that any real property of the Holding Company and the Bank shall be subject to State, territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed. 8. Extension and modification of dividends received deduction for repatriated foreign earnings used to purchase Holding Company bonds (a) In general Section 965 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (g) Temporary extension and modification (1) In general In the case of an election under this subsection, subsection (f)(1) shall