Page:United States Statutes at Large Volume 100 Part 3.djvu/1080

 100 STAT. 2888

PUBLIC LAW 99-514—OCT. 22, 1986

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(2) the amount of the refunding obligation does not exceed the amount of the refunded obligation, (3) the interest rate on the refunding obligation is lower than the interest rate on the refunded issue, and (4) the proceeds of the refunding obligation are used to redeem the refunded obligation not later than 30 days after the date of the issuance of the refunding obligation. For purposes of the preceding sentence, the term "tax-exempt IDB" means any industrial development bond (as defined in section 103(b) of the Internal Revenue Code of 1954) the interest on which is exempt from tax under section 103(a) of such Code. SEC. 1867. AMENDMENTS RELATED TO SECTION 624 OF THE ACT.

(a) Paragraph (2) of section 624(c) of the Tax Reform Act of 1984 (relating to effective date for limitations on arbitrage on nonpurpose obligations) is amended by striking out "by the Essex C!ounty Port Authority of New York and New Jersey as part of an issue approved" and inserting in lieu thereof "for the Essex (Dounty New Jersey Resource Recovery Project authorized by the Port Authority of New York and New Jersey on November 10, 1983, as part of an agreement approved". (b) The amendment made by section 624 of the Tax Reform Act of 1984 shall not apply to obligations issued with respect to the Downtown Muskogee Revitalization Project for which a UDAG grant was preliminarily approved on May 5, 1981, if— (1) such obligation is issued before Jsmuary 1, 1986, or (2) such obligation is issued after such date to provide additional financing for such project except that the aggregate amount of obligations to which this subsection applies shall not exceed $10,000,000. SEC. 1868. AMENDMENT RELATED TO SECTION 625 OF THE ACT.

Subparagraph (C) of section 625(a)(3) of the Tax Reform Act of 1984 (relating to arbitrage regulations) is amended by striking out "obligation issued exclusively" and inserting in lieu thereof "obligation (or series of refunding obligations) issued exclusively". SEC. 1869. AMENDMENTS RELATED TO SECTION 626 OF THE ACT.

(a) (DHANGE IN DEFINED TERM.—Subsection (o) of section 103 (relat-

ing to denial of tax exemption for consumer loan bonds) is amended— (1) by striking out "consumer loan bond" each place it appears and inserting in lieu thereof "private loan bond", (2) by striking out "(CONSUMER LOAN BONDS" in the subsection heading and inserting in lieu thereof "PRIVATE LOAN BONDS", and (3) by striking out "CONSUMER LOAN BONDS" in the heading for paragraph (2) and inserting in lieu thereof "PRIVATE LOAN BONDS". (b) CILERICAL AMENDMENTS.—

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(1) Clause (ii) of section 103(o)(2)(C) (relating to excluded loans) is amended by striking out "subsection (c)(6)(G)(i)" and inserting in lieu thereof "subsection (c)(6)(H)(i)". (2) Section 103 is amended by redesignating the subsection vo) (relating to cross references) as subsection (p). (c) T ^ N S I T I O N A L RULES.—

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