Page:United States Statutes at Large Volume 100 Part 3.djvu/814

 100 STAT. 2622

PUBLIC LAW 99-514—OCT. 22, 1986 ii^*CKi:. constituted the face amount of a prior outstanding issue described in paragraph (2). "(B) FACILITIES TAKEN INTO ACCOUNT.—For purposes of

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subparagraph (A)(ii), the facilities described in this subparagraph are facilities— "(i) located in the same incorporated municipality or located in the same county O^ut not in any incorporated municipality), and "(ii) the principal user of which is or will be the same person or 2 or more related persons. For purposes of clause (i), the determination of whether or not facilities are located in the same governmental unit shall be made as of the date of issue of the issue in question. "(C) CERTAIN CAPITAL EXPENDITURES NOT TAKEN INTO AC-

COUNT.—For purposes of subparagraph (A)(ii), any capital expenditure— "(i) to replace property destroyed or damaged by fire, storm, or other casualty, to the extent of the fair «%{ market value of the property replaced, ^'***' "(ii) required by a change made after the date of issue .^ of the issue in question in a Federal or State law or local ordinance of general application or required by a change made after such date in rules and regulations of 'to general application issued under such a law or ordinance, "(iii) required by circumstances which could not be ^ reasonably foreseen on such date of issue or arising out ' •' of a mistake of law or fact (but the aggregate amount of ^ expenditures not taken into account under this clause "• with respect to any issue shall not exceed $1,000,000), ^c« o or i*^ "(iv) described in clause (i) or (ii) of section 41(b)(2)(A) for which a deduction was allowed under section 174(a), R shall not be taken into account. "(D) LIMITATION ON LOSS OF TAX EXEMPTION.—In applying

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subparagraph (A)(ii) with respect to capital expenditures made after the date of any issue, no bond issued as a part of such issue shall cease to be treated as a qualified small issue bond by reason of any such expenditure for any period before the date on which such expenditure is paid or incurred. "(E) CERTAIN REFINANCING ISSUES.—In the case of any issue described in paragraph (1)(B), an election may be made under subparagraph (A) of this paragraph only if all of the prior issues being redeemed are issues to which paragraph (1) (or the corresponding provision of prior law) applied. In applying subparagraph (A)(ii) with respect to such a refinancing issue, capital expenditures shall be taken into account only for purposes of determining whether the prior issues being redeemed qualified (and would have continued to qualify) under paragraph (1) (or the corresponding provision of prior law). "(F) AGGREGATE AMOUNT OF CAPITAL EXPENDITURES WHERE THERE IS URBAN DEVELOPMENT ACTION GRANT.—In

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the case of any issue 95 percent or more of the net proceeds of which are to be used to provide facilities with respect to which an urban development action grant has been made

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