Page:United States Statutes at Large Volume 100 Part 3.djvu/841

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2649

title by reason of any provision of law (other than a provision of this title) which is in effect on January 6, 1983, shall be treated as a bond described in section 103(a). "(B) ADDITIONAL REQUIREMENTS FOR BONDS ISSUED AFTER

1983.—Subparagraph (A) shall not apply to a bond (not described in subparagraph (O) issued after 1983 if the appropriate requirements of this part (or the corresponding provisions of prior law) are not met with respect to such bond. "(C) DESCRIPTION OF BOND.—A bond is described in this subparagraph (and treated as described in subparagraph (A))if"(i) such bond is issued pursuant to the Northwest Power Act (16 U.S.C. 839d), as in effect on July 18, 1984; "(ii) such bond is issued pursuant to section 608(a)(6)(A) of Public Law 97-468, as in effect on the date of the enactment of the Tax Reform Act of 1986; or "(iii) such bond is issued before June 19, 1984 under section llOt)) of the United States Housing Act of 1937. '(d) ADVANCE REFUNDINGS.—

"(1) IN GENERAL.—Nothing in section 103(a) or in any other provision of law shall be construed to provide an exemption from Federal income tax for interest on any bond issued as part of an issue described in paragraph (2), (3), or (4). "(2) CERTAIN PRIVATE ACTIVITY BONDS.—An issue is described in this paragraph if any bond (issued as part of such issue) is issued to advance refund a private activity bond (other than a qualified 501(c)(3) bond). "(3) OTHER BONDS.—



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"(A) IN GENERAL.—An issue is described in this paragraph if any bond (issued as part of such issue), hereinafter in this paragraph referred to as the 'refunding bond', is issued to advance refund a bond unless— "(i) the refunding bond is only— "(I) the 1st advance refunding of the original bond if the original bond is issued after 1985, or "(II) the 1st or 2nd advance refunding of the original bond if the original bond was issued before 1986, "(ii) in the case of refunded bonds issued before 1986, the refunded bond is redeemed not later than the earliest date on which such bond may be redeemed at par or at a premium of 3 percent or less, "(iii) in the case of refunded bonds issued after 1985, the refunded bond is redeemed not later than the earliest date on which such bond may be redeemed, "(iv) the initial temporary period under section 148(c) ends— "(I) with respect to the proceeds of the refunding bond not later than 30 days after the date of issue of such bond, and "(II) with respect to the proceeds of the refunded bond on the date of issue of the refunding bond, and "(v) in the case of refunded bonds to which section 148(e) did not apply, on and after the date of issue of the refunding bond, the amount of proceeds of the

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