Page:United States Statutes at Large Volume 100 Part 3.djvu/853

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2661

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(B) subsection (b)(1) shall be applied without regard to subparagraphs (F), (G), and (J), and ' (C) such bond shall not be treated as a private activity bond for purposes of applying the requirements referred to ^* '* in subparagraphs (H) and (I) of subsection (b)(1). (2) BOND DESCRIBED.—A bond is described in this paragraph if such bond is not— (A) an industrial development bond, as defined in section 103(b)(2) of the 1954 Code but determined— (i) by inserting "directly or indirectly" after "is" in the material preceding clause (i) of subparagraph (B) thereof, and (ii) without regard to subparagraph (B) of section -•• 103(b)(3) of such Code, (B) a mortgage subsidy bond (as defined in section ' 103A(b)(l) of such Code, without regard to any exception from such definition), or '• ' (C) a private loan bond (as defined in section 103(o)(2)(A) of such Code, without regard to any exception from such definition other than section 103(o)(2)(C) of such Code). (d) ELECTION OUT.—This section shall not apply to any issue with respect to which the issuer elects not to have this section apply. SEC. 1313. TRANSITIONAL RULES RELATING TO REFUNDINGS. (a) CERTAIN CURRENT REFUNDINGS.—

(1) IN GENERAL.—Except as provided in paragraph (3), the amendments made by section 1301 shall not apply to any bond the proceeds of which are used exclusively to refund (other than to advance refund) a qualified bond (or a bond which is part of a series of refundings of a qualified bond) if— (A) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and (B)(i) the average maturity of the issue of which the • • refunding bond is a part does not exceed 120 percent of the average reasonably expected economic life of the facilities being financed with the proceeds of such issue (determined under section 147(b) of the 1986 Code), or 'Hid' (ii) the refunding bond has a maturity date not later than the date which is 17 years after the date on which the qualified bond was issued. In the case of a qualified bond which was (when issued) a qualified mortgage bond or a qualified veterans' mortgage bond, subparagraph (B)(i) shall not apply and subparagraph (B)(ii) shall be applied by substituting "32 years" for "17 years". (2) QUALIFIED BOND.—For purposes of paragraph (1), the term "qualified bond" means any bond (other than a refunding bond)— (A) issued before August 16, 1986, or (B) issued after August 15, 1986, if section 1312(a) applies -1-5 to such bond. (3) CERTAIN AMENDMENTS TO APPLY.—The following provisions of the 1986 Code shall be treated as included in section 103 and section 103A (as appropriate) of the 1954 Code and shall apply to refunding bonds described in paragraph (1): (A) The requirements of section 147(f) (relating to public approval required for private activity bonds) but only if the

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