Page:United States Statutes at Large Volume 100 Part 3.djvu/855

 PUBLIC LAW 99-514—OCT. 22, 1986 "4:r

100 STAT. 2663

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(A) paragraph (2) of this subsection shall be applied by substituting "September 1, 1986" for "August 16, 1986, (B) paragraph (3) shall be applied without regard to subparagraphs (A), (B), and (F), and (C) such bond shall not be treated as a private activity bond for purposes of applying the requirements referred to in subparagraphs (C) and (E).

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(5) CERTAIN REFUNDING BONDS SUBJECT TO VOLUME CAP.—Any

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refunding bond described in paragraph (1) the proceeds of which are used to refund a bond issued as part of an issue 5 percent or more of the net proceeds of which are to be used to provide an output facility (within the meaning of section 141(b)(4) of the 1986 Code) shall be treated as a private activity bond for purposes of section 146 of the 1986 Code (to the extent of the nongovernmental use of such issue, under rules similar to the rules of section 146(m)(2) of such Code). For purposes of the preceding sentence, use by a 501(c)(3) organization with respect to its activities which do not constitute unrelated trades or businesses (determined by applying section 513(a) of the 1986 Code) shall not be taken into account.

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(c) TREATMENT OF CURRENT REFUNDINGS OF CERTAIN I D B ' S AND 501(c)(3) BONDS.— (1) $40,000,000 LIMIT FOR CERTAIN SMALL ISSUE BONDS.—Para-

graph (10) of section 144(a) of the 1986 Code shall not apply to any bond the proceeds of which are used exclusively to refund a tax-exempt bond to which such paragraph and the correspond'* ing provision of prior law do not apply if— (A) the refunding bond has a maturity date not later than i the maturity date of the refunded bond, (B) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, «• (C) the interest rate on the refunding bond is lower than £ the interest rate on the refunded bond, and (D) the net proceeds of the refunding bond are used to redeem the refunded bond not later than 90 days after the date of the issuance of the refunding bond. t' (2) $150,000,000 LIMITATION FOR CERTAIN 501(C)(3) BONDS.— Subsection (b) of section 145 of the 1986 Code (relating to $150,000,000 limitation for nonhospital bonds) shall not apply to 5 any bond the proceeds of which are used exclusively to refund a tax-exempt bond to which such subsection does not apply if— ? (A)(i) the average maturity of the issue of which the u. > 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 j*o i under section 147(b) of the 1986 Code), or (ii) the refunding bond has a maturity date not later than r/ the later of the date which is 17 years after the date on which the qualified bond (as defined in subsection (a)(2)) was issued, and (B) the requirements of subparagraphs (B) and (D) of c paragraph (1) are met with respect to the refunding bond. i Subsection (b) of section 145 of the 1986 Code shall not apply to the 1st advance refunding after March 14, 1986, of a bond issued before January 1, 1986. (3) APPLICATION TO LATER ISSUES.—Any bond to which section 144(a)(10) or 145(b) of the 1986 Code does not apply by reason of

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