Page:United States Statutes at Large Volume 100 Part 3.djvu/901

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2709

pursuant to a long-term power sales agreement in accord ance with the Public Utility Regulatory Policies Act of 1978, and (C) the initially issued obligations are issued on or before December 31, 1986, and any of such refunding obligations are issued on or before December 31, 1996, then the person referred to in subparagraph (B) shall not be treated as a principal user of such facilities by reason of such sales for purposes of subparagraphs (D) and (E) of section 103(b)(6) of the 1954 Code. (47) TREATMENT OF CERTAIN OBLIGATIONS TO FINANCE STEAM AND ELECTRIC COGENERATION FACILITY.—IF—

(A) obligations are issued on or before December 31, 1986, in an amount not exceeding $4,400,000 to finance a facility for the generation and transmission of steam and electricity having a maximum electrical capacity of approximately 5.3 megawatts and located within the City of San Jose, California, or are issued to refund any of such obligations, (B) substantially all of the electrical power generated by such facility that is not sold to an institution of higher education created by statute of the State of California is to be sold to a nongovernmental person pursuant to a longterm power sales agreement in accordance with the Public Utility Regulatory Policies Act of 1978, and (C) the initially issued obligations are issued on or before December 31, 1986, and any of such refunding obligations are issued on or before December 31, 1996, then the nongovernmental person referred to in subparagraph (B) shall not be treated as a principal user of such facilities by reason of such sales for purposes of subparagraphs (D) and (E) of section 1030t)X6) of the Internal Revenue (Dode of 1954. (48) TREATMENT OF CERTAIN OBLIGATIONS.—A bond which is not an industrial development bond under section 103(b)(2) of the Internal Revenue Code of 1954 shall not be treated as a private activity bond for purposes of part IV of subchapter B of chapter 1 of the 1986 Code if 95 percent or more of the net proceeds of the issue of which such bond is a part are used to provide facilities described in either of the following subparagraphs: (A) A facility is described in this subparagraph if it is a governmentally-owned and operated State fair and exposition center with respect to which— (i) the 1985 session of the State legislature authorized revenue bonds to be issued in a maximum amount of $10,000,000, and (ii) a market feasibility study dated June 30, 1986, relating to a major capital improvemental program at the facility Was prepared for the advisory board of the State fair and exposition center by a certified public accounting firm. The aggregate face amount of obligations to which this subparagraph applies shall not exceed $10,000,000. (B) A facility is described in this subparagraph if it is a convention, trade, or spectator facility which is to be located in the State with respect to which subparagraph (O) applies and with respect to which feasibility and preliminary design consultants were hired on May 1, 1985 and

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