Page:United States Statutes at Large Volume 102 Part 4.djvu/578

 102 STAT. 3548 26 USC 103 note.

PUBLIC LAW 100-647—NOV. 10, 1988 (15) A bond issued to refund an obligation described in section 103(o)(3) of the Internal Revenue Code of 1954 (as in effect on the day before the date of the enactment of the Tax Reform Act of 1986) shall not be treated as described in section 144(b) of the 1986 Code unless it is described in section 144(b)(1)(A) of the 1986 Code. (d) AMENDMENTS RELATED TO SECTION 1314 OF THE REFORM ACT.—

26 USC 141 note.

(1) Subsection (a) of section 1314 of the Reform Act is amended by adding at the end thereof the following: "The preceding sentence shall not apply to the first advance refunding after September 25, 1985, of a bond issued before September 26, 1985." (2) Subsection (f) of section 1314 of the Reform Act is amended by striking out "December" and inserting in lieu thereof "August". (3) Section 1314 of the Reform Act is amended by redesignating subsection (g) as subsection (i) and by inserting after subsection (f) the following new subsections: "(g)

TERMINATION

OF

MORTGAGE

BOND

POLICY

STATEMENT

REQUIREMENT.—Paragraph (5) of section 103A(j) of the 1954 Code (relating to policy statement) shall not apply to any bond issued after August 15, 1986, and shall not apply to nonissued bond amounts elected under section 25 of the 1986 Code after such date. "(h) ARBITRAGE RESTRICTION ON INVESTMENTS IN INVESTMENT-TYPE

PROPERTY.—In the case of a bond issued before August 16, 1986 (September 1, 1986 in the case of a bond described in section 1312(c)(2)), section 103(c) of the 1954 Code shall be applied by treating the reference to securities in paragraph (2) thereof as including a reference to investment-type property but only for purposes of determining whether any bond issued after October 16, 1987, to advance refund such bond (or a bond which is part of a series of refundings of such bond) is an arbitrage bond (within the meaning of section 148(a) of the 1986 Code)." (e) AMENDMENTS RELATED TO SECTION 1315 OF THE REFORM ACT.—

(1) Subsection (c) of section 1315 of the Reform Act is amended— (A) by inserting "for calendar year 1986" after "1954 Code" each place it appears, (B) by striking out "before August 16" each place it appears and inserting in lieu thereof "on August 15", and (C) by adding at the end thereof the following new sentence: "The preceding sentence shall not apply to the extent section 1313(b)(5) treats any bond as a private activity bond for purposes of section 146 of the 1986 Code." (2)(A) Subsection (e) of section 1315 of the Reform Act is amended by adding at the end thereof the following new sentence: "The preceding sentence shall not apply to any bond which (if issued on August 15, 1986) would have been an industrial development bond (as defined in section 103(b)(2) of the 1954 Code)." 26 USC 141 note. (B) The amendment made by subparagraph (A) shall apply to bonds issued after June 10, 1987. (f) AMENDMENTS RELATED TO SECTION 1316 OF THE REFORM ACT.—

26 USC 141 note.

(1)(A) Subsections (a)(D, (b)(D, (c)(D, and (f)(1) of section 1316 of the Reform Act are each amended by inserting "and as having a

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