Page:United States Statutes at Large Volume 102 Part 4.djvu/615

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3585

(2) Subsection (g) of section 1246 of the 1986 Code (as redesignated by this Act) is amended by striking out "1248(g)(3)" and inserting in lieu thereof "1248(g)(2)". (3) Subsection (f) of section 6229 of the 1986 Code is amended Contracts, by adding at the end thereof the following new sentence: "The period described in the preceding sentence (including any extension period under this sentence) may be extended with respect to any partner by agreement entered into by the Secretary and such partner." (p) AMENDMEISTT RELATED TO SECTION 1878 OF THE REFORM ACT.—

Paragraph (1) of section 852(e) of the 1986 Code is amended by striking out "subsection (a)(3)" and inserting in lieu thereof "subsection (a)(2)". (q) AMENDMENTS RELATED TO SECTION 1879 OF THE REFORM ACT.—

(1) Subclause (II) of section 28(b)(2)(A)(ii) of the 1986 Code is amended to read as follows: "(II) before the date on which an application with respect to such drug is approved under section 505(b) or 507 of such Act or, if the drug is a biological product, before the date on which a license for such drug is issued under section 351 of the Public Health Service Act; cmd". (2) The last sentence of section 1361(d)(3) of the 1986 Code is amended by striking out "treated as a separate trust under section 663(c)" and inserting in lieu thereof "within the meaning of section 663(c)". (3) Subsection (p) of section 1879 of the Reform Act is 26 USC 83 note. amended— (A) by striking out "Subsection (a)" in paragraph (2) and inserting "Paragraph (1)", and (B) by striking out "subsection (a)" each place it appears in paragraphs (2) and (3) and inserting in lieu thereof "paragraph (1)". (4)(A) Subsection (d) of section 1286 of the 1986 Code is amended to read as follows: "(d) SPECIAL RULES FOR TAX-EXEMPT OBLIGATIONS.—

"(1) IN GENERAL.—In the case of any tax-exempt obligation (as defined in section 1275(a)(3)) from which 1 or more coupons have been stripped— "(A) the amount of the original issue discount determined under subsection (a) with respect to any stripped bond or stripped coupon— "(i) shall be treated as original issue discount on a tax-exempt obligation to the extent such discount does not exceed the tax-exempt portion of such discount, and "(ii) shall be treated as original issue discount on an obligation which is not a tax-exempt obligation to the extent such discount exceeds the tax-exempt portion of such discount, "(B) subsection (b)(l)(A) shall not apply, and "(C) subsection (b)(2) shall be applied by increasing the basis of the bond or coupon by the sum of— "(i) the interest accrued but not paid before such bond or coupon was disposed of (and not previously reflected in basis), plus "(ii) the amount included in gross income under subsection (b)(l)(B).

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