Page:United States Statutes at Large Volume 102 Part 4.djvu/759

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3729

SEC. 6181. RULES RELATING TO REBATE ON EARNINGS ON BONA FIDE DEBT SERVICE FUND. (a) No REBATE WHERE EARNINGS DO NOT EXCEED $100,000.—

Clause (ii) of section 148(f)(4)(A) of the 1986 Code is amended by striking "unless the issuer otherwise elects,". OJ) $100,000 LIMIT NOT TO APPLY TO CERTAIN ISSUES.—Subpara-

graph (A) of section 148(f)(4) of the 1986 Code is amended by adding at the end thereof the following new sentence: "In the case of an issue no bond of which is a private activity bond, clause (ii) shall be applied without regard to the dollar limitation therein if the average maturity of the issue (determined in accordance with section 147(b)(2)(A)) is at least 5 years and the rates of interest on bonds which are part of the issue do not vary during the term of the issue." (c) EFFECTIVE DATE; SPECIAL RULES.— 26 USC 148 note. (1) IN GENERAL.—The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act. (2) ELECTION FOR OUTSTANDING BONDS.—Any issue of bonds other than private activity bonds outstanding as of the date of the enactment of this Act shall be allowed a 1-time election to apply the amendments made by subsection (b) to amounts deposited after such date in bona fide debt service funds of such bonds. (3) DEFINITION OF PRIVATE ACTIVITY BOND.—For purposes of

this section and the last sentence of section 148(fK4XA) of the 1986 Code (as added by subsection (b)), the term 'private activity bond' shall include any qualified 501(c)(3) bond (as defined under section 145 of the 1986 Code). SEC. 6182. BONDS ISSUED BY VOLUNTEER FIRE DEPARTMENTS. (a) OVERLAPPING AREAS.—Paragraph (2) of section 150(e) of the

1986 Code (relating to bonds of certain volunteer fire departments) is amended by adding at the end thereof the following new sentence: "For purposes of subparagraph (A), other firefighting services provided in an area shall be disregarded in determining whether an organization is a qualified volunteer fire department if such other firefighting services are provided by a qualified volunteer fire department (determined with the application of this sentence) and such organization and the provider of such other services have been continuously providing firefighting services to such area since January 1, 1981." O> ACQUISITION OF LAND PERMITTED.—Subparagraph (B) of section t)

150(e)(l) of the 1986 Code is amended by inserting "(including land which is functionally related and subordinate thereto)" after "a firehouse". (c) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 150 note. apply to bonds issued after the date of the enactment of this Act. SEC. 6183. DISREGARD OF POOLED FINANCINGS IN DETERMINATION OF QUALIFICATION FOR SMALL ISSUER EXCEPTION.

(a) GENERAL.—Clause (ii) of section 148(f)(4)(C) of the 1986 Code (as amended by title I of this Act) is amended by redesignating subclauses (II) and (III) as subclauses (III) and (IV), respectively, and by inserting after subclause (I) the following new subclause: "(II) all bonds issued by a governmental unit on behalf of other governmental units with genergd

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