Page:United States Statutes at Large Volume 82.djvu/1392

 1350

PUBLIC LAW 90-634-OCT. 24, 1968

[82 STAT.

"(i) by substituting '$5,000,000' for '$1,000,000' in subparagraph (A), and " (ii) m determining the aggregate face amount of such issue, by taking into account not only the amount described in subparagraph (B), but also the aggregate amount of capital expenditures with respect to facilities described in subparagraph (E) paid or incurred during the 6-year period beginning 3 years before the date of such issue and ending 3 years after such date (and financed otherwise than out of the proceeds of outstanding issues to which subparagraph (A) applied), as if the aggregate amount of,such capital expenditures constituted the face amount of a prior outstanding issue described in subparagraph (B). " (E) FACILITIES TAKEN INTO ACCOUNT.—For purposes of

subparagraph (D) ( i i), the facilities described in this subparagraph are facilities— "(i) located in the same incorporated municipality or located in the same county (but ndt in any incorporated municipality), and " (ii) the principal user of which is or will be the same person or two or more related persons. For purposes of c]a.use (i), the determination of whether or not facilities are located in the same ^ov'ernmental unit shall be made as of the date of issue of the issue in question. "(F)

CERTAIN CAPITAL EXPENDITURES NOT TAKEN INTO

ACCOUNT.—For purposes of subparagraph (D) (ii), any capital expenditure— " (i) to replace property destroyed or damaged by fire, storm, or other casualty, to the extent of the fair market value of the property replaced, " (ii) required by a change made after the date of issue of the issue in question in a Federal or State law or local ordinance of general application or required by a change made after such date in rules and regulations of general application issued under such a law or ordinance, or "(iii) required by circumstances which could not be reasonably foreseen on such date of issue or arising out of a mistake of law or fact (but the aggregate amount of expenditures not taken into account under this clause with respect to any issue shall not exceed $250,000), shall not be taken into account. " (G) LIMITATION ON LOSS OF TAX EXEMPTION.—In applying

subparagraph (D) (ii) with respect to capital expenditures made after the date of any issue, no obligation issued as a part of such issue shall be treated as an obligation not described in subsection (a)(1) by reason of any such expenditure for any period before the date on which such expenditure is paid or incurred. " (H) CERTAIN REFINANCING ISSUES.—In the case of any issue described in subparagraph (A) (ii), an election may tie made under subparagraph (D) only if all of the prior issues being redeemed are issues to which subparagraph (A) a p plies. I n applying s u b p a r a ^ a p h (D) (li) with respect to such a refinancing issue, capital expenditures shall be taken into account only for purposes of determining whether the prior issues being redeemed qualified (and would have continued to qualify) under subparagraph (A). "

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