Page:United States Statutes at Large Volume 82.djvu/309

 82 STAT. ] 1 1 \ 1 J \

PUBLIC LAW 90-364-JUNE 28, 1968

267

is not an exempt person (within the meaning of paragraph (3)), and " (B) the payment of the principal or interest on which (under the terms of such obligation or any underlying arrangement) is, in whole or in major part— " (i) secured by any interest in property used or to be used in a trade or business or in payments in respect of such property, or "(ii) to be derived from payments in respect of property, or borrowed money, used or to be used in a trade or business.

' " (8) EXEMPT PERSON.—For purposes of paragraph (2)(A),

the term 'exempt person' means— " (A) a governmental unit, or Stat. 163. " (B) an organization described in section 501(c)(3) and 68A s e 501. 26 u exempt from tax under section 501(a) (but only with respect to a trade or business carried on by such organization which is not an unrelated trade or business, determined by applying section 513(a) to such organization). "(4,) CERTAIN EXEMPI' ACITVITIES.—Paragraph (1) shall not apply to any obligation which is issued as part of an issue substantially all of the proceeds of which are to be used to provide— " (A) residential real property for family units, " (B) sports facilities, " (C) convention or trade show facilities, " (D) airports, docks, wharves, mass commuting facilities, l^arking facilities, or storage or training facilities directly related to any of the foregoing, " (E) sewage or solid waste disposal facilities or facilities for the local furnishing of electric energy, ^as, or water, or " (F) air or water pollution control facilities. "(5) INDUSTRIAL PARKS.—Paragraph (1) shall not apply to any obligation issued as part of an issue substantially all of the proceeds of which are to be used for the acquisition or development of land as the site for an industrial park. For purposes of the "Development of preceding sentence, the term 'development of land' includes the ^^"'^ provision of water, sewage, drainage, or similar facilities, or of transportation, power, or communication facilities, which are incidental to use of the site as an industrial park, but, except with respect to such facilities, does not include the provision of structures or buildings. "(6)

EXEMPTION FOR CERTAIN SMALL ISSUES.—

" (A) IN GENERAL.—Paragraph (1) shall not apply to any obligation issued as part of an issue the aggregate authorized face amount of which is $1,000,000 or less and substantially all of the proceeds of which are to be used (i) for the acquisition, construction, reconstruction, or improvement of land or property of a character subject to the allowance for depreciation, or (ii) to redeem part or all of a prior issue which was issued for purposes described in clause (i) or this clause. "(B)

CERTAIN PRIOR ISSUES TAKEN INIX) ACCOUNT.—If—

" (i) the proceeds of two or more issues of obligations (whether or not the issuer of each such issue is the same) are or will be used primarily with respect to facilities located in the same incorporated municipality or located in the same county (but not in any incorporated municipalit;5f)» "(li) the principal user of such facilities is or will be the same person or two or more related persons, and

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