Page:United States Statutes at Large Volume 96 Part 1.djvu/516

 96 STAT. 474

PUBLIC LAW 97-248—SEPT. 3, 1982 "(C) QUALIFIED REGIONAL POLLUTION CONTROL AUTHORITY

26 USC 103 note.

26 USC 103.

DEFINED.—For purposes of this paragraph, the term 'qualified regional pollution control authority ' means a n authority which— "(i) is a political subdivision created by State law to control a i r or w a t e r pollution, "(ii) has within its jurisdictional boundaries all or part of a t least 2 counties (or equivalent political subdivisions), and "(iii) operates a i r or w a t e r pollution control facilities." (e) EFFECTIVE D A T E. — The amendments m a d e by this section shall apply to obligations issued after the date of the e n a c t m e n t of this Act. SEC. 218. TREATMENT OF CERTAIN REFUNDING OBLIGATIONS. (a) GENERAL RULE. — Paragraph (1) of section 103(b) of the I n t e r n a l Revenue Code of 1954 shall not apply to any qualified refunding obligation issued by a qualified issuer after the date of the enactm e n t of this Act. (b) QUALIFIED R E F U N D I N G O B L I G A T I O N. — For purposes of subsec-

tion (a), a qualified refunding obligation is any obligation issued a s part of a n issue if— (1) substantially all of the proceeds of such issue a r e used to defease refunded bonds which were issued under a pooled security a r r a n g e m e n t pursuant to a bond resolution which w a s adopted in 1974 and under which a t least 20 facilities h a v e been financed before 1978, and (2) each refunded bond is to be retired within 6 months after the first date on which the r e is no p r e m i u m for early retirement of such bond. (c) QUALIFIED ISSUER.—For purposes of subsection (a), a qualified issuer is a political subdivision created by a State in 1932 which is engaged primarily in promoting economic development. SEC. 219. LIMITATION ON MATURITY OF INDUSTRIAL DEVELOPMENT BONDS. (a) GENERAL RULE.—Subsection (b) of section 103 (relating to industrial development bonds) is amended by adding a t the e n d thereof the following new paragraph: "(14) MATURITY MAY NOT EXCEED 120 PERCENT O F ECONOMIC LIFE

Ante, p. 472.

"(A) GENERAL RULE.—Paragraphs (4), (5), (6), and (7) shall not apply to any obligation issued as part of a n issue if— "(i) the average m a t u r i t y of the obligations which a r e part of such issue, exceeds "(ii) 120 percent of the average reasonably expected economic life of the facilities being financed with the proceeds of such issue. "(B) DETERMINATION OF AVERAGES.—For purposes of sub-

paragraph (A)— "(i) the average m a t u r i t y of any issue shall be determined by taking into account the respective issue prices of the obligations which a r e issued a s part of such issue, and "(ii) the average reasonably expected economic life of the facilities being financed with any issue shall be

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