PUBLIC LAW 100-647—NOV. 10, 1988 102 STAT. 3447

"(ii) OBLIGATIONS NOT TAKEN INTO ACCOUNT IN DETER

MINING STATUS AS QUALIFIED SMALL ISSUER.—For pur-

poses of clause (i), an obligation is described in this

clause if such obligation is—

"(I) a private activity bond (other than a quali-
fied 501(cX3) bond, as defined in section 145),

"(II) an obligation to which section 141(a) does
not apply by reason of section 1312, 1313, 1316(g),
or 1317 of the Tax Reform Act of 1986 and which
would (if issued on August 15, 1986) have been an
industrial development bond (as defined in section
103(bX2) as in effect on the day before the date of
the enactment of such Act) or a private loan bond
(as defined in section 103(oX2XA), as so in effect,
but without regard to any exception from such
definition other than section 103(oX2XA)), or

"(III) an obligation issued to refund (other than
to advance refund within the meaning of section
149(dX5)) any obligation to the extent the amount
of the refunding obligation does not exceed the
outstanding amount of the refunded obligation,
"(iii) ALLOCATION OF AMOUNT OF ISSUE IN CERTAIN

CASES.—In the case of an issue under which more than

1 governmental entity receives benefits, if—

"(I) all governmental entities receiving benefits
from such issue irrevocably agree (before the date
of issuance of the issue) on an allocation of the
amount of such issue for purposes of this subpara-
graph, and

"(II) such allocation bears a reasonable relation-
ship to the respective benefits received by such
entities,

then the amount of such issue so allocated to an entity

(and only such amount with respect to such issue) shall

be taken into account under clause (i) with respect to

such entity.
"(D) LIMITATION ON AMOUNT OF OBLIGATIONS WHICH MAY

BE DESIGNATED.—

"(i) IN GENERAL.—Not more than $10,000,000 of
obligations issued by an issuer during any calendar
year may be designated by such issuer for purposes of
this paragraph.

"(ii) CERTAIN REFUNDINGS OF DESIGNATED OBLIGATIONS
DEEMED DESIGNATED.—Except as provided in clause (iii),
in the case of a refunding (or series of refundings) of a
qualified tax-exempt obligation, the refunding obliga-
tion shall be treated as a qualified tax-exempt obliga-
tion (and shall not be taken into account under clause

G))if—

"(I) the refunding obligation was not taken into
account under subparagraph (C) by reason of
clause (iiXHI) thereof,

"(II) the average maturity date of the refunding
obligations issued as part of the issue of which such
refunding obligation is a part is not later than the
average maturity date of the obligations to be re-
funded by such issue, and