102 STAT. 3448

PUBLIC LAW 100-647—NOV. 10, 1988

26 USC 265 note.

"(HI) the refunding obligation has a maturity
date which is not later than the date which is 30
years after the date the original qualified tax-
exempt obligation was issued.

Subclause (ED shall not apply if the average maturity of
the issue of which the original qualified tax-exempt
obligation was a part (and of the issue of which the
obligations to be refunded are a part) is 3 years or less.
For purposes of this clause, average maturity shall be
determined in accordance with section 147(bX2XA).

"(iii) CERTAIN OBLIGATIONS MAY NOT BE DESIGNATED

OR DEEMED DESIGNATED.—No obligation issued as part

of an issue may be designated under this paragraph (or

may be treated as designated under clause (ii)) if—

"(I) any obligation issued as part of such issue is

issued to refund another obligation, and

"(H) the aggregate face amount of such issue
exceeds $10,000,000,

"(E) AGGREGATION OF ISSUERS.—For purposes of subpara-
graphs (C) and (D)—

"(i) an issuer and all entities which issue obligations
on behalf of such issuer shall be treated as 1 issuer,
"(ii) all obligations issued by a subordinate entity
shall, for purposes of applying subparagraphs (C) and
(D) to each other entity to which such entity is subordi-
nate, be treated as issued by such other entity, and
"(iii) an entity formed (or, to the extent provided by
the Secretary, availed of) to avoid the purposes of
subparagraph (C) or (D) and all entities benefiting
thereby shall be treated as 1 issuer.
"(F) TREATMENT OF COMPOSITE ISSUES.—In the case of an
obligation which is issued as part of a direct or indirect
composite issue, such obligation shall not be treated as a
qualified tax-exempt obligation unless—

"(i) the requirements of this paragraph are met with
respect to such composite issue (determined by treating
such composite issue as a single issue), and

"(ii) the requirements of this paragraph are met with
respect to each separate lot of obligations which are
part of the issue (determined by treating each such
separate lot as a separate issue)."

(B) In the case of any obligation issued after August 7,
1986, and before January 1, 1987, the time for making a
designation with respect to such obligation under section
265(bX3XBXiii) of the 1986 Code shall not expire before
January 1,1989.
(Off-

(i) an obligation is issued on or after January 1,1986,
and on or before August 7,1986,

(ii) when such obligation was issued, the issuer made
a designation that it intended to qualify under section
802(eX3) of H.R. 3838 of the 99th Congress as passed by
the House of Representatives, and

(iii) the issuer makes an election under this subpara-
graph with respect to such obligation,
for purposes of section 265(bX3) of the 1986 Code, such
obligation shall be treated as issued on August 8, 1986.