102 STAT. 3538 PUBLIC LAW 100-647— NOV. 10, 1988

(BXi) Subclause (D of section 144(aX12XAXii) of the 1986 Code
is amended to read as follows:

"(I) the average maturity date of the issue of
which the refunding bond is a part is not later than
the average maturity date of the bonds to be
refunded by such issue/'.

(ii) Subparagraph (A) of section 144(aX12) of the 1986 Code is
amended by adding at the end thereof the following new sen-
tence:

"For purposes of clause (iiXD, average maturity shall be
determined in accordance with section 147(bX2XA)."

26 use 144 note. (iii) A refunding bond issued before July 1, 1987, shall be

treated as meeting the requirement of subclause (I) of section
144(aX12XAXii) of the 1986 Code if such bond met the require-
ment of such subclause as in effect before the amendments
made by this subparagraph.

(O Clause (ii) of section 144(aX12XA) of the 1986 Code is
amended by adding "and" at the end of subclause (II), by
striking out subclause (HI), and by redesignating subclause (IV)
as subclause (UD-

Loans. (5) Subparagraph (B) of section 144(bXD of the 1986 Code is

amended —

(A) by striking out "to which part B of title IV of the
Higher Education Act of 1965 (relating to guaranteed stu-
dent loans) does not apply9, and

(B) by striking out "of such Act" and inserting in lieu
thereof "of the Higher Education Act of 1965", and

(O by striking out "eligible" and all that follows in such
subparagraph and inserting in lieu thereof the following:
"eligible. A program shall not be treated as described in
this subparagraph if such program is described in subpara-
graph (A).

A bond shall not be treated as a qualified student loan bond if
the issue of which such bond is a part meets the private
business tests of paragraphs (1) and (2) of section 141(b) (deter-
mined by treating 501(cX3) organizations as governmental units
with respect to their activities which do not constitute unre-
lated trades or businesses, determined by applying section
"

.

(6) Subclause (D of section 145(bX2XBXii) of the 1986 Code is
amended by striking out "103(b)" and inserting in lieu thereof
"103(bX2)".

(7) Clause (i) of section 145(bX2XC) of the 1986 Code is
amended by striking out "subparagraph (BXii)" and inserting in
lieu thereof "subparagraph (B)".

(8) Paragraph (4) of section 145(b) of the 1986 Code is amended
by striking out "subparagraphs (C) and (D)" and inserting in
lieu thereof "subparagraphs (C), (D), and (E)".

(9) Subparagraph (A) of section 146(fX5) of the 1986 Code (as in
effect before the amendments made by section 10631 of the
Sevenue Act of 1987) is amended to read as follows:

"(A) the purpose of issuing exempt facility bonds
described in 1 of the paragraphs of section 142(a),".
(10XA) Paragraph (1) of section 146(k) of the 1986 Code is
amended by striking out "paragraph (2)" and inserting in lieu
thereof "paragraphs (2) and (3)".