PUBLIC LAW 100-647—NOV. 10,1988 102 STAT. 3539

(B) Subsection (k) of section 146 of the 1986 Code is amended
by adding at the end thereof the following new paragraph:
"(3) TREATMENT OF GOVERNMENTAL BONDS TO WHICH VOLUME
CAP ALLOCATED,—Paragraph (1) shall not apply to any bond to
which volume cap is allocated under section 141(b)(5)—
"(A) for an output facility, or

"(B) for a facility of a type described in paragraph (4), (5),
(6), or (10) of section 142(a),

if the issuer establishes that the State's share of the private
business use (as defined by section 141(b)(6)) of the facility will
equal or exceed the State's share of the volume cap allocated
with respect to bonds issued to finance the facility/'

(11) Subsection (e) of section 147 of the 1986 Code is amended
by striking out "treated as".

(12) Subsection (f) of section 147 of the 1986 Code (relating to
public approval requirement for private activity bonds) is
amended by adding at the end thereof the following new para-
graph:

"(4) SPECIAL RULES FOR SCHOLARSHIP FUNDING BOND ISSUES AND

VOLUNTEER FIRE DEPARTMENT BOND ISSUES.—

"(A) SCHOLARSHIP FUNDING BONDS.—In the case of a quali-
fied scholarship funding bond, any governmental unit
which made a request described in section 150(d)(2XB) with
respect to the issuer of such bond shall be treated for
purposes of paragraph (2) of this subsection as the govern-
mental unit on behalf of which such bond was issued.
Where more than one governmental unit within a State has
made a request described in section 150(dX2XB), the State
may also be treated for purposes of paragraph (2) of this
subsection as the governmental unit on behalf of which
such bond was issued.

"(B) VOLUNTEER FIRE DEPARTMENT BONDS.—In the case of
a bond of a volunteer fire department which meets the
requirements of section 150(e), the political subdivision
described in section 150(e)(2)(B) with respect to such depart-
ment shall be treated for purposes of paragraph (2) of this
subsection as the governmental unit on behalf of which
such bond was issued."

(13XA) Paragraph (1) of section 147(g) of the 1986 Code (relat-
ing to restriction on issuance costs financed by issue) is
amended by striking out "aggregate face amount of the issue"
and inserting in lieu thereof "proceeds of the issue".

(B) Paragraph (2) of section 147(g) of the 1986 Code is amended
by striking out "aggregate authorized face amount of the issue
does not" and inserting in lieu thereof "proceeds of the issue do
not".

(C) The amendments made by this paragraph shall apply to 26 USC147 note.
bonds issued after June 30,1987.

(14) Paragraph (2) of section 148(d) of the 1986 Code (relating
to special rules for reasonably required reserve or replacement
fund) is amended by striking out "any fund described in para-
graph (1)" and inserting in lieu thereof "any reserve or replace-
ment fund".

(15) Paragraph (3) of section 148(f) of the 1986 Code is amend-
ed by adding at the end thereof the following new sentence: "A
series of issues which are redeemed during a 6-month period (or
such longer period as the Secretary may prescribe) shall be