PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3549

carryforward purpose described in section 146(f)(5) of such
Code" after "the 1986 Code".

(B) The amendment made by subparagraph (A) shall apply 26 USC141 note,
only with respect to carryforwards of volume cap for years after
1986.

(2) Subsection (c) of section 1316 of the Reform Act is amended 26 USC 141 note.
by adding at the end thereof the following new paragraph:

"(4) APPLICATION OF SECTION 147 <b).—A bond to which this
subsection applies (other than a refunding bond) shall be treat-
ed as meeting the requirements of section 147(b) of the 1986
Code if the average maturity (determined in accordance with
section 147(b)(2)(A) of such Code) of the issue of which such bond
is a part does not exceed 20 years. A bond issued to refund (or
which is part of a series of bonds issued to refund) a bond
described in the preceding sentence shall be treated as meeting
the requirements of such section if the refunding bond has a
maturity date not later than the date which is 20 years after the
date on which the original bond was issued/'

(3) Paragraph (1) of section 1316(e) of the Reform Act is
amended—

(A) by inserting "(and section 103(h)(2XB)(ii) of the 1954
Code)" after "1986 Code" the first place it appears, and

(B) by inserting "(and section 103(b)(16) of the 1954 Code)"
after "1986 Code* in the last sentence.

(4) Paragraph (2) of section 1316(g) of the Reform Act is
amended—

(A) by striking out "described in the paragraph (3)" in
subparagraph (A) and inserting in lieu thereof "issued to
provide a facility described in paragraph (3)", and

(B) by striking out "which paragraph (3)" in subpara-
graph (C) and inserting in lieu thereof "which such para-
graph (3)".

(5) Paragraph (6) of section 1316(g) of the Reform Act is
amended by inserting "(and the provisions of section 1314)"
after "section 1301".

(6) Paragraph (7) of section 1316(g) of the Reform Act is
amended to read as follows:

"(7) In the case of a bond described in section 632(d) of the Tax
Reform Act of 1984—

"(A) section 141 of the 1986 Code shall be applied without
regard to subsection (a)(2) and paragraphs (4) and (5) of
subsection (b),

"(B) paragraphs (1) and (2) of section 141(b) of the 1986
Code shall be applied by substituting '25 percent' for '10
percent' each place it appears, and

"(C) section 149(b) of the 1986 Code shall not apply.
This paragraph shall not apply to any bond issued after Decem-
ber 31,1990.

(7XA) Subparagraph (A) of section 1316(g)(8) of the Reform Act
is amended by inserting "and as having a carryforward purpose
described in section 146(1X5) of such Code" after "the 1986
Code"

(B) The amendment made by subparagraph (A) shall apply 26 USC 141 note.
only with respect to carryforwards of volume cap for years after
1986.

(8) Paragraph (2) of section 1316(j) of the Reform Act is
amended to read as follows: