PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3727

out "the earliest of the maturity date of the issue, the date 6 months
after such date of issuance/' and inserting in lieu thereof "the
earlier of the date 6 months after such date of issuance."

(b) DUE DATE FOR LAST INSTALLMENT OF ARBITRAGE REBATE.—Para-
graph (3) of section 148(0 of the 1986 Code is amended by adding at
the end thereof the following new sentence: "In the case of a tax and
revenue anticipation bond, the last installment shall not be required
to be made before the date 8 months after the date of issuance of the
issue of which the bond is a part."

(c) EFFECTIVE DATE.—The amendments made by this section shall 26 use 148 note.
apply to bonds issued after the date of the enactment of this Act.

SEC 6178. AMENBMENT TO MORTGAGE BOND PURCHASE PRICE REGULA-
TIONS.

The Secretary of the Treasury or his delegate shall amend the
regulations relating to mortgage bond purchase price requirements,
with respect to any lease with a remaining term of at least 35 years
and a specified ground rent for at least the first 10 years of such
term but not for the entire term, to provide for a capitalized value of
such lease equal to the present value of the current ground rent
projected over the remaining term of the lease and discounted at 3
percent or such other discount rate as the Secretary establishes. If
such amendment is not made before the date of the enactment of
this Act, such regulations shall be considered to include such
amendment with respect to bonds issued after such date.

SEC 6179. APPLICATION OF SECURITY INTEREST TEST TO BON0 iWANC- 26 USC 141 note.
ING OF HAZARDOUS WASTE CLEAN-UP ACTIVITIES.

Before January 1, 1989, the Secretary of the Treasury or his
delegate shall issue guidance concerning the application of the
private security or payment test under section 141(bX2) of the
Internal Revenue Code of 1986 to tax-exempt bond financing by
State and local governments of hazardous waste clean-up activities
conducted by such governments where some of the activities occur
on privately owned land.

SEC. 6180. TAX-EXEMPT FINANCING FOE CERTAIN RAIL FACILITIES.

(a) IN GENERAL.—Subsection (a) of section 142 of the 1986 Code
(relating to exempt facility bonds) is amended—

(1) by striking out "or" at the end of paragraph (9),

(2) by striking out the period at the end of paragraph (10) and
inserting in lieu thereof ", or", and

(3) by adding at the end thereof the following new paragraph:
"(11) high-speed intercity rail facilities."

(b) DEFINITION AND SPECIAL RULES FOR HIGH-SPEED INTERCITY RAIL
FACILITIES.—

(1) IN GENERAL.—Section 142 of the 1986 Code is amended by
adding at the end thereof the following new subsection:
"(i) HIGH-SPEED INTERCITY RAIL FACILITIES.—

"(1) For purposes of subsection (aXll), the term ^high-speed
intercity rail facilities' means any facility (not including rolling
stock) for the fixed guideway rail transportation of passengers
and their baggage between metropolitan statistical areas
(within the meaning of section 143(kX2XB)) using vehicles that
are reasonably expected to operate at speeds in excess of 150
miles per hour between scheduled stops, but only if such facility