,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #bggb  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #ae1 #bjai,mr4   
,rupp]sb]g] 7= himself1 ,mr4 ,/iv]s1    
,ms4 ,sewell ( ,alabama1 ,mr4 ,zeld91   
,ms4 ,norton1 ,mr4 ,kri%namoor?i1 ,mr4  
,g>am5di1 ,mr4 ,kilm]1 ,mr4 ,cuell>1 &  
,mr4 ,b>r7 introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,ways &     
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to re9/ate advance
 refund+ bonds4  #a4 ,%ort title ,?is   
,act may be cit$ z ! ,inve/+ 9 ,our     
,communities ,act4  #b4 ,treatm5t (     
advance refund+ bonds  7a7 ,9 g5]al     
,section #adi7;d7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$--  7#a7 9        
p>agraph 7#a71 by /rik+ to advance      
refund ano!r bond & ins]t+ z "p ( an    
issue describ$ 9 p>agraph 7#b71 7#c71 or
 7#d72  7#b7 by r$esignat+ p>agraphs    
7#b7 & 7#c7 z p>agraphs 7#f7 & 7#g71    
respectively2 &  7#c7 by ins]t+ aft]    
p>agraph 7#a7 ! foll[+ new p>agraphs3   
7#b7 ,c]ta9 private activity bonds ,an  

issue is describ$ 9 ?is p>agraph if any 
bond 7issu$ z "p ( su* issue7 is issu$  
to advance refund a private activity    
bond 7o!r ?an a qualifi$ #eja7;c77#c7   
bond74  7#c7 ,o!r bonds  7,a7 ,9 g5]al  
,an issue is describ$ 9 ?is p>agraph if 
any bond 7issu$ z "p ( su* issue71      
h]e9aft] 9 ?is p>agraph ref]r$ to z !   
refund+ bond1 is issu$ to advance refund
 a bond unless--  7i7 ! refund+ bond is 
only-- 7,i7 ! #a/ advance refund+ ( !   
orig9al bond if ! orig9al bond is issu$ 
aft] #aihe1 or  7,,ii7 ! #a/ or #bnd    
advance refund+ ( ! orig9al bond if !   
orig9al bond 0 issu$ be=e #aihf1  7ii7 9
 ! case ( refund$ bonds issu$ be=e      
#aihf1 ! refund$ bond is r$eem$ n lat]  
?an ! e>lie/ date on :i* su* bond may be
 r$eem$ at p> or at a premium ( #c p]c5t
 or less1  7iii7 9 ! case ( refund$     
bonds issu$ aft] #aihe1 ! refund$ bond  
is r$eem$ n lat] ?an ! e>lie/ date on   
:i* su* bond may be r$eem$1  7iv7 !     
initial tempor>y p]iod "u section       
#adh7;c7 ends-- 7,i7 ) respect to !     

proce$s ( ! refund+ bond n lat] ?an #cj 
days aft] ! date ( issue ( su* bond1 &  
7,,ii7 ) respect to ! proce$s ( !       
refund$ bond on ! date ( issue ( !      
refund+ bond1 &  7v7 9 ! case ( refund$ 
bonds to :i* section #adh7;e7 did n     
apply1 on & aft] ! date ( issue ( !     
refund+ bond1 ! am\nt ( proce$s ( !     
refund$ bond inve/$ 9 high] yield+      
inve/m5ts 7z def9$ 9 section #adh7;b77  
:i* are nonpurpose inve/m5ts 7z def9$ 9 
section #adh7;f77#f77;,a77 does n       
exce$--  7,i7 ! am\nt s inve/$ z "p ( a 
reasonably requir$ res]ve or replacem5t 
fund or dur+ an all[able tempor>y p]iod1
 &  7,,ii7 ! am\nt :i* is equal to !    
less] ( #e p]c5t ( ! proce$s ( ! issue (
 :i* ! refund$ bond is a "p or #ajj1jjj 
7to ! ext5t su* am\nt is allocable to ! 
refund$ bond74  7,b7 ,special rules =   
r$emptions  7i7 ,issu] mu/ r$eem only if
 debt s]vice sav+s ,clause 7ii7 & 7iii7 
( subp>agraph 7,a7 %all apply only if ! 
issu] may realize pres5t value debt     
s]vice sav+s 7det]m9$ )\t reg>d to      

adm9i/rative exp5ses7 9 connection ) !  
issue ( :i* ! refund+ bond is a "p4     
7ii7 ,r$emptions n requir$ be=e #ij? day
 ,= purposes ( clauses 7ii7 & 7iii7 (   
subp>agraph 7,a71 ! e>lie/ date ref]r$  
to 9 su* clauses %all n be e>li] ?an !  
#ij? day aft] ! date ( issuance ( !     
refund+ bond4  7#d7 ,abusive            
transactions prohibit$ ,an issue is     
describ$ 9 ?is p>agraph if any bond     
7issu$ z "p ( su* issue7 is issu$ to    
advance refund ano!r bond & a device is 
employ$ 9 connection ) ! issuance ( su* 
issue to obta9 a mat]ial f9ancial       
advantage 7bas$ on arbitrage7 ap>t f    
sav+s attributable to l[] int]e/ rates4 
7#e7 ,special rules = purposes (        
p>agraph 7#c7 ,= purposes ( p>agraph    
7#c71 bonds issu$ be=e ! date ( !       
enactm5t ( ?is subsection %all be tak5  
into acc\nt "u subp>agraph 7,a77i7 !re( 
except--  7,a7 a refund+ :i* occurr$    
be=e #aihf %all be treat$ z an advance  
refund+ only if ! refund+ bond 0 issu$ m
 ?an #ahj days be=e ! r$emption ( !     

refund$ bond1 &  7,b7 a bond issu$ be=e 
#aihf1 %all be treat$ z advance refund$ 
no m ?an once be=e ,m>* #ae1 #aihf4  4  
7b7 ,con=m+ am5dm5t ,section            
#adh7;f77#d77;,c7 ( su* ,code is am5d$  
by r$esignat+ clauses 7xiv7 ?r\gh 7xvi7 
z clauses 7xv7 ?r\gh 7xvii7 & by ins]t+ 
aft] clause 7xiii7 ! foll[+ new clause3 
7xiv7 ,det]m9ation ( initial tempor>y   
p]iod ,= purposes ( ?is subp>agraph1 !  
end ( ! initial tempor>y p]iod %all be  
det]m9$ )\t reg>d to section            
#adi7;d77#c77;,a77iv74  4  7c7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to advance refund+   
bonds issu$ aft] ! date ( ! enactm5t (  
?is ,act4