For purposes of this section only --
(1) Private activity bond.
The term “private activity bond” has the meaning given that term in section 141(a) of the Internal Revenue Code, except that the term does not include any bond described in section 1312(c) of the Tax Reform Act of 1986 to which section 1312 or 1313 of the Tax Reform Act of 1986 applies.
(2) Issue --
(i) In general.
Except as otherwise provided in this paragraph (e)(2), bonds are treated as part of the same issue only if the bonds are issued --
(A) By the same issuer;
(B) On the same date; and
(C) Pursuant to a single transaction or to a series of related transactions.
(ii) Draw-down loans, commercial paper, etc.
(A) Bonds issued during the same calendar year may be treated as part of the same issue if the bonds are issued --
(1) Pursuant to a loan agreement under which amounts are to be advanced periodically (“draw-down loan”); or
(2) With a term not exceeding 270 days.
(B) In addition, the bonds must be equally and ratably secured under a single indenture or loan agreement and issued pursuant to a common financing arrangement e.g., pursuant to the same official statement that is periodically updated to reflect changing factual circumstances). In the case of bonds issued pursuant to a draw-down loan that meets the requirements of the preceding sentence, bonds issued during different calendar years may be treated as part of the same issue if all the amounts to be advanced pursuant to the draw- down loan are reasonably expected to be advanced within three years of the date of issue of the first bond.
(iii) Leases and installment sales.
Bonds other than private activity bonds may be treated as part of the same issue if --
(A) The bonds are issued pursuant to a single agreement that is in the form of a lease or installment sales agreement; and
(B) All of the property covered by that agreement is reasonably expected to be delivered within three years of the date of issue of the first bond.
(iv) Qualified 501(c)(3) bonds.
If an issuer elects under section 141(b)(9) to treat a portion of an issue as a qualified 501(c)(3) bond, that portion is treated as a separate issue.
(3) Date of issue --
(i) Bond.
The date of issue of a bond is determined under section 1.150-1.
(ii) Issue.
The date of issue of an issue of bonds is the date of issue of the first bond that is part of the issue. See paragraphs (e)(2)(ii) and (iii) of this section for rules relating to draw-down loans, commercial paper, etc., and leases and installment sales.
(iii) Bonds to which prior law applied.
Notwithstanding the provisions of this paragraph (e)(3), an issue for which an information report was required to be filed under section 103(l) or section 103A(j)(3) is treated as issued prior to January 1, 1987.
(4) Issue price.
The term “issue price” has the same meaning given the term under section 1.148-1(b).
[T.D. 8425, 57 FR 36001-36004, Aug. 13, 1992; corrected by 59 FR 24350-24351, May 11, 1994.]