(i)For purposes of subparagraph (A), the term “qualified tax-exempt obligation” means a tax-exempt obligation— (I)which is issued after, by a qualified small issuer, (II)which is not a private activity bond (as defined in), and (III)which is designated by the issuer for purposes of this paragraph. (ii)For purposes of clause (i)(II), there shall not be treated as a private activity bond— (I)any qualified 501(c)(3) bond (as defined in), or (II)any obligation issued to refund (or which is part of a series of obligations issued to refund) an obligation issued before, which was not an industrial development bond (as defined in section 103(b)(2) as in effect on the day before the date of the enactment of the Tax Reform Act of 1986) or a private loan bond (as defined in section 103(o)(2)(A), as so in effect, but without regard to any exemption from such definition other than section 103(o)(2)(A)). (C)
