A bill to amend the Internal Revenue Code of 1954 with respect to refunding obligations.

Amends the Internal Revenue Code with respect to industrial development bonds to permit refunding issues to proceed to closing, notwithstanding Treasury Department regulations proposed on December 1, 1979, but only if, prior to that date: (1) specified authorizing actions toward the issuance of the refunding obligations were taken by the issuer's governing body or the affected corporation; or (2) a bond purchase agreement for the sale of the refunding obligations had been executed. Requires that the proceeds of such refunding obligations be applied solely to the payment of principal, interest, and any redemption premium on the refunded obligations either at or prior to the maturity thereof, and the payment of the issuance expenses of the refunding bonds.