to which this section applies, appropriate adjustments shall be made to the applicable Federal rate to take into account the exclusion under subsection (a). (e) Period to which interest exclusion applies (1) In general In the case of— (A) an original securities acquisition loan, and (B) any securities acquisition loan (or series of such loans) used to refinance the original securities acquisition loan, subsection (a) shall apply only to interest accruing during the excludable period with respect to the original securities acquisition loan. (2) Excludable period For purposes of this subsection, the term excludable period means, with respect to any original securities acquisition loan— (A) In general The 7-year period beginning on the date of such loan. (B) Loans described in subsection (b)(1)(A) If the term of an original securities acquisition loan described in subsection (b)(1)(A) is greater than 7 years, the term of such loan. This subparagraph shall not apply to a loan described in subsection (b)(3)(B). (3) Original securities acquisition loan For the purposes of this subsection, the term original securities acquisition loan means a securities acquisition loan described in subparagraph (A) or (B) of subsection (b)(1). . (b) Conforming amendments (1) Subparagraph (B) of section 291(e)(1) of the Internal Revenue Code of 1986 is amended by redesignating clause (iv) as clause (v) and by inserting after clause (iii) the following new clause: (iv) Special rules for obligations to which section 133 applies In the case of an obligation to which section 133 applies, interest on such obligation shall not be treated as exempt from taxation for purposes of this subparagraph. . (2) Section 812 of such Code is amended by adding at the end the following: (g) Treatment of Interest Partially Tax-Exempt Under Section 133 For purposes of this section and subsections (a) and (b) of section 807, the terms gross investment income and tax-exempt interest shall not include any interest received with respect to a securities