; or (bb) public water systems serving fewer than 25,000 persons. (II) Priorities In selecting the recipient of a grant using amounts described in clause (i), a State shall use the priorities described in subsection (b)(3)(A). (iii) No increased bonding authority The amounts deposited in the State loan fund of a State under subsection (t) may not be used as a source of payment of, or security for (directly or indirectly), in whole or in part, any obligation the interest on which is exempt from the tax imposed under chapter 1 of the Internal Revenue Code of 1986. ; (2) in subsection (m)(1), in the matter preceding subparagraph (A), by striking this section and inserting this section, except for subsections (a)(2)(G) and (t)