under such bond which shall be payable by the Secretary as provided in subsection (b). (b) Payment of Credit The Secretary shall pay (contemporaneously with each interest payment date under such bond) to the issuer of such bond (or to any person who makes such interest payments on behalf of the issuer) 35 percent of the interest payable under such bond on such date. (c) Broadband infrastructure bond For purposes of this section— (1) In general The term broadband infrastructure bond means any obligation (other than a private activity bond)— (A) the interest on which would (but for this section) be excludable from gross income under section 103, (B) which is issued by a qualified issuer, (C) which is issued as part of an issue with respect to which— (i) the requirements of paragraph (2) are met, (ii) all of the property to be financed by the net proceeds of the issue is to be owned by a governmental unit (within the meaning of section 142(b)(1)), and (iii) the aggregate face amount of bonds issued pursuant to the issue, when added to the aggregate face amount of broadband infrastructure bonds previously issued by the issuing authority during the calendar year, does not exceed such issuing authority's allocation of its State's volume cap under subsection (d) for such year, and (D) which the issuer designates (at such time and in such manner as the Secretary may prescribe) as an obligation to which this section applies. (2) Special rules relating to expenditures (A) In general An issue shall be treated as meeting the requirements of this paragraph if, as of the date of issuance, the issuer reasonably expects— (i) 100 percent of the available project proceeds to be spent in connection with 1 or more qualified broadband projects within the 3-year period beginning on such date of issuance, and (ii) a binding commitment with a third party to spend at least 10 percent of such available project proceeds will be incurred within the 6-month period beginning on such date of issuance. (B) Failure to spend required amount of