Page:United States Statutes at Large Volume 100 Part 1.djvu/290

 100 STAT. 254

PUBLIC LAW 99-272—APR. 7, 1986 "LIABILITY FOR TERMINATION OF SINGLE-EMPLOYER PLANS UNDER A DISTRESS TERMINATION OR A TERMINATION BY THE CORPORATION

Ante, p. 248. Ante, p. 253.

Ante, pp. 248, 253.

"SEC. 4062. (a) IN GENERAL.—In any case in which a singleemployer plan is terminated in a distress termination under section 4041(c) or a termination otherwise instituted by the corporation under section 4042, any person who is, on the termination date, a contributing sponsor of the plan or a member of such a contributing sponsor's controlled group shall incur liability under this section. The liability under this section of all such persons shall be joint and several. The liability under this section consists of— "(1) liability to the corporation, to the extent provided in subsection (b), "(2) liability to the trust established pursuant to section 4041(c)(3)(B) (ii) or (iii) or section 4042(i), to the extent provided in subsection (c), and "(3) liability to the trustee appointed under subsection (b) or (c) of section 4042, to the extent provided in subsection (d). "(b) LlABILITY TO THE CORPORATION.— "(1) AMOUNT OF LIABILITY.—

"(A) IN GENERAL.—Except as provided in subparagraph (B), the liability to the corporation of a person described in subsection (a) shall consist of the sum of— "(i) the lesser of— "(I) the total amount of unfunded guaranteed benefits (as of the termination date) of all participants and beneficiaries under the plan, or "(II) 30 percent of the collective net worth of all persons described in subsection (a), and "(ii) the excess (if any) of— "(I) 75 percent of the amount described in clause (i)(I), over "(II) the amount described in clause (i)(II), together with interest (at a reasonable rate) calculated from the termination date in accordance with regulations prescribed by the corporation. "(B)

SPECIAL RULE IN CASE OF SUBSEQUENT INSUFFI-

CIENCY.—For purposes of subparagraph (A), in any case described in section 4041(c)(3)(C)(ii), actuarial present values shall be determined as of the date of the notice to the corporation (or the finding by the corporation) described in such section. "(2) PAYMENT OF LIABILITY.—

"(A) IN GENERAL.—Except as provided in subparagraph (B), the liability to the corporation under this subsection shall be due and payable to the corporation as of the termination date, in cash or securities acceptable to the corporation. "(B) SPECIAL RULE.—Payment of the liability under paragraph (l)(A)(ii) shall be made under commercially reasonable terms prescribed by the corporation. The parties involved shall make a reasonable effort to reach agreement on such commercially reasonable terms. Any such terms prescribed by the corporation shall provide for deferral of 50 percent of any amount of liability otherwise payable for any year under this subparagraph if a person subject to

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