Page:United States Statutes at Large Volume 100 Part 3.djvu/456

 100 STAT. 2264

PUBLIC LAW 99-514—OCT. 22, 1986 "(D) SECTION 382 LIMITATION ZERO IF ANOTHER CHANGE

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WITHIN 2 YEARS.—If, during the 2-year period immediately following an ownership change to which this paragraph applies, an ownership change of the new loss corporation occurs, this paragraph shall not apply and the section 382 limitation with respect to the 2nd ownership change for any post-change year ending after the change date of the 2nd ownership change shall be zero. "(E) ONLY CERTAIN STOCK OF CREDITORS TAKEN INTO AC-

COUNT.—For purposes of subparagraph (A)(ii), stock transferred to a creditor in satisfaction of indebtedness shall be iw! taken into account only if such indebtedness— "(i) was held by the creditor at least 18 months before the date of the filing of the title 11 or similar case, or "(ii) arose in the ordinary course of the trade or business of the old loss corporation and is held by the person who at all times held the beneficial interest in such indebtedness. "(F) SPECIAL RULE FOR CERTAIN FINANCIAL INSTITUTIONS.— / "(i) IN GENERAL.—In the case of any ownership Hi>: •:'•>-> change to which this subparagraph applies, this paragraph shall be applied— "(I) by substituting '20 percent' for '50 percent' •:•-''• in subparagraph (A)(ii), and "(II) without regard to subparagraphs (B) and (C). .-

"(ii) SPECIAL RULE FOR DEPOSITORS.—For purposes of

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applying this paragraph to an ownership change to which this subparagraph applies— ?sm ': ' '• "(I) a depositor in the old loss corporation shall f'j be treated as a stockholder in such loss corporation immediately before the change, "(II) deposits which, after the change, become . deposits of the new loss corporation shall be A-treated as stock of the new loss corporation, and "(III) the fair market value of the outstanding stock of the new loss corporation shall include «. deposits described in subclause (II). "(iii) CHANGES TO WHICH SUBPARAGRAPH APPLIES.— This subparagraph shall apply to— "(I) an equity structure shift which is a reorganization described in section 368(a)(3)(D)(ii), or L "(II) any other equity structure shift (or transit action to which section 351 applies) which occurs as an integral part of a transaction involving a change to which subclause (I) applies. f;l.'krt.'pi This subparagraph shall not apply to any equity structure shift or transaction occurring after December 31, •i- ' 1988. "(G) TITLE i i OR SIMILAR CASE.—For purposes of this
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paragraph, the term 'title 11 or similar case' has the meaning given such term by section 368(a)(3)(A). "(H) ELECTION NOT TO HAVE PARAGRAPH APPLY.—A

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loss corporation may elect, subject to such terms and conditions as the Secretary may prescribe, not to have the provisions of this paragraph apply. "(6) SPECIAL RULE FOB INSOLVENCY TRANSACTIONS.—If paragraph (5) does not apply to any reorganization described in

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