Page:United States Statutes at Large Volume 100 Part 3.djvu/571

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2379

(A) Paragraph (1) of section 593(b) is amended by striking out "section 166(c)" and inserting in lieu thereof "subsection (a)". (B) Subparagraph (B) of section 593(b)(1) is amended— (i) by striking out "paragraph (2), (3), or (4), whichever amount is the largest" and inserting in lieu thereof "paragraph (2) or (3), whichever is the larger", and (ii) by striking out "paragraph (4)" in clause (i) and inserting in lieu thereof "paragraph (3)". (B) Subparagraph (D) of section 593(b)(2) (as redesignated by subsection (b)(2)) is amended by striking out "the applicable percentage (determined under subparagraphs (A) and (B))" and inserting in lieu thereof "8 percent". (C) Subparagraph (B) of section 593(e)(1) is amended by striking out "subsection (b)(4)" and inserting in lieu thereof "subsection (b)(3)". (3) BONDS, ETC., LOSSES AND GAINS OF FINANCIAL INSTITUTIONS.—

(A) Paragraph (1) of section 582(c) (relating to bonds, etc., losses and gains of financial institutions) is amended by striking out "a financial institution to which section 585, 586, or 593 applies" and inserting in lieu thereof "a financial institution referred to in paragraph (5)". (B) Subsection (c) of section 582 is amended by adding at the end thereof the following new paragraph: "(5) FINANCIAL APPLIES.—

INSTITUTIONS TO WHICH

PARAGRAPH

(i)

"(A) IN GENERAL.—For purposes of paragraph (1), the financial institutions referred to in this paragraph are— "(i) any bank (and any corporation which would be a bank except for the fact it is a foreign corporation), "(ii) any financial institution referred to in section 591, "(iii) any small business investment company operating under the Small Business Investment Act of 1958, and "(iv) any business development corporation. "(B) BUSINESS DEVELOPMENT CORPORATION.—For purposes

of subparagraph (A), the term 'business development corporation' means a corporation which was created by or pursuant to an act of a State legislature for purposes of promoting, maintaining, and assisting the economy and industry within such State on a regional or statewide basis by making loans to be used in trades and businesses which would generally not be made by banks within such region or State in the ordinary course of their business (except on the basis of a partial participation), and which is operated primarily for such purposes. "(C) LIMITATIONS ON FOREIGN BANKS.—In the case of a foreign corporation referred to in subparagraph (A)(i), paragraph (1) shall only apply to gains and losses which are effectively connected with the conduct of a banking business in the United States." (4) OTHER CONFORMING AMENDMENTS.—

(A) Subsection (g) of section 166 is amended by striking out paragraphs (3) and (4).

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