Page:United States Statutes at Large Volume 102 Part 4.djvu/415

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3385

options (determined without regard to this subsection) are exercisable for the 1st time by any individual during any calendar year (under all plans of the individual's employer corporation and its parent and subsidiary corporations) exceeds $100,000, such options shall be treated as options which are not incentive stock options. "(2) ORDERING RULE.—Paragraph (1) shall be applied by taking options into account in the order in which they were granted. "(3) DETERMINATION OF FAIR MARKET VALUE.—For purposes of

paragraph (1), the fair market value of any stock shall be determined as of the time the option with respect to such stock is granted." (B) Subsection (b) of section 422A of the 1986 Code is amended by adding "and" at the end of paragraph (5), by striking out "; and" at the end of paragraph (6) and inserting in lieu thereof a period, and by striking out paragraph (7). (C) Paragraph (1) of section 422A(c) of the 1986 Code is amended by striking out "paragraph (7) of subsection (b)" and inserting in lieu thereof "subsection (d)". SEC 1004. AMENDMENTS RELATED TO TITLE IV OF THE REFORM ACT. Agriculture and

(a) AMENDMENTS RELATED TO SECTION 405 OF THE REFORM ACT.— commodMes. (1) Paragraph (1) of section 108(a) of the 1986 Code is amended by striking out "or" at the end of subparagraph (A), by striking out the period at the end of subparagraph (B) and inserting in lieu thereof ", or" and by adding at the end thereof the following new subparagraph: "(C) the indebtedness discharged is qualified farm indebtedness." (2) Paragraph (2) of section 108(a) of the 1986 Code is amended to read as follows: "(2) COORDINATION OF EXCLUSIONS.— "(A) TITLE i i EXCLUSION TAKES PRECEDENCE.—Subpara-

graphs (B) and (C) of paragraph (1) shall not apply to a discharge which occurs in a title 11 case. "(B) INSOLVENCY

EXCLUSION TAKES PRECEDENCE OVER

QUALIFiED FARM EXCLUSION.—Subparagraph (C) of paragraph (1) shall not apply to a discharge to the extent the taxpayer is insolvent." (3) Subsection O> of section 108 of the 1986 Code is amended— t) (A) by striking out "subparagraph (A) or (B)" in paragraph (1) and inserting in lieu thereof "subparagraph (A), (B), or (C)", and (B) by striking out " I N TITLE 11 CASE OR INSOLVENCY" in

the subsection heading. (4) Subsection (g) of section 108 of the 1986 Code is amended to read as follows: "(g) SPECIAL RULES FOR DISCHARGE OF QUALIFIED FARM INDEBTEDNESS.— "(1) DISCHARGE MUST BE BY QUALIFIED PERSON.—

"(A) IN GENERAL.—Subparagraph (C) of subsection (a)(D shall apply only if the discharge is by a qualified person. "(B) QUALIFIED PERSON.—For purposes of subparagraph (A), the term 'qualified person' has the meaning given to such term by section 46(c)(8)(D)(iv); except that such term

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