Page:United States Statutes at Large Volume 102 Part 4.djvu/521

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3491

"(A) is (or is part of a series of loans) used to refinance a loan described-in subparagraph (A) or (B) of paragraph (1), and "(B) meets the requirements of paragraphs (2) and (3)." (B) Subparagraph (B) of section 133(b)(3) of the 1986 Code is amended to read as follows: "(B) repayment terms providing for more rapid repayment of principal or interest on such loan, but only if allocations under the plan attributable to such repayment do not discriminate in favor of highly compensated employees (within the meaning of section 414(q)).' (3) Section 404(k) of the 1986 Code is amended— (A) by inserting "(whether or not allocated to participants)" after "employer securities" in paragraph (2)(C), and (B) by adding at the end thereof the following new sentence: Paragraph (2)(C) shall not apply to dividends from employer securities which are allocated to any participant unless the plan provides that employer securities with a fair market value not less than the amount of such dividends are allocated to such participant for the year which (but for paragraph (2)(C)) such dividends would have been allocated to such participant." (4) Subparagraph (C) of section 852(b)(5) of the 1986 Code (relating to interest on certain loans used to acquire employer securities) is amended by striking out "paragraph" and inserting in lieu thereof "section". (5)(A) The amendments made by parcigraphs (1) and (2) shall 26 USC 133 note, apply to— (i) any loan used to acquire employer securities after July 18, 1984, and (ii) loans made after July 18, 1984, which were used (or were part of a series of loans used) to refinance any loan which— (I) was used to acquire employer securities after May 23, 1984 (July 18, 1984, in the case of a loan described in section 133(b)(3)(B) of the Internal Revenue Code of 1986), and (II) met the requirements of section 133 (other than subsection (b)(2) thereof) of such (Dode as in effect as of the later of the date on which the loan was made, or July 19, 1984. In no event shall such amendments apply to any loan described in section 133(b)(l)(B) of such Code which is made before October 22, 1986 (or loan used, or part of a series of loans used, to refinance such a loan). (B) Subparagraph (B) of section 1173(c)(2) of the Reform Act is 26 USC 133 note. amended to read as follows: "(B) Section 133(b)(l)(A) of the Internal Revenue Code of 1986, as amended by subsection (b)(2), shall apply to any loan used (or part of a series of loans used) to refinance a loan which— "(i) was used to acquire employer securities after May 23, 1984, and "(ii) met the requirements of section 133 of the Internal Revenue Code of 1986 as in effect as of the later of— "(I) the date on which the loan was made, or

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