Page:United States Statutes at Large Volume 102 Part 4.djvu/725

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3695

SEC. 6031. CERTAIN REPLEDGES PERMITTED.

26 USC 453A

(a) GENERAL RULE.—Section 453A(d) of the 1986 Code (relating to pledges, etc., of installment obligations) shall not apply to any pledge after December 17, 1987, of an installment obligation to secure any indebtedness if such indebtedness is incurred to refinance indebtedness which was outstanding on December 17, 1987, and which was secured on such date and all times thereafter before such refinancing by a pledge of such installment obligation. (b) LIMITATION.—Subsection (a) shall not apply to the extent that the principal amount of the indebtedness resulting from the refinancing exceeds the principal amount of the refinanced indebtedness immediately before the refinancing. (c) CERTAIN REFINANCINGS PERMITTED.—For purposes of subsec-

tion (a), if^ (1) a refinancing is attributable to the calling of indebtedness by the creditor, and (2) such refinancing is not with the creditor under the refinanced indebtedness or a person related to such creditor, such refinancing shall, to the extent the refinanced indebtedness qualifies under subsections (a) and (b), be treated as a continuation of such refinanced indebtedness. SEC. 6032. T R E A T M E N T OF INDIRECT HOLDINGS THROUGH TRUSTS UNDER SECTION 448 OF THE 1986 CODE.

(a) GENERAL RULE.—Paragraph (2) of section 448(d) of the 1986 Code (defining qualified personal service corporation) is amended by adding at the end thereof the following new sentence: "To the extent provided in regulations which shall be prescribed by the Secretary, indirect holdings through a trust shall be taken into account under subparagraph (B)." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1986.

26 USC 448 note.

SEC. 6033. DISASTER ASSISTANCE ACT PAYMENTS INCLUDED IN SPECIAL RULE FOR TAXABLE YEAR OF INCLUSION.

(a) DISASTER ASSISTANCE PAYMENTS.—The second sentence of section 451(d) of the 1986 Code (relating to special rule for crop insurance proceeds or disaster payments) is amended by inserting "or title II of the Disaster Assistance Act of 1988," after "the Agricultural Act of 1949, as amended,". (b) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply to payments received before, on, or after the date of enactment of this Act.

Subtitle C—Pensions and Employee BeneHts SEC. 6051. PROVISIONS RELATING TO BENEFITS UNDER DISCRIMINATORY PLANS. (a) PROVISIONS NOT TO APPLY TO CHURCH PLANS.—Section 89(i) of

the 1986 Code is amended by adding at the end thereof the following new paragraph: "(4) CHURCH PLANS.—The term 'statutory employee benefit plan' shall not include a plan maintained by a church for church employees. For purposes of this paragraph, the term 'church' has the meaning given such term by section

26 USC 451 note.

�