Page:United States Statutes at Large Volume 111 Part 1.djvu/1060

 Ill STAT. 1036 PUBLIC LAW 105-34—AUG. 5, 1997 "(A) IN GENERAL.— For purposes of section 857(b)(6)(C), if a real estate investment trust is treated as having sold secured property under paragraph (3)(A), the trust shall be treated as having held such property for at least 4 years if— "(i) the secured property is sold or otherwise disposed of pursuant to a case under title 11 of the United States Code, "(ii) the seller is under the jurisdiction of the court in such case, and "(iii) the disposition is required by the court or is pursuant to a plan approved by the court. " (B) EXCEPTION. —Subparagraph (A) shall not apply if— "(i) the secured property was acquired by the seller with the intent to evict or foreclose, or "(ii) the trust knew or had reason to know that default on the obligation described in paragraph (5)(A) would occur.", (b) CLARIFICATION OF DEFINITION OF SHARED APPRECIATION PROVISION.— Clause (ii) of section 856(j)(5)(A) is amended by inserting before the period "or appreciation in value as of any specified date". SEC. 1262. WHOLLY OWNED SUBSIDIARIES. Section 856(i)(2) (defining qualified REIT subsidiary) is amended by striking "at all times during the period such corporation was in existence". 26 USC 852 note. SEC. 1263. EFFECTIVE DATE. The amendments made by this part shall apply to taxable years beginning after the date of the enactment of this Act. Subtitle E—Provisions Relating to Regulated Investment Companies SEC. 1271. REPEAL OF 30-PERCENT GROSS INCOME LIMITATION. (a) GENERAL RULE. —Subsection (b) of section 851 (relating to limitations) is amended by striking paragraph (3), by adding "and" at the end of paragraph (2), and by redesignating paragraph (4) as paragraph (3). (b) TECHNICAL AMENDMENTS.— (1) The material following paragraph (3) of section 851(b) (as redesignated by subsection (a)) is amended— (A) by striking out "paragraphs (2) and (3)" and inserting "paragraph (2)", and (B) by striking out the last sentence thereof. (2) Subsection (c) of section 851 is amended by striking "subsection (b)(4)" each place it appears (including the heading) and inserting "subsection (b)(3)". (3) Subsection (d) of section 851 is amended by striking "subsections (b)(4)" and inserting "subsections (b)(3)". (4) Paragraph (1) of section 851(e) is amended by striking "subsection (b)(4)" and inserting "subsection (b)(3)". (5) Paragraph (4) of section 851(e) is amended by striking "subsections (b)(4)" and inserting "subsections (b)(3)".

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