Page:United States Statutes at Large Volume 52.djvu/979

 PUBLIC LAWS-CH. 575-JUNE 22, 1938 Certain income, etc., not deemed to have accrued by rea- son of modification or cancelation of indebt- edness. Proviso. If purpose of plan evasion of tax. Taxes found owing within one year of fil- ing petition, assess - ment and payment. Proviso. Plan for settlement, etc. When chapter takes effect. 47 Stat. 1467 . 11 U. . C. §C201, 20'2; Supp. 11, 202. Compositions and extensions. Chapter XIV- Maritime Com- mission Liens. Maritime Commis- sion. Appointment as re- ceiver in bankruptcy proceedings if to the advantage of parties in interest, etc. 49 Stat. 1985. 46 U. S. C., Supp. HI, j 1101. "Any order fixing the time for confirming an arrangement which affects claims of the United States shall include a notice to the Secre- tary of the Treasury of not less than ten days. "SEC. 679. No income or profit, taxable under any law of the United States or of any State now in force or which may hereafter be enacted, shall, in respect to the adjustment of the indebtedness of a debtor in a proceeding under this chapter, be deemed to have accrued to or to have been realized by a debtor by reason of a modification in or cancelation in whole or in part of any such indebtedness in a proceeding under this chapter: Provided, however, That if it shall be made to appear that the plan had for one of its principal purposes the evasion of any income tax, the exemption provided by this section shall be disallowed. "SEC. 680. Any provision in this chapter to the contrary not- withstanding, all taxes which may be found to be owing to the United States or any State from a debtor within one year from the date of the filing of a petition under this chapter, and have not been assessed prior to the date of the confirmation of a plan under this chapter, and all taxes which may become owing to the United States or any State from a debtor shall be assessed against, may be col- lected from, and shall be paid by the debtor: Provided, however, That the United States or any State may in writing accept the pro- visions of any plan dealing with the assumption, settlement, or payment of any such tax. "ARTICLE XIII-WHREN CHAPTER TAKES EFFECT "SEC. 686 . (1) On and after the effective date of this amendatory Act, this chapter shall apply to debtors and their creditors, whether their rights, claims, and interests of any nature whatsoever have been acquired or created before or after such date; "(2) a petition may be filed under this chapter in a proceeding in bankruptcy which is pending on the effective date of this amendatory Act: "(3) the provisions of sections 73 and 74, as amended, of the Act entitled 'An Act to establish a uniform system of bankruptcy throughout the United States', approved July 1, 1898, shall continue in full force and effect with respect to proceedings pending under those sections upon the effective date of this amendatory Act; "(4) section 679 of this Act shall apply to compositions and exten- sions confirmed under section 74 before the effective date of this amendatory Act and to compositions and extenscopoions which ma be confirmed under section 74 on and after such effective date; and " (5) confirmation of a plan under this chapter shall not be refused because of a discharge granted or a composition confirmed prior to the effective date of this amendatory Act." "CHAPTER XIV-MARITIME COMMISSION LIENS "SEC. 701. Notwithstanding any provision of law, in any proceed- ing in a bankruptcy, equity, or admiralty court of the United States in which a receiver or trustee may be appointed for any corporation engaged in the operation of one or more vessels of United States registry between the United States and any foreign country, upon which the United States holds mortgages, the court upon finding that it will inure to the advantage of the estate and the parties in interest and that it will tend to further the purposes of the Merchant Marine Act, 1936, may constitute and appoint the United States Maritime Commission as sole trustee or receiver, subject to the directions and orders of the court, and in any such proceeding the appointment of 938 [52 STAT.

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