Page:United States Statutes at Large Volume 56 Part 1.djvu/867

 56 STAT.] 77TH CONG. , 2D SESS.-CH. 619-OCT. 21, 1942 corporation, as defined in section 77m of the National Bank- ruptcy Act, as amended, is transferred, after December 31, 1939, in pursuance of an order of the court having jurisdiction of such corporation- "(A) in a receivership proceeding, or "(B) in a proceeding under section 77 of the National Bankruptcy Act, as amended, to a railroad corporation, as defined in section 77m of the National Bankruptcy Act, as amended, organized or made use of to effectuate a plan of reorganization approved by the court in such proceeding. The term 'reorganization', as used in this paragraph, shall not be limited by the definition of such term in subsection (g)." (b) BASIS OF PROPERTY ACQUIRED BY CERTAIN RAILROAD CORPORA- TIONS. -Section 113 (a) (relating to the basis of the property) is amended by inserting at the end thereof the following new paragraph: "(20) PROPERTY ACQUIRED BY RAILROAD CORPORATION. -- If the property of a railroad corporation, as defined in section 77m of the National Bankruptcy Act, as amended, was acquired after December 31, 1939, in pursuance of an order of the court hav- ing jurisdiction of such corporation- "(A) in a receivership proceeding, or "(B) in a proceeding under section 77 of the National Bankruptcy Act, as amended, and the acquiring corporation is a railroad corporation, as defined in section 77m of the National Bankruptcy Act, as amended, organized or made use of to effectuate a plan or reorganization approved by the court in such proceeding, the basis shall be the same as it would be in the hands of the rail- road corporation whose property was so acquired. The term 'reorganization', as used in this paragraph, shall not be limited by the definition of such term in section 112 (g)." (c) BASIS OF PROPERTY ACQUIRED PURSUANT TO RAILROAD REOROANI- zATION UNDER SECTION 77B OF THE NATIONAL BANKRUPTCY ACT, AS AMENDED. -Section 113 (a) (relating to the basis of the property) is amended by inserting at the end thereof the following new paragraph: "(21) PROPERTY ACQUIRED BY STREET, SUBURBAN, OR INTERURBAN ELEcTRIC RAILWAY CORPORATION.- If the property of any street, suburban, or interurban electric railway corporation engaged as a common carrier in the transportation of persons or property in interstate commerce was acquired after December 31, 1934, in pursuance of an order of the court having jurisdiction of such corporation in a proceeding under section 77B of the National Bankruptcy Act, as amended, and the acquiring corporation is a street, suburban, or interurban electric railway engaged as a common carrier in the transportation of persons or property in interstate commerce, organized or made use of to effectuate a plan of reorganization approved by the court in such proceeding, then, notwithstanding the provisions of section 270 of Chapter X of the National Bankruptcy Act, as amended, the basis, for any taxable year beginning after December 31, 1939, shall be the same as it would be in the hands of the corporation whose property was so acquired. The term 'reorganization', as used in this paragraph, shall not be limited by the definition of such term in section 112 (g)." 839 47 Stat. 1481. 11U.S.o.I205 (m). 47 Stat. 1474. 11U.8.C. 205. 53 Stat. 40 . 26 .S.C.§113(a); Supp. I, 113 (a). 47 Stat. 1481. 1U. S .C .§205(m). 47 Stat. 1474 . 11 U.. C. 205. 53 Stat. 40 . 26U. .C. 112(g). 48 Stat. 912. 11U.S.C.i207 note. Supra. 52 Stat. 904. 11 U.S. C. 670. 53 Stat. 40 . 26U.S. C . 112(g).

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