Page:United States Statutes at Large Volume 65.djvu/582

 548 Arue,p.i9i.

26u.*8 c""437(c). 64 Stat. 1161. 26 U.S.C. 5439(b).

Ante, p. 646.

PUBLIC LAW 183—OCT. 20, 1951

" (B) I n the case of a bank (as defined in section 104), the computation under subparagraph (A) shall be made by substituting for the amount computed under paragraph (2) (A) or (B) whichever of the following amounts is the lesser: "(i) An amount which bears the same ratio to the decrease in inadmissible assets as the sum of the equity Capital (as defined in section 437(c)) and the daily borrowed capital (as defined in section 439(b)), each determined as of the first day of the first taxable year ending after June 30, 1950, bears to the total assets as of the beginning of such day; "(ii) If paragraph (8)(B) is applicable, the amount computed under paragraph (8)(B) ( i i). "(10)

Anu,p.M7. 26^u**'s"^'. 5 435 (g)(2)." '

Ante, p. BOO.

[65 STAT.

EXCEPTIONS AND LIMITATIONS FOR THE PURPOSE OF PARA-

GRAPH (9).—For the purpose of paragraph (9)— " (A) The adjustment to the decrease in inadmissible assets required under subparagraph (B) of paragraph (2) shall not be greater than 25 per centum of the excess of the net capital reduction computed under the first sentence of paragraph (2) (and computed without regard to the percentage limitations in paragraph (4)(C) and (E)) over the net capital reduction computed under such sentence without regard to paragraph (4)(C) and (E). " (B) The amount determined under paragraph (9) shall not be greater than the excess of the increase in operating assets for the taxable year over the net capital addition (determined without regard to paragraph (9) and determined without regard to the limitation to 75 per centum provided in paragraph (3)(C) and paragraph (4)(C) and (E)). For the purpose of the preceding sentence, the increase in operating assets for the taxable year shall be determined in the same manner as the increase in inadmissible assets for the taxable year is determined under paragraph (5), For the purpose of such determination, the term 'operating assets' means— " (i) property used in the taxpayer's trade or business within the meaning of section 117(j)(1) except that such property need not be held more than six months, and "(ii) stock in trade or other property of a kind which would properly be includible in the inventory of the taxpayer if owned at the close of the taxable year, and property held by the taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or business, except any such assets which constitute inadmissible assets, stock, securities, or intangible property (such intangible property not being limited to the property described in section

64 Stat. 1163. 26 U.S.C. J 441 (i).

Vii 7 - \ \ ^^^K^))'

'^

Ante,p.m.

" (C) The amount determmed under paragraph (9) shall be subject to reduction to the extent that the Secretary determines that the increase in operating assets is a result, directly or indirectly, of an increase in indebtedness of the taxpayer (other than indebtedness which constitutes borrowed capital)."

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