Page:United States Statutes at Large Volume 68A.djvu/358

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INTERNAL REVENUE CODE OP 1954 ^

companies thereof, or by one or more majority-owned subsidiary companies of such registered holding company. (d) SYSTEM G R O U P. — For purposes of this part, the term "system group" means one or more chains of corporations connected through stock ownership with a common parent corporation if— (1) at least 90 percent of each class of the stock (other than (A) stock which is preferred as to both dividends and assets, and (B) stock which is limited and preferred as to dividends but which is not preferred as to assets but only if the total value of such stock is less than 1 percent of the aggregate value of all classes of stock which are not preferred as to both dividends and assets) of each of the corporations (except the common parent corporation) is owned directly by one or more of the other corporations; and (2) the common parent corporation owns directly a t least 90 percent of each class of the stock (other than stock, which is preferred as to both dividends and assets) of at least one of the other corporations; and (3) each of the corporations is either a registered holding company or a majority-owned subsidiary company. (e) NoNEXEMPT PROPERTY.—For purposes of this part, the term "nonexempt property" means— (1) any consideration in the form of evidences of indebtedness owed by the transferor or a cancellation or assumption of debts or other liabilities of the transferor (including a continuance of encumbrances subject to which the property was transferred); (2) short-term obligations (including notes, drafts, bills of exchange, and bankers' acceptances) having a maturity at the time of issuance of not exceeding 24 months, exclusive of days of grace; (3) securities issued or guaranteed as to principal or interest by a government or subdivision thereof (including those issued by a corporation which is an instrumentality of a government or subdivision thereof); (4) stock or securities which were acquired from a registered holding company or an associate company of a registered holding company which acquired such stock or securities after February 28, 1938, unless such stock or securities (other than obligations des'cribed as nonexempt property in paragraph (1), (2), or (3)) were acquired in obedience to an order of the Securities and Exchange Commission or were acquired with the authorization or approval of the Securities and Exchange Commission under any section of the Public Utility Holding Company Act of 1935 (49 Stat. 820; 15 U.S.C. 79k (b)); (5) money, and the right to receive money not evidenced by a security other than an obligation described as nonexempt property in paragraph (2) or (3). (f) STOCK OR SECURITIES.—For purposes of this part, the term "stock or securities" means shares of stock in any corporation, certificates of stock or interest in any corporation, notes, bonds, debentures, and evidences of indebtedness (including any evidence of an interest in or right to subscribe to or purchase any of the foregoing).

§ 1083(c)

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