Page:United States Statutes at Large Volume 70.djvu/195

 70 S T A T. ]

PUBLIC LAW 51 1 - M A Y 9, 1956

139

Board, and thereupon the Board shall certify and file in the court a transcript of the record made before the Board. Upon the filing of the transcript the court shall have jurisdiction to affirm, set aside, or modify the order of the Board and to require the Board to take such action with regard to the matter under review as the court deems proper. The findings of the Board as to the facts, if supported by substantial evidence, shall be conclusive. AMENDMENTS TO INTERNAL REVENUE CODE OF 1954

SEC. 10. (a) Subchapter O of chapter 1 of the Internal Revenue f 1^^1*0 lo^oiCode of 1954 is amended by adding at the end thereof the following io9i. new part: "PART VIII—DISTRIBUTIONS P U R S U A N T TO BANK HOLDING COMPANY ACT OF 1956 "Sec. 1101. Distributions pursuant to Bank Holding Company Act of 1956. "Sec. 1102. Special rules. "Sec. 1103. Definitions. "SEC. 1101. DISTRIBUTIONS PURSUANT TO BANK HOLDING COMPANY ACT OF 1956. "(a)

DISTRIBUTIONS OF CERTAIN NON-B.\NKING PROPERTY,— " (1) DISTRIBUTIONS or PROHIBITED PROPERTY.—If—

" (A) a qualified bank holding corporation distributes prohibited property (other than stock received in an exchange to which subsection (c)(2) applies)— "(i) to a shareholder (with respect to its stock held by such shareholder), without the surrender by such shareholder of stock in such corporation; or "(ii) to a shareholder, in exchange for its preferred stock; or "(iii) to a security holder, in exchange for its securities; and " (B) the Board has, before the distribution, certified that the distribution of such prohibited property is necessary or appropriate to effectuate section 4 of the Bank Holding Company Act of 1956, then no gain to the shareholder or security holder from the receipt of such property shall be recognized. " (2) DISTRIBUTIONS OF STOCK AND SECURITIES RECEIVED I N AN EXCHANGE TO WHICH S U B S E C T I O N (C)(2) APPLIES. I f

" (A) a qualified bank holding corporation distributes— " (i) common stock received in an exchange to which subsection (c)(2) applies to a shareholder (with respect to its stock held by such shareholder), without the surrender by such shareholder of stock in such corporation; or "(ii) common stock received in an exchange to which subsection (c)(2) applies to a shareholder, in exchange for its common stock; or "(iii) preferred stock or common stock received in an exchange to which subsection (c)(2) applies to a shareholder, in exchange for its preferred stock; or "(iv) securities or preferred or common stock received in an exchange to which subsection (c)(2) applies to a security holder, in exchange for its securities; and " (B) any preferred stock received has substantially the same terms as the preferred stock exchanged, and any securi-

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