Page:United States Statutes at Large Volume 78.djvu/856

 814

26 USC 361,

367

Post, p. 836.

PUBLIC LAW 88-563-SEPT. 2, 1964

[78 STAT.

from tax under subsection (b) of this section, or under section 4915, 4916, or 4917; "(6) any exchange to which section S61 applies (or would, but for section 367, apply), where the transferor corporation was a domestic corporation and was engaged in the active conduct of a trade or business, other than as a dealer in securities, immediately before the date on which the assets involved are transferred to the acquiring corporation; "(7) any exercise of a right to convert indebtedness, pursuant to its terms, into stock, if such indebtedness is treated as stock pursuant to section 4920(a)(2)(D); or "(8) the grant of a stock option or similar right to a United States person who is an individual, for any reason connected with his employment by a corporation, if such option or right (A) is granted by the employer corporation, or its parent or subsidiary corporation, to purchase stock of any such corporations, and (B) by its terms is not transferable by such United States person otherwise than by will or the laws of descent and distribution, and is exercisable, during his lifetime, only by him. "(b) EXCLUDED ACQUISITIONS.—The tax imposed by section 4911 shall not apply to the acquisition— "(1) THE UNITED STATES.—Of stock or debt obligations by an agency or wholly owned instrumentality of the United States. "(2)

C O M M E R C I A L BANK LOANS.—

" (A) Of debt obligations by a commercial bank in making loans in the ordinary course of its commercial banking business. ' " (B) Of stock or debt obligations by a commercial bank . ^ through foreclosure, where such stock or debt obligations - • were held as security for loans made in the ordinary course of its commercial banking business. "(3) ACQUISITIONS REQUIRED UNDER FOREIGN LAW.—Of stock or debt obligations by a United States person doing business in a foreign country to the extent that such acquisitions are reasonably necessary to satisfy minimum requirements relating to holdings of stock or debt obligations of foreign issuers or obligors imposed by the laws of such foreign country; except that if any of such requirements relate to the holding of insurance reserves, the exclusion otherwise allowable under this paragraph with respect to acquisitions made by such United States person during any calendar year shall be reduced by the maximum amount of the exclusion which could be allowed under subsection (e) with respect to acquisitions made by such person during that year, or by the amount of the insurance reserves which must be held in order to satisfy such requirements, whichever is less. "(4)

ACQUISITIONS I N LIEU OF PAYMENT OF FOREIGN TAX.—Of

stock or debt obligations by a United States person doing business in a foreign country, to the extent such acquisition is made, in conformity with the laws of such foreign country, as a substitute for the payment of tax to such foreign country. "(5)

ACQUISITIONS OF STOCK IN COOPERATIVE HOUSING CORPORA-

TIONS.—Of stock of a foreign corporation which entitles the holder, solely by reason of his ownership of such stock, to occupy for dwelling purposes a house, or an apartment in a building, owned or leased by such corporation. "(6) EXPORT CREDIT, ETC., TRANSACTIONS.—Of stock or debt obligations arising from the sale of property or services by United States persons, to the extent provided in subsection (c).

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