Page:United States Statutes at Large Volume 78.djvu/861

 78 STAT. ]

PUBLIC LAW 88-563-SEPT. 2, 1964

819

payable and for which insurance reserves are maintained by such company. " (3) DESIGNATION OF ASSETS.— " (A) I N I T I A L DESIGNATION.— " (i) REQUIREMENT OF INITIAL DESIGNATION.—An

insurance company desiring to establish a fund (or funds) of assets under paragraph (2) shall initially designate, as part or all of such fund (or funds), stock and debt obligations owned by it on July 18, 1963, as follows: First, stock of foreign issuers, and debt obligations of foreign obligors having a period remaining to maturity (on July 18, 1963) of 3 years or more and payable in foreign currency; second, if the company so elects, debt obligations of foreign obligors having a period remaining to maturity (on July 18, 1963) of less than 3 years and payable in foreign currency; and third, debt obligations of foreign obligors having a period remaining to maturity (on July 18, 1963) of 3 years or more and pavable solely in United States currency. The designation under the preceding sentence with respect to any fund shall be made, in the order set forth, to the extent that the adjusted basis (within the meaning of section 1011) of the designated stock and 26 USC ion. debt obligations was (on July 18, 1963) not in excess of 110 percent of the allowable reserve applicable to such fund (determined in accordance with paragraph (4) (B) ( i i)), and shall in no case include any stock or debt obligation described in section 4916(a). ^°®'' P- ^27. " ( i i) T I M E AND MANNER OF INITIAL DESIGNATION.—

Any initial designation which an insurance company is required to make under this subparagraph shall be made on or before the 30th day after the date of the enactment of this chapter (or at such later time as the Secretary or his delegate may by regulations prescribe) by the segregation on the books of such company of the stock or debt obligations (or both) designated, " (B) CURRENT DESIGNATIONS TO MAINTAIN FUND.—To the

extent permitted by subparagraph ^ E), stock of a foreign issuer or a debt obligation of a foreign obligor acquired by an insurance company after July 18, 1963, may be designated as part of a fund of assets described in paragraph (2), if such designation is made before the expiration of 30 days after the date of such acquisition and the company continues to own the stock or debt obligation until the time the designation is made; except that any such stock or debt obligation acquired before the initial designation of assets to the fund is actually made as provided in subparagraph (A) (ii) may be designated under this subparagraph at the time of such initial designation without regard to such 30-day and continued ownership requirements. " (C) ADDITIONAL DESIGNATIONS AFTER CLOSE OF YEAR.—If

the adjusted basis of the assets held in a fund of assets described in paragraph (2) at the close of a calendar year after 1963 is less than 110 percent of the allowable reserve applicable to such fund at the close of such year, the insurance company may, to the extent permitted by subparagraph (E), designate additional stock or debt obligations (or both) which were acquired during such calendar year as part of such fund, so long as the company still owns such stock or debt obliga-

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