Page:United States Statutes at Large Volume 78.djvu/882

 840

PUBLIC LAW 88-563-SEPT. 2, 1964

[78 STAT.

a commercial bank of a debt obligation of a foreign obligor (if such obligation has a period remaining to maturity of 1 year or more and less than 3 years), a tax equal to a percentage of the actual value of the debt obligation measured by the period remaining to its maturity and determined in accordance with the following table: "If the period remaining to maturity is: At least 1 year, but less than l^/i years At least l^A years, but less than l i ^ years At least iy2 years, but less than 1% years At least 1% years, but less than 2^4 years At least 2^/4 years, but less than 2% years At least 2% years, but less than 3 years

Anil' ^' III'

The tax, as a percentage of actual value, i s: 1.05 percent 1.30 percent 1. 50 percent 1. 85 percent 2. 30 percent 2. 75 percent

For purposes of this title, the tax imposed under this subsection shall ^^ treated as imposed under section 4911, except that, for such purposes, the provisions of section 4918 shall not apply. "(d)

EXCLUSIONS.— " (1) EXPORT LOANS.—The provisions of subsection (b), and the

tax imposed under subsection (c), shall not apply with respect to the acquisition by a commercial bank of a debt obligation arising out of the sale of personal property or services (or both) if— " (A) not less than 85 percent of the amount of the loan is attributable to the sale of property manufactured, produced, grown, extracted, created, or developed in the United States, or to the performance of services by United States persons, or to both, and " (B) the extension of credit and the acquisition of the debt obligation related thereto are reasonably necessary to accomplish the sale of property or services out of which the debt obligation arises, and the terms of the debt obligation are not unreasonable in light of credit practices in the business in which the United States person selling such property or services is engaged. " (2) FOREIGN CURRENCY LOANS BY FOREIGN BRANCHES.—The

provisions of subsection (b), and the tax imposed under subsection (c), shall not apply to the acquisition by a commercial bank of a debt obligation of a foreign obligor payable in the currency of a foreign country if, under regulations prescribed by the Secretary or his delegate— " (A) such bank establishes and maintains, for each of its branches located outside the United States, a fund of assets with respect to deposits payable in foreign currency to customers (other than banks) of such branch, and " (B) such debt obligation is designated, to the extent permitted by this paragraph, as part of a fund of assets described in subparagraph (A) (but only after debt obligations of foreign obligors payaiDle in foreign currency having a period remaining to maturity of less than one year held by such bank have been designated as part of such a fund). A debt obligation may be designated as part of a fund of assets described in subparagraph (A) only to the extent that, immediately after such designation, the adjusted basis of all the assets held in such fund does not exceed 110 percent of the deposits payable in foreign currency to customers (other than banks) of the branch with respect to which such fund is maintained. "(3) PREEXISTING COMMITMENTS.—The provisions of subsection (b), and the tax imposed under subsection (c), shall not apply to the acquisition by a commercial bank of a debt obligation of a foreign obligor—

�