Page:United States Statutes at Large Volume 78.djvu/883

 78 STAT. ]

PUBLIC LAW 88-563-SEPT. 2, 1964

" (A) made pursuant to an obligation to acquire which on August 4, 1964 ^ " (i) was unconditional, or "(ii) was subject only to conditions contained in a formal contract under which partial performance had occurred; or " (B) as to which on or before August 4, 1964, the acquiring commercial bank (or, in a case where 2 or more commercial banks are making acquisitions as part of a single transaction, a majority in interest of such banks) had taken every action to signify approval of the acquisition under the procedures ordinarily employed by such bank (or banks) in similar transactions and had sent or deposited for delivery to the foreign person from whom the acquisition was made written evidence of such approval in the form of a document setting forth, or referring to a document sent by the foreign person from whom the acquisition was made which set forth, the principal terms of such acquisition. "(e) REGULATIONS.—The Secretary or his delegate shall prescribe such regulations (not inconsistent with the provisions of this section or of an Executive order issued under subsection (a)) as may be necessary to carry out the provisions of this section." (b) TECHNICAL AMENDMENT.—The table of chapters for subtitle D is amended by adding at the end thereof the following item: "Chapter 41. Interest equalization tax." (c) EFFECTIVE DATE.— (1) GENERAL RULE.—Except as provided by paragraphs (2),

(3), (4), (5), (6), and (7), the amendments made by this section shall apply with respect to acquisitions of stock and debt obligations made after July 18, 1963. (2) PREEXISTING COMMITMENTS.—Such amendments shall not apply to an acquisition— (A) made pursuant to an obligation to acquire which on July 18, 1963— (i) was unconditional, or (ii) was subject only to conditions contained in a formal contract under which partial performance had occurred; (B) as to which on or before July 18, 1963, the acquiring United States person (or, in a case where 2 or more United States persons are making acquisitions as part of a single transaction, a majority in interest of such persons) had taken every action to signify approval of the acquisition under the procedures ordinarily employed by such person (or persons) in similar transactions and had sent or deposited for delivery to the foreign person from whom the acquisition was made written evidence of such approval in the form of a commitment letter, memorandum or terms, draft purchase contract, or other document setting forth, or referring to a document sent by the foreign person from whom the acquisition was made which set forth, the principal terms of such acquisition, subject only to the execution of formal documents evidencing the acquisition and to customary closing conditions;

841

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