Page:United States Statutes at Large Volume 78.djvu/98

 56

68A Stat. 78 26 USC 265.

54 Stat. 789.

15 USC 80a-2.

26us^c 2V4"

PUBLIC LAW 88-272-FEB. 26, 1964

contract to which such plan relates was paid) is paid under such plan by means of indebtedness, " (2) if the total of the amounts paid or accrued by such person during such taxable year for which (without regard to this paragraph) no deduction would be allowable by reason of subsection (a)(3) does not exceed $100, "(3) if such amount was paid or accrued on indebtedness incurred because of an unforeseen substantial loss of income or unforeseen substantial increase in his financial obligations, or "(4) if such indebtedness was incurred in connection with his trade or business. For purposes of applying paragraph (1), if there is a substantial increase m the premmms on a contract, a new 7-year period described in such paragraph with respect to such contract shall commence on f he date the first such increased premium is paid." (c) Eri-TiCTiMi: DAnc.—The amendments made by this section shall apply with respect to amounts paid or accrued in taxable years beginning after December 31, 1963. SEC. 216. INTEREST ON INDEBTEDNESS INCURRED OR CONTINUED TO PURCHASE OR CARRY TAX-EXEMPT BONDS. (a) Ari'LicATiox W I T K RESPECT TO CERTAIN FrNANciAi. INSTITUTIONS.—Section 265 (relating to expenses and interest relating to taxexempt income) is amended by adding at the end of paragraph (2) the following new sentence: "In applying the preceding sentence to a financial institution (other than a bank) which is a face-amount certificate company registered under the Investment Company Act of 1040 (15 F.S.C. SOa-1 and following) and which is subject to the bankhig laws of the State in which such institution is incorporated, interest on face-amount certificates (as defined in section 2(a) (15) of such Act) issued by such institution, and interest on amounts received for the purchase of such certificates to be issued by such institution, shall not be considered as interest on indebtedness incurred or continued to puivhase or carry obligations the interest on which is wholly exempt from the taxes imposed by this subtitle, to the extent that the average amount of such obligations held by such institution during the taxable year (as detennined under regulations prescribed by the Secretary or his delegate) does not exceed 15 percent of the average of the total assets held by such institution duruig the taxable year (as so determined).*' (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to taxable years ending after the date of the enactment of this Act. SEC. 217. LIMITATION OF TRAVEL ALLOCATION REQUIREMENT TO FOREIGN TRAVEL. ^'^^ LIMITATION OF APPLICATION OF SECTION 274(C).—Section 274 ((•) (relating to traveling) is amended to read as follows: "(C)

26 USC 212. 26 USC 162.

[78 STAT.

CERTAIN FOREIGN TRAVEL.—

"(1) I N (iENEiLVL.—In the case of any individual who travels outside the United States away from home hi pursuit of a trade or business or in pursuit of an activity described in section 212, no deduction shall be allowed under section 102 or section 212 for that portion of the expenses of such travel otherwise allowable under such section which, under regulations prescribed by the Secretary or his delegate, is not allocable to such trade or Imsiness or to such activity-

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