Page:United States Statutes at Large Volume 79.djvu/1001

 79 STAT. ]

PUBLIC LAW 89-243-OCT. 9, 1965

961

subsection), the President may take into account whether such foreign country is according privileges to United States persons in conformity with treaties of friendship, commerce, and navigation between the United States and such foreign country." (1) CREDIT OR REFUND FOR SALES OF STOCK BY DEALERS TO FOREIGN PERSONS.—

(1) Section 4919(a)(3) is amended to read as follows: "(3) CERTAIN STOCK.—Consist of stock— " (A) acquired by a dealer in the ordinary course of his business and sold by him on the day of purchase or on either of the two succeeding business days to— "(i) persons other than United States persons, or "(ii) another dealer who resells it on the same or the next business day to persons other than United States persons; or " (B) acquired by a dealer in the ordinary course of his business to cover short sales made by him on the day of purchase or on either of the two preceding business days to— "(i) persons other than United States persons, or "(ii) another dealer who resold it on the same or the next business day to persons other than United States persons." (2) Section 4919(b)(3) is amended by striking out the heading and inserting in lieu thereof "CERTAIN SALES BY DEALERS.—". (3) Section 4919(b)(3)(B) is amended— (A) by striking out "with respect to a debt obligation sold in a transaction" and inserting in lieu thereof "with respect to a sale"; (B) by striking out "a debt obligation" each place it appears in clauses (i) and (ii) and in the matter which follows and inserting in lieu thereof "stock or a debt obligation"; (C) by striking out "such debt obligation" each place it appears in the matter which follows clause (ii) and inserting in lieu thereof "such stock or debt obligation"; and (D) by inserting "or (a)(3) " after "subsection (a)(2) " each place it appears. (m)

26U?C49?9

COMMERCIAL FINANCING.—

(1) Section 4920(a) is amended by inserting after paragraph (5) the following new paragraph:

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"(5A) CERTAIN COMMERCIAL FINANCING BRANCHES NOT TREATED AS DOMESTICORPORATIONS.—The term 'domestic corporation'

does not include a branch office of such a corporation located outside the United States if— " (A) such corporation is primarily engaged in the trade or business of acquiring debt obligations (i) arising out of the sale of tangible personal property produced, manufactured, or assembled by one or more includible corporations in an affiliated group (determined under section 4 8 (c)(3)(C) except that clause (i) of such section shall not apply) of which such acquiring corporation is a member and (ii) arising out of the sale of tangible personal property received as part or all of the consideration in sales of tangible personal property described in clause (i); " (B) such office is primarily engaged in the trade or busi-

H^l^^'^^'^• 26 USC 48.

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