Page:United States Statutes at Large Volume 79.djvu/1002

 962

78 Stat. 835. 26 USC 4920.

26 USC 4918.

PUBLIC LAW 89-243-OCT. 9, 1965

[79 STAT.

ness of acquiring debt obligations described in subparagraph (A) which are repayable exclusively in one or more currencies other than United States currency; " (C) such office was located outside the United States on February 10, 1965, and was regularly engaged in the trade or business of acquiring debt obligations described in subparagraph (B) for a period of not less than 12 consecutive months before February 10, 1965; " (D) such office maintains separate books and records reasonably reflecting the assets and liabilities properly attributable to such office; and " (E) there is in effect an election that such branch office be treated as a foreign corporation for purposes of this chapter. For purposes of this paragraph, a corporation or a branch office shall be treated as primarily engaged in the trade or business described in subparagraph (A) during the taxable year if at least 90 percent of the face amount of the debt obligations acquired by such corporation or branch office during such taxable year consists of debt obligations described in subparagraph (A) and if throughout such taxable year such corporation or branch office is exclusively engaged in the trade or business of acquiring debt obligations (whether or not described in subparagraph (A)) and servicing debt obligations arising out of sales of tangible personal property described in subparagraph (A). The election under this paragraph shall be made by such corporation in accordance with regulations prescribed by the Secretary or his delegate. A separate election may be made with respect to each branch office of such corporation except that, for purposes of this paragraph, all branch offices of such corporation located in a country shall be treated as a single branch office. Such election shall be effective as of February 10, 1965, and shall remain in effect until revoked in accordance with such regulations. If, at any time, such corporation ceases to meet the requirements of subparagraph (A), all elections made by such corporation under this paragraph shall be deemed revoked. If, at any time, a branch office (within the meaning of this paragraph) ceases to meet the requirements of subparagraph (B) or (D), the election with respect to such office shall thereupon be deemed revoked. When an election is revoked, a new election under subparagraph (E) may be made subject to such conditions and limitations as may be prescribed by the Secretary or his delegate." (2)(A) Section 4920(a)(5) is amended by adding at the end thereof the following new sentence: "A corporation or partnership making an election under this paragraph or paragraph (5A) with respect to a branch office located outside the U n i t ^ States shall not, at any time, execute a certificate of American ownership (within, the meaning of section 4918) either with respect to stock or a debt obligation of a foreign issuer or obligor held by such branch office at the time the election is made with respect to such branch office or with respect to stock or a debt obligation of a foreign issuer or obligor acquired by such branch office while the election with respect to such branch office is in effect."

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