Page:United States Statutes at Large Volume 79.djvu/1003

 79 STAT. ]

PUBLIC LAW 89-243-OCT. 9, 1965

(B) The amendment made by subparagraph (A) — (i) insofar as it relates to elections made under section 4920(a)(5), shall apply to dispositions made after June 28, 1965; and (ii) insofar as it relates to elections made under section 4920(a) (5A), shall apply to dispositions made after February 10, 1965. (3) Section 4912(b)(2)(B) is amended— (A) by striking out "section 4920(a)(5)(E) " and inserting in lieu thereof "paragraph (5) or (5A) of section 4920 (a) "; and (B) by inserting "(including, in the case of a transfer to a branch office described in section 4920(a) (5A), a transfer made for consideration)" after "money or other property" where it first appears. (n) FOREIGN STOCK ISSUES TREATED AS DOMESTIC.—Section 4920 is amended— (1) by striking out paragraph (8) of subsection (a), (2) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively, and (3) by inserting after subsection (a) the following new subsection:

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" (b) FOREIGN STOCK ISSUES TREATED AS DOMESTIC.—

"(1) IN GENERAL.—For purposes of this chapter, a foreign corporation (other than a company registered under the Investment Company Act of 1940) shall not be considered a foreign 15 USC so^a.'s i issuer with respect to any class of its stock if— " (A) as of the corporation's latest record date before July 19, 1963, more than 65 percent of such class of stock was held of record by United States persons, or " (B) the class of stock had its principal market during the calendar year 1962 on one or more national securities exchanges registered with the Securities and Exchange Commission, and, as of the corporation's latest record date before July 19, 1963, more than 50 percent of such class of stock was held of record by United States persons. "(2) CLASS OF STOCK DEFINED.—For purposes of this subsection, the term 'class of stock' means all shares of stock of a corporation issued and outstanding as of the corporation's latest record date before July 19, 1963, which are identical with respect to the rights and interest such shares represent in the control, profits, and assets of the corporation. Such term also includes additional shares possessing rights and interests identical with the rights and interests of shares described in the preceding sentence if such additional shares shall have been— " (A) issued on or before November 10, 1964; " (B) issued after November 10, 1964, pursuant to a written commitment made by such corporation on or before such date; " (C) issued after November 10, 1964, to a shareholder with respect to or in exchange solely for shares described in this paragraph; or " (D) issued after November 10, 1964, and if— " (i) such corporation was actively engaged in a trade or business on July 19, 1963;

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