Page:United States Statutes at Large Volume 79.djvu/1005

 79 STAT. ]

PUBLIC LAW 89-243-OCT. 9, 1965

965

for the taxable year. Under regulations prescribed by the Secretary or his delegate, the preceding sentence shall not apply with respect to any amount attributable to that part of the tax so paid or accrued which is attributable to an amount for which a deduction has been claimed for the taxable year or a preceding taxable year under section 171 (relating to amortization of bond premium)." (3) The amendments made by this subsection shall apply to taxable years ending after September 2, 1964. (q) EFFECTIVE DATE.—Except as otherwise specifically provided in this section and in the amendments made by this section, such amendments shall apply with respect to acquisitions of stock and debt obligations made after February 10, 1965. Executive Order 11198, issued February 10, 1965, to the extent it is inconsistent with the amendments made by this section, shall be deemed modified by such amendments. SEC. 5. PREEXISTING COMMITMENTS. (a)

CERTAIN

COMMITMENTS EXISTING ON OR BEFORE J U L Y

68A Stat. 6 1. 26 USC 171.

30 F, R. 1929.

18,

1963.—Section 2(c)(2)(B) of the Interest Equalization Tax Act is ^s stau 84L amended to read as follows: note. " (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) m similar transactions, subject only to the execution of formal documents evidencing the acquisition and to customary closing conditions, and the acquiring United States person (or persons) — ''(i) 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 of 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, or " (ii) had received from the foreign person from whom the acquisition was made a memorandum of terms, draft purchase contract, or other document setting forth, or referring to a document sent by the acquiring United States person (or persons) which set forth, the principal terms of such acquisition;". (b)

CERTAIN DEBT OBLIGATIONS OF FORMER LESS DEVELOPED COUN-

TRIES.—The tax imposed by section 4911 of the Internal Revenue Code of 1954 shall not apply to the acquisition by a United States person of a debt obligation issued by the government of a foreign country which has been designated as an economically less developed country under an Executive order of the President in effect for purposes of the tax imposed by section 4911, but with respect to which such designation has been terminated before the enactment of this Act, if, prior to such acquisition, the Secretary of State has certified to the Secretary of the Treasury or his delegate that— (1) the government of such foreign country had, on or before April 6, 1965, communicated to the United States Department of State its intention to issue such debt obligation;

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