Page:United States Statutes at Large Volume 79.djvu/998

 958

PUBLIC LAW 89-243-OCT. 9, 1965

[79 STAT.

"(2) LIMITATIONS.—Paragraph (1) shall apply to the acquisition of a debt obligation only if— " (A) in the case of the sale of property referred to in paragraph (1)(A) — " (i) the seller is a United States person, and "(ii) at least 25 percent of the purchase price of the property sold is, at the time of such sale, paid in United States currency to such United States person by the foreign obligor from funds not obtained from United States persons for the purpose of purchasing such property; or " (B) in the case of the construction of improvements referred to in paragraph (1)(B) — " (i) at the time any proceeds of the loan out of which such debt obligation arises are advanced, an amount equal to at least one-third of the amount of such advance, plus one-third of the amount of any previous advances of such proceeds, has been expended for such construction by the foreign obligor in United States currency from funds not obtained from United States persons for the purpose of financing such construction, and "(ii) not less than 85 percent of the cost of such construction attributable to property or services is attributable to property grown, extracted, manufactured, or produced in the United States, or to services performed by United States persons, or to both. " (3) RELATED PERSONAL PROPERTY.—For purposes of paragraph

o! fro^A' fr^h 26 USC 4914.

(1)(A), the term 'related personal property' means personal property which is sold in connection with the sale of real property for use in the operation of such real property." (2) Section 4914(b) (11) is amended to read as follows: t^/;^\*

\ / \ /

(11) ACQUISITIONS OF CERTAIN DEBT OBLIGATIONS SECURED BY REAL PROPERTY IN THE UNITED STATES.—Of debt obligations secured

68Astat.^42. 26 USC 151.

by real property in the United States, to the extent provided in subsection (h). " (d) STUDENT LOANS.—Section 4914(b) is amended by adding at the end thereof the following new paragraph: "(13) STUDENT LOANS.—Of debt obligations which arise out of loans to a foreign obligor registered as a full-time student at an cducational institution (as defined in section 151(e)(4)) in the United States, to the extent that the acquisition by the acquiring person of such debt obligations with a period remaining to maturity of 1 year or more from such obligor in any calendar year does not exceed $2,500." (e) TANGIBLE PROPERTY HELD FOR PERSONAL USE.—Section 4914(b)

is amended by adding at the end thereof (after the new paragraph added by subsection (d) of this section) the following new paragraph: "(14) TANGIBLE PROPERTY HELD FOR PERSONAL USE.—Of debt obligations arising out of the sale of tangible property located outside the United States which was held for his personal use by the person acquiring such obligation." (f) CERTAIN FOREIGN BRANCHES ENGAGED I N THE COMMERCIAL BANKING BUSINESS W H I C H ARE MEMBERS OF FOREIGN STOCK EXCHANGES.—

(1) Section 4914(b)(2) is amended by adding at the end thereof (after and below subparagraph (B)) the following new sentence: "Stock or debt obligations acquired by a foreign branch of a corporation, in connection with its banking business, shall be

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