Page:United States Statutes at Large Volume 79.djvu/999

 79 STAT. ]

PUBLIC LAW 89-243-OCT. 9, 1965

considered debt obligations described in subparagraph (A) of the preceding sentence if— " (i) such branch is engaged in the commercial banking business and is also a member of a foreign stock exchange all the members of which on June 29, 1965, were banks, "(ii) on July 18, 1963, such branch was so engaged and was such a member, "(iii) such stock or debt obligations would not (but for this sentence) be excludable under the preceding sentence, and "(iv) at the time of such acquisition, such branch does not hold stock and debt obligations described in clause (iii) which have an adjusted basis in excess of 3 percent of the deposits of the customers (other than deposits of United States persons engaged in the commercial banking business and members of an affiliated group (determined under section 4 8 (c)(3)(C)) of which such a United States person is a member) of such branch payable in the currency of the country in which such branch is located."" (2) Section 4914(j)(2) is amended by adding at the end thereof the following new sentence: "For purposes of this chapter, if, after July 18, 1963, a United States person sells or otherwise disposes of stock or a debt obligation to the acquisition of which the last sentence of subsection (b)(2) applied, such person shall not, with respect to that stock or debt obligation, be considered a United States person." (3) The amendments made by this subsection shall apply to acquisitions made after July 18, 1963. • (g)

CERTAIN CURRENT DESIGNATIONS BY INSURANCE COMPANIES.—

Section 4914(e)(3)(B) is amended to read as follows: "(B)

CURRENT DESIGNATIONS TO MAINTAIN FUND.—

"(i) IN GENERAL.—To the extent permitted by subparagraph (E), stock of a foreign issuer or a debt obligation of a foreign obligor acquired by an insurance company after July 18, 1963, may be designated as part of a fund of assets described in paragraph (2), if such designation is made before the expiration of 30 days after the date of such acquisition and the company continues to own the stock or debt obligation until the time the designation is made; except that any such stock or debt obligation acquired before the initial d e s i ^ a t i o n of assets to the fund is actually made as provided in subparagraph (A) (ii) may be designated under this clause at the time of such initial designation without regard to such 30-day and continued ownership requirements. "(ii) CERTAIN DEBT OBLIGATIONS HAVING MATURITY OF LESS THAN 3 YEARS.—^A debt obligation having a period

remaining to maturity (on the date of acquisition) of at least 1 year but less than 3 years, which is acquired during the period beginning February 11, 1965, and ending on the date of the enactment of the Interest Equalization Tax Extension Act of 1965, may be designated as part of a fund of assets described in paragraph (2) on or before the 30th day after the date of such enactment (or at such later time as the Secretary or his delegate may by regulations prescribe) without regard to the 30-day and continued ownership requirements provided in clause (i).'*

959

^^^gc^T" 26 USC 49M.

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