Page:United States Statutes at Large Volume 80 Part 1.djvu/1551

 80

STAT.]

PUBLIC LAW 89-800-NOV. 8, 1966

States retirement and savings bonds shall be in such forms, shall be offered in such amounts, subject to the limitations imposed by section 21 of this Act, and shall be issued in such manner and subject to such terms and conditions consistent with subsections (b), (c), and (d) of this section, including any restrictions on their transfer, as the Secretary of the Treasury may from time to time prescribe. " (b)(1) Retirement and savings bonds shall be issued only on a discount basis, and shall mature not less than ten nor more than thirty years from the date as of which issued, as the terms thereof may provide. Such bonds shall be sold at such price or prices and shall be redeemable before maturity upon such terms and conditions as the Secretary of the Treasury may prescribe, except that the issue price of such bonds, and the terms upon which they may be redeemed at maturity, shall be such as to afford an investment yield of not more than 5 per centum per annum, compounded semiannually. The denominations of such bonds shall be such as the Secretary of the Treasury may from lime to time determine and shall be expressed in terms of their maturity values. The Secretary of the Treasury is authorized by regulations to fix the maximum amount of such bonds issued in any one year that may be held by any one person at any one time, except that such maximum amount shall not be less than $3,000. " (2^ The Secretary of the Treasury, with the approval of the President, IS authorized to provide by regulations that owners of retirement and savings bonds may, at their option, retain the bonds after maturity and continue to earn interest upon them at rates which are consistent with the late of investment yield afforded by retirement and savings bonds. "(c) For purposes of taxation, any increment in value represented by the difference between the price paid and the redemption value received (whether at, before, or after maturity) for savings and retirement bonds shall be considered as interest. Such bonds shall not bear the circulation privilege. " (d) The provisions of subsections (c), (e), (g), (h), and (i) of section 22 shall, to the extent not inconsistent with the provisions of this section, apply with respect to retirement and savings bonds issued under this section." SEC. 6. (a) Section 501(c)(6) of the Internal Revenue Code of 1954 (relating to exemption of business leagues, boards of trade, etc.) is amended by striking out "or boards of trade" and inserting in lieu thereof "boards of trade, or professional football leagues (whether or not administering a pension fund for football players)". (b)(1) Section 1 of the Act of September 30, 1961 (75 Stat. 732; 15 U.S.C. 1291), is amended by adding at the end thereof: " I n addition, such laws shall not apply to a joint agreement by which the member clubs of two or more professional football leagues, which are exempt from income tax under section 501(c)(6) of the Internal Revenue Code of 1954, combine their operations in expanded single league so exempt from income tax, if such agreement increases rather than decreases the number of professional football clubs so operating, and the provisions of which are directly relevant thereto." (2) Section 2 of such Act is amended by striking out "described in section 1" and inserting in lieu thereof "described in the first sentence in section 1". (3) Section 3 of such Act is amended (A) by striking out "Section 1 of this Act" and inserting in lieu thereof "The first sentence of section 1 of this Act"; (B) by striking out the word "intercollegiate"

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