Page:United States Statutes at Large Volume 81.djvu/183

 81 STAT.]

PUBLIC LAW 90-59-JULY 31, 1967

149

" (b) ESTABLISHING E X E M P H O N roR PRIOR AMERICAN OWNERSHIP AND C O M P L I A N C E. —

"(1) CONCLUSIVE PROOF.—For purposes of the exemption for

prior American ownership and compliance provided in subsection "'(A) a validation certificate, evidencing that the person from whom stock of a foreign issuer or a debt obligation of a foreign obligor was acquired was a person described in subsection (a), issued by the Secretary or his delegate (or by any officelr or employee of the United States designated by the Secretary or his delegate) and filed in accordance with the requirements prescribed by the Secretary or his delegate; or " (B) a written confirmation (referred to as an l E T clean confirmation) received by the person acquiring such stock or debt obligation from a participating firm acting as a broker in effecting the acquisition (or acting for its own account) which contains no reference to liability for the tax imposed by section 4911, shall be conclusive proof that such exemption applies with respect to the acquisition of the stock or debt obligation described in such certificate or confirmation, if the f)erson making the acquisition relies in good faith on the validity of such certificate or confirmation. "(2) OTHER PROOF.—If the person making an acquisition of stock or a debt obligation shows reasonable cause for his inability to establish such exemption under paragraph (1) he may furnish other evidence to establish to the satisfaction of the Secretary or his delegate that such exemption is applicable to such acquisition. "(c)

Ante, p. u s.

PARTIGIPATING F I R M. —

"(1) DEFINITION.—For purposes of this section, a participating firm is a member or member organization of a national securities exchange or association registered with the Securities and Exchange Commission which satisfies the eligibility requirements set forth in paragraph (2). "(2)

ELIGIBILITY REQUIREMENTS.—

" (A) IN GENERAL.—A member or member organization of a national securities exchange or association registered with the Securities and Exchange Commission shall qualify as a participating firm if such member or member organization notifies the Secretary or his delegate that it— "(i) agrees to comply with the provisions of this chapter and with the documentation, recordkeeping, reporting, and auditing requirements prescribed by the Secretary or his delegate to implement such provisions; and "(ii) if such notification is made after August 14, 1967, is complying with such provisions and requirements. "(B)

PARTICIPATING FIRMS DURING INTERIM PERIOD.—Dur-

ing the period commencing July 15, 1967, and ending on August 14, 1967, the following are deemed to be participating firms which satisfy the eligibility requirements of subparagraph (A): " (i) all members and member organizations of the New York Stock Exchange; "(ii) all members and member organizations of the American Stock Exchange; and "(iii) members or member organizations of the National Association of Securities Dealers, Inc., which reported net capital (as defined in rule 15c 3-1 under the Securities Exchange Act of 1984) of $750,000 in the

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