Page:United States Statutes at Large Volume 81.djvu/185

 81 STAT.]

PUBLIC LAW 90-59-JULY 31, 1967

"(2) if such acquisition was effected by such participatin/i; firm in a sale b^, or effected by, another participating firm on a national securities exchange registered with the Securities and Exchange Commission, or in a transaction in which such participating firm and the participating firm effecting the sale were members of a national association of securities dealers registered with the Securities and Exchange Commission, and if such acquisition was effected in accordance with rules of such exchange or such association which the Secretary or his delegate determines require acquisitions exempt from tax under this section to be effected in such a manner that the requirements of subsection (e) are satisfied. Any l E T clean confirmation issued under this subsection shall be clearly distinguishable from any other confirmation issued with respect to an acquisition of stock of a foreign issuer or a debt obligation of a foreign obligor by a participating firm. "(e) SALES EFFECTED BY PARTICIPATING F I R M S IN CONNECTION W I T H EXEMPT ACQUISITIONS.—A participating firm selling, or effecting the

sale of, stock of a foreign issuer or a debt obligation of a foreign obligor may issue a written comparison or broker-dealer confirmation, which indicates the exemption for prior American ownership and compliance provided in subsection (a) applies to such acquisition, only if such participating firm has in its possession (except in the case of a sale for another participating firm or a participating custodian to which paragraph (4) applies) a statement, upon which such participating firm relies in good faith, executed under penalty of perjury by the person making the sale, establishing that such person is a United States person and is the owner of all stock of foreign issuers and debt obligations of foreign obligors carried in the records of such participating firm for the account of such person; and either— "(1)(A) at the close of business on July 14, 1967, carried such stock or debt obligation in its records (on a trade-date basis) for the account of the seller; and " (B) included such stock or debt obligation in the transition inventory referred to in subsection (g) filed or to be filed on or before the due date by such participating firm with the Secretary or his delegate in accordance with the provisions of such subsection; "(2) after July 14, 1967— " (A) sold for its own account such stock or debt obligation to the seller, or acting as broker effected the acquisition of such stock or debt obligation by the seller, if the exemption for prior American ownership and compliance provided in subsection (a) applied to such acquisition by reason of subsection (b)(1)(B); and " (B) continuously carried in its records on a trade-date basis for the account of the seller such stock or debt obligation; "(3)(A) sold for its own account such stock or debt obligation to the seller, or acting as a broker effected the acquisition of such stock or debt obligation by the seller, if, by reason of subsection (b)(1)(B) (or by reason of subsections (c) or (d) as in effect with respect to acquisitions before July 15, 1967), the exemption for prior American ownership and compliance provided by subsection (a) (or the exemption for prior American ownership provided by subsection (a) as in effect with respect to acquisitions before July 15, 1967) applied to such acquisition; and

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