Page:United States Statutes at Large Volume 81.djvu/186

 152

Ante,

PUBLIC LAW 90-59-JULY 31, 1967

p. 145.

[81 STAT.

" (B) after July 14, 1967, received from the seller the identical stock certificates or evidences of indebtedness which it had previously delivered to the seller with respect to such acquisition by the seller; "(4) receives possession of such stock or debt obligation from another participating firm or from a participating custodian, together with a transfer of custody certificate, as provided in subsection (h); "(5) receives from the seller stock which was registered before July 19, 1963, in the name of the seller by a participating custodian which acted as transfer agent or registrar in registering such stock; "(6) receives a validation certificate issued by the Secretary or his delegate evidencing that the seller is a person described in subsection (a) with respect to such stock or debt obligation and files such certificate with the Secretary or his delegate in accordance with the requirements prescribed by the Secretary or his delegate; or " (7) withholds from the proceeds of such sale (with the consent of the seller) an amount equal to the tax which would be imposed under section 4911 on the acquisition of such stock or debt obligation by the purchaser if such acquisition vrere not exempt from such tax under this section. The withholding under paragraph (7) shall be treated as the collection of the tax imposed under section 4911 on the acquisition by the seller of such stock or debt obligation and shall be paid over to the Secretary or his delegate or released to the seller at such time and in such manner as provided in regulations prescribed by the Secretary or his delegate. "(f)

PARTICIPATING CUSTODIAN.—

"(1) DEFINITION.—For purposes of this section, a participating custodian is a bank or trust company insured by the Federal Deposit Insurance Corporation which satisfies the eligibility requirements set forth in paragraph (2). "(2)

ELIGIBILITY REQUIREMENTS.—

" (A) IN GENERAL.—A bank or trust company insured by the Federal Deposit Insurance Corporation may become a participating custodian if such bank or trust company notifies the Secretary or his delegate that it— " (i) agrees to comply with the provisions of this chapter and the documentation, record-keeping, 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 CUSTODIANS DURING INTERIM PERIOD.—

During the period commencing July 15, 1967, and ending on August 14, 1967, Federal Reserve member banks which are classified as reserve city banks are deemed to be participating custodians which satisfy the eligibility requirements of subparagraph (A). " (C) TERMINATION OF STATUS.—The status of a bank or trust company insured by the Federal Deposit Insurance Corporation as a participating custodian shall be terminated, if— " (i) such bank or trust company qualifies as a participating firm during the interim period described in subparagraph (B) and does not submit to the Secretary

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