Page:United States Statutes at Large Volume 81.djvu/764

 730

Notice to Congress.

PUBLIC LAW 90-225-DEC. 27, 1967

[81 STAT.

may be terminated at an earlier date if necessitated by the defense requirements of the United States. SEC. 4. No loan may be made or extended under this Act unless the Secretary of Defense, after consultation with the Joint Chiefs of Staff, determines that such loan or extension is in the best interest of the United States. The Secretary of Defense shall keep the Congress currently advised of all loans made or extended under this Act. SEC. 5. The President may promulgate such rules and regulations as he deems necessary to carry out the provisions of this Act. Approved December 26, 1967, 4:09 p.m.

Public Law 90-225 December 27, 1967 [H. R. 4765]

Taxes. Bank Holding Company distfibutions. 26 USC 1102. 12 USC 1841 note.

80 Stat. 236. 70 Stat. 139.

AN ACT To amend the Internal Revenue Code of 19.14 \A'ith respect to the income tax t r e a t m e n t of certain distributions pursuant to the Bank Holding Company Act of 1956, as amended, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress oAsembled^ That section 1102 of the Internal Revenue Code of 1954 (relating to special rules for income tax treatment of distributions pursuant to the Bank Holding Company Act of 1956) is amended by adding at the end thereof the following new subsection: "(e) CERTAIN B A N K HOLDING COMPANIES.—This part shall apply in respect of any company which becomes a bank holding company as a result of the enactment of the Act entitled 'An Act to amend the Bank Holding Company Act of 1956', approved July 1, 1966 (Public Law 89-485), with the following modifications: "(1) Subsections (a)(3) and (b)(3) of section 1101 shall not apply. "(2) Subsections (a)(1) and (2) and (b)(1) and (2) of section 1101 shall apply in respect of distributions to shareholders of the distributing bank holding corporation only if all distributions \a each class of shareholders which are made— " (A) after April 12, 1965, and " (B) on or before the date on which the Board of Governors of the Federal Reserve System makes its final certification under section 1101(e), are pro rata. For purposes of the precedin|^ sentence, any redemption of stock made in whole or in part with property other than money shall be treated as a distribution. "(3) In applying subsections (c) and (d) of section 1101 and ID,

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