Page:United States Statutes at Large Volume 83.djvu/555

 83 STAT.]

PUBLIC LAW 9 ] - 1 7 2 - D E C. 30, 1969

taxes for the purpose of any law which refers to organizations exempt from income taxes." (5) Section 501(c) (16) (relating to list of exempt organizations) is amended by striking out "part III " and inserting in lieu thereof "part IV ". (6) Section 501(e) (relating to cooperative hospital service organizations) is amended by striking out in the last sentence thereof "section 503(b)(5)." and inserting in lieu thereof "section 170(b)(1)(A) (iii).". (7) Section 503(a)(1) (relating to general rule) is amended to read as follows: "(1)

527

26^scr5o\"' 82 Stat. 269.

74 Stat. 535.

GENERAL RULE. —

" (A) An organization described in section 501(c) (17) shall not be exempt from taxation under section 501(a) if it has engaged in a prohibited transaction after December 31, 1959. " (B) An organization described in section 401(a) shall not be exempt from taxation under section 501(a) if it has engaged in a prohibited transaction after March 1, 1954." (8) Section 503(a)(2) (relating to taxable years affected by denial of exemption) is amended by striking out "section 501(c) (3) or (17)" and inserting in lieu thereof "section 501(c) (17)". (9) Section 503(d) (relating to future status of organizations denied exemption) is amended by striking out "section 501(c)(3) or (17)" and inserting in lieu thereof "section 501(c) (17)". (10) Section 503(g) (relating to special rule for loans) is amended by striking out "subsection (c)(1), " and inserting in lieu thereof "subsection (b)(1),". (11) Section 503(h) (relating to special rules relating to lending by section 401(a) and section 501(c) (17) trusts to certain persons) is amended— (A) by striking out in the heading thereof "SPECIAL RULES RELATING TO LENDING BY SECTION 401(a) AND SECTION 501(c) (17) TRUSTS TO CERTAIN PERSONS.—", and inserting in lieu thereof "SPECIAL RULES.—"^ (B) by striking out "subsection (c)(1)," and inserting in lieu thereof "subsection (b)(1),", (C) by striking out "acquired by a trust described in section 401(a) or section 501(c) (17)", and (D) by striking out in paragraph (3) "subsection (c) " and inserting in lieu thereof "subsection (b)". (12) Section 503(i) (relating to loans with respect to which employers are prohibited from pledging certain assets) is amended— (A) by striking out "Subsection (c)(1) " and inserting in lieu thereof "Subsection (b)(1)", and (B) by striking out "suDsection (h) " and inserting in lieu thereof 'Subsection (e)". (13) Section 503(j)(1) (relating to prohibited transactions) is amended by striking out "subsection (c) " and inserting in lieu thereof "subsection (b) ". (14) Section 503 (relating to requirements of exemption) is amended by striking out subsections (b), (e), and (f) and by redesignating subsections (c), (d), (g), (h). (i), and (i) (as amended), as subsections (b), (c), (d), (e), (f), and (g), respectively. (15) Section 504 (relating to denial of exemption) is repealed.

74 Stat. 534. 68A Stat. 163.

68A Stat. 166.

72 Stat. 1629.

72 Stat. 1630.

76 Stat. 827.

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