Page:United States Statutes at Large Volume 83.djvu/648

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PUBLIC LAW 91-172-DEC. 30, 1969

68A Stat. 202.

76 Stat. 978. 26 USC 593.

[83 ST^T

(2) The table of sections for part I of subchapter H of chant 1 is amended— ^ (A) by striking out: "Sec. 582. Bad debt and loss deduction with respect to seenrif held by banks." ^^ ^^ and inserting in lieu thereof: "Sec. 582. Bad debts, losses, and gains with respect to securitip / held by financial institutions." ^ (B) by adding at the end thereof the following: ".*'• ' "Sec. 585. Reserves for losses on loans of banks. . • "Sec. 586. Reserves for losses on loans of small business investment companies, etc." (d) EFFECTIVE DATE.—The amendments made by subsections (a) and (c) shall apply to taxable years beginning after July 11, 1969. SEC. 432. MUTUAL SAVINGS BANKS, ETC. (a) EESERVE FOR LOSSES ox LOANS.—Section 593(b) (relating to addition to reserves for bad debts) is amended— (1) by striking out subparagraph (A) of paragraph (1) and inserting in lieu thereof the following: " (A) the amount determined to be a reasonable addition to the reserve for losses on nonqualifying loans, computed in the same manner as is provided with respect to additions to the reserves for losses on loans of banks under section 585(b)(3), plus". (2) by striking out paragraphs (2), (3), (4), and (5) and inserting in lieu thereof the following: " (2)

PERCENTAGE OF TAXABLE INCOME METHOD.—

" (A) IN GENERAL.—Subject to subparagraphs (B), (C), and (D), the amount determined under this paragraph for the taxable year shall be an amount equal to the applicable percentage of the taxable income for such year (determined under the following table): The applicable percentage under "For a taxable year beginning in— this paragraph shall be— 1969 60 percent 1970 57 percent 1971 54 percent 1972 51 percent 1973 49 percent 1974 47 percent 1975 45 percent 1976 43 percent 1977 42 percent 1978 41 percent 1979 or thereafter 40 percent "(B)

Post,

p. 622.

REDUCTION OF APPLICABLE PERCENTAGE IN CERTAIN

CASES.—If, for the taxable year, the percentage of the assets of a taxpayer described in subsection (a), which are assets described in section 7701(a) ( 1 9)(C), i s less than— " (i) 82 percent of the total assets in the case of a tax;;:-i, payer other than a mutual savings bank, the applicable percentage for such year provided by subparagraph (A) a^sif:.,^ |s> - shall be reduced by % of 1 percentage point for each 1 percentage point of such difference, or "(ii) 72 percent of the total assets in the case of a mutual savings bank, the applicable percentage for such
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