Page:United States Statutes at Large Volume 83.djvu/650

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76 Stat. 981. 26 USC 593.

26 USC 381. 76 Stat. 982.

48 Stat. 1255.

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82"tSr5il'^' 42 USC 14501469c. 42 USC 3303.'

PUBLIC LAW 91-172-DEC. 30, 1969

[83 ST^T

taxable year shall be the total of the balances at such time of t] reserve for losses on nonqualifying loans, the reserve for losses o^ qualifying real property loans, and the supplemental reserve for losses on loans." (b) CERTAIN CORPORATE AcQuisrnoNS.—Section 593(f)(1) (relating to distributions to shareholders) is amended by adding at the end thereof the following new sentence: "This paragraph shall not apply to any transaction to which section 381 (relating to carryovers in certain corporate acquisitions) applies." (c) INVESTMENT STANDARDS.—Section 7T01(a)(19) (defining domestic building and loan association) is amended to read as follows"(19) DOMESTIC BUILDING AND LOAN ASSOCIATION.—The terni 'domestic building and loan association' means a domestic buildinoand loan association, a domestic savings and loan association and a Federal savings and loan association— " (A) which either (i) is an insured institution within the meaning of section 401(a) of the National Housing Act (12 U.S.C. sec. 1724(a)), or (ii) is subject by law to supervision and examination by State or Federal authority having supervision over such associations; " (B) the business of which consists principally of acquiring the savings of the public and investing in loans; and " (C) at least 60 percent of the amount of the total assets of which (at the close of the taxable year) consists of— " (i) cash, " (ii) obligations of the United States or of a State or political subdivision thereof, and stock or obligations of a corporation which is an instrumentality of the United States or of a State or political subdivision thereof, but not including obligations the interest on which is excludable from gross income under section 103, "(iii) certificates of deposit in, or obligations of, a corporation organized under a State law which specifically authorizes such corporation to insure the deposits or share accounts of member associations, " (iv) loans secured by a deposit or share of a member, " (v) loans (including redeemable ground rents, as defined in section 1055) secured by an interest in real property which is (or, from the proceeds of the loan, will become) residential real property or real property used primarily for church purposes, loans made for the improvement of residential real property or real property used primarily for church purposes, provided that for purposes of this clause, residential real property shall include single or multifamily dwellings, facilities m residential developments dedicated to public use or property used on a nonprofit basis for residents, and mobile homes not used on a transient basis, "(vi) loans secured by an interest in real property . '' located within an urban renewal area to be developed for, , predominantly residential use under an urban renewal plan approved by the Secretary of Housing and Urban Development under part A or part B of title I of the ' • '~ > • Housing Act of 1949, as amended, or located within aiiy _ ^ area covered by a program eligible for assistance under ' section 103 of the Demonstration Cities and Metropolitan Development Act of 1966, as amended, and loans made for the improvement of any such real property,

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