Page:United States Statutes at Large Volume 83.djvu/742

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PUBLIC LAW 91-17^DEC. 30, 1969

[83 STAT.

" (F) a distribution to a private foundation in redemption of stock which is described in section 5 3 7 (b)(2)(A) and (B);and " (G) a distribution by a corporation to which part I of subchapter M (relating to regelated investment companies) applies, if such distribution is in redemption of its stock upon the demand of the shareholder."

Post. p. 715. 68A Stat. 268. 851-855. (b)

CONFORMING AMENDMENTS.—

(1) Section 311(a) is amended by striking out "subsections (b) and (c) " and inserting in lieu thereof "subsections (b), (c), and (d) ". (2) Sections301(b)(1)(B) (ii),301(d)(2)(B), and 3 1 2 (c)(3) are each amended by striking out "subsection (h) or (c) " and inserting in lieu thereof "subsection (b), (c), or (d) ". (c) EFFECTIVE DATE.—

68A Stat. 182.

26 USC 303.

(1) Except as provided in paragraphs (2) and (3), the amendments made by subsections (a) and (b) shall apply with respect to distributions after November 30, 1969. (2) The amendments made by subsections (a) and (b) shall not apply to a distribution before April 1, 1970, pursuant to the terms of— (A) a written contract which was binding on the distributing corporation on November 30, 1969, and at all times thereafter before the distribution, (B) an offer made by the distributing corporation before December 1, 1969, (C) an offer made in accordance with a request for a ruling filed by the distributing corporation with the Internal Revenue Service before December 1, 1969, or (D) an offer made in accordance with a registration statement filed with the Securities and Exchange Commission before December 1, 1969. For purposes of subparagraphs (B), (C), and (D), an offer shall be treated as an offer only if it was in writing and not revocable by its express terms. (3) The amendments made by subsections (a) and (b) shall not apply to a distribution by a corporation of specific property in redemption of stock outstanding on November 30, 1969, if— (A) every holder of such stock on such date had the right to demand redemption of his stock in such specific property, and (B) the corporation had such specific property on hand on such date in a quantity sufficient to redeem all of such stock. For purposes of the preceding sentence, stock shall be considered to have been outstanding on November 30, 1969, if it could have been acquired on such date through the exercise of an existing right of conversion contained in other stock held on such date. SEC. 906. REASONABLE ACCUMULATIONS BY CORPORATIONS. (j^) GENERAL RULE.—Section 537 (relating to reasonable needs of the business) is amended to read as follows: "SEC. 537. REASONABLE NEEDS OF THE BUSINESS, " (a) GENERAL RULE. — For purposes of this part, the term 'reasonable needs of the business' includes— "(1) the reasonably anticipated needs of the business, «^2) the section 303 redemption needs of the business, and "(3) the excess business holdings redemption needs of the business.

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