Page:United States Statutes at Large Volume 84 Part 1.djvu/1085

 84 STAT. ]

PUBLIC LAW 91-469-OCT. 21, 1970

1027

agreement with the Secretary of Commerce under, and as provided in, this section to establish a capital construction fund (hereinafter st?ucao?fun'd. in this section referred to as the 'fund') with respect to any or all of such vessels. Any agreement entered into under this section shall be for the purpose of providing replacement vessels, additional vessels, or reconstructed vessels, built in the United States and documented under the laws of the United States for operation in the United States foreign, Great Lakes, or noncontiguous domestic trade or in the fisheries of the United States and shall provide for the deposit in the fund of the amounts agreed upon as necessary or appropriate to provide for qualified withdrawals under subsection (f). The deposits in the fund, and all withdrawals from the fund, whether qualified or nonqualified, shall be subject to such conditions and requirements as the Secretary of Commerce may by regulations prescribe or are set forth in such agreement; except that the Secretary of Commerce may not require any person to deposit in the fund for any taxable year more than 50 percent of that portion of such person's taxable income for such year (computed in the manner provided in subsection (b)(1)(A)) which is attributable to the operation of the agreement vessels. " (b) Ceiling on Deposits. "(1) The amount deposited under subsection (a) in the fund for any taxable year shall not exceed the sum of: " (A) that portion of the taxable income of the owner or lessee for such year (computed as provided in chapter 1 of the Internal Revenue Code of 1954 but without regard to the carryback of 26 USC i et seq. any net operating loss or net capital loss and without regard to this section) which is attributable to the operation of the agreement vessels in the foreign or domestic commerce of the United States or in the fisheries of the United States, " (B) the amount allowable as a deduction under section 167 of the Internal Revenue Code of 1954 for such year with respect to 83^st^t!'625^ 649 the agreement vessels, 26 USC leV. " (C) if the transaction is not taken into account for purposes of subparagraph (A), the net proceeds (as defined in joint regulations) from (i) the sale or other disposition of any agreement vessel, or (ii) insurance or indemnity attributable to any agreement vessel, and " (D) the receipts from the investment or reinvestment of amounts held in such fund, "(2) I n the case of a lessee, the maximum amount which may be deposited with respect to an agreement vessel by reason of paragraph (1)(B) for any period shall be reduced by any amount which, under an agreement entered into under this section, the owner is required or permitted to deposit for such period with respect to such vessel by reason of paragraph (1)(B). "(8) For purposes of paragraph (1), the term 'agreement vessel' „^l'^f^*!'"^'^* vessel.' includes barges and containers which are part of the complement of "'^"°° such vessel and which are provided for in the agreement. " (c) Requirements as to Investments. "Amounts in any fund established under this section shall be kept in the depository or depositories specified in the agreement and shall be subject to such trustee and other fiduciary requirements as may be specified by the Secretary of Commerce. They may be invested only in interest-bearing securities approved by the Secretary of Commerce; except that, if the Secretary of Commerce consents thereto, an agreed percentage (not in excess of 60 percent) of the assets of the fund may be invested in the stock of domestic corporations. Such stock must be

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