Page:United States Statutes at Large Volume 84 Part 1.djvu/1089

 84 STAT. ]

PUBLIC LAW 91-469-OCT. 21, 1970

1031

(4)) from the last date prescribed for payment of the tax for the taxable year for which such item was deposited in the fund, and " (iii) no interest shall be payable on amounts referred to in clauses (i) and (ii) of paragraph (2) or in the case of any nonqualified withdrawal arising from the application of the recapture provision of section 606(5) of the Merchant Marine Act of 1936 as in effect on December 31, 1969. "(4) For purposes of paragraph (3)(C) (ii), the applicable rate of interest for any nonqualified withdrawal— " (A) made in a taxable year beginning in 1970 or 1971 is 8 percent, or " (B) made in a taxable year beginning after 1971, shall be determined and published jointly by the Secretary of the Treasury and the Secretary of Commerce and shall bear a relationship to 8 percent which the Secretaries determine under joint regulations to be comparable to the relationship which the money rates and investment yields for the calendar year immediately preceding the beginning of the taxable year bear to the money rates and investment yields for the calendar year 1970. " (i) Certain Corporate Reorganizations and Changes in Partnerships. "Under joint regulations— "(1) a transfer of a fund from one person to another person in a transaction to which section 381 of the Internal Revenue Code of 1954 applies may be treated as if such transaction did SSA Stat. 124. not constitute a nonqualified withdrawal, and ^ ^^^ ^^^• ® "(2) a similar rule shall be applied in the case of a continuation of a partnership (within the meaning of subchapter K of such Code). 26 USC 701. " (j) Treatment of Existing Funds. "(1) Any person who was maintaining a fund or funds (hereinafter in this subsection referred to as 'old fund') under this section (as in effect before the enactment of this subsection) may elect to continue such old fund but— " (A) may not hold moneys in the old fund beyond the expiration date provided in the agreement under which such old fund is maintained (determined without regard to any extension or renewal entered into after April 14, 1970), " (B) may not simultaneously maintain such old fund and a new fund established under this section, and " (C) if he enters into an agreement under this section to establish a new fund, may agree to the extension of such agreement to some or all of the amounts in the old fund. " (2) I n the case of any extension of an agreement pursuant to paragraph (1)(C), each item in the old fund to be transferred shall be transferred in a nontaxable transaction to the appropriate account in the new fund established under this section. For purposes of subsection (h)(3)(C), the date of the deposit of any item so transferred shall be July 1, 1971, or the date of the deposit in the old fund, whichever is the later. " (k) Definitions. "For purposes of this section— " (1) The term 'eligible vessel' means any A^essel— "Eiigi^bie vessel." " (A) constructed in the United States and, if reconstructed, reconstructed in the United States, " (B) documented under the laws of the United States, and " (C) operated in the foreign or domestic commerce of the United States or in the fisheries of the United States. 47-348 O - 72 - 69 (Pt. 1)

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