Page:United States Statutes at Large Volume 85.djvu/45

 85 STAT. ]

PUBLIC LAW 92-9-APR. 1, 1971

15 80 Stat. 1542.

(2) Section 861(a)(1) is amended— (A) by striking out "and" at the end of subparagraph (E), (B) by striking out the period at the end of subparagraph (F) and inserting in lieu thereof ", and", and (C) by adding at the end thereof the following new subparagraph: " (G) interest on a debt obligation which was part of an issue with respect to which an election has been made under section 4912(c) and which, when issued (or treated as issued under section 4912(c)(2)), had a maturity not exceeding 15 years and, when issued, was purchased by one or more underwriters with a view to distribution through resale, but only with respect to interest attributable to periods after the date of such election." (3) The amendments made by this subsection shall take effect on the date of the enactment of this Act. (b) ACQUISITIONS I N CONNECTION W I T H NATIONALIZATION, EXPROPRIATION, E T C. —

(1) Section 4914(b) is amended by adding at the end thereof the following new paragraph:

26 USC'861.

Ante, p. 14.

Effective date.

78 Stat. 813; 81 Stat. 157.

" ( 1 6) ACQUISITION S OF STOCK OR DEBT OBLIGATIONS I N CONNECT I O N WITH NATIONALIZATION, EXPROPRIATION, ETC.—Of StOCk o r

debt obligations of a foreign issuer or obligor, where such acquisition is required as a reinvestment in connection with an actual or threatened nationalization, expropriation, or seizure of property, to the extent provided in subsection (k). " (2) Section 4914 is amended by adding at the end thereof the following new subsection: "(k)

ACQUISITIONS or STOCK OR DEBT OBLIGATIONS I N CONNECTION

W I T H NATIONALIZATION, EXPROPRIATION, ETC.—The tax imposed by

section 4911 shall not apply to the acquisition by a United States person of stock or a debt obligation of a foreign issuer or obligor, to the extent that such acquisition is required as a reinvestment within a foreign country by the terms of a contract of sale to, or a contract of indemnification with respect to the nationalization, expropriation, or seizure by, the government of such country or a political subdivision thereof, or an agency or instrumentality of such government, of property owned within such country or such political subdivision by such United States person, or by a controlled foreign corporation (as defined in section 957) more than 50 percent of the total combined voting power of all classes of stock entitled to vote of which is owned (within the meaning of section 958) by such United States person, but only if such contract was entered into because the government of such country or political subdivision, or such agency or instrumentality— " (A) has nationalized or has expropriated or seized, or has threatened to nationalize or to expropriate or seize, a substantial portion of the property owned within such country or such political subdivision by such United States person or such controlled foreign corporation; or " (B) has taken action which has the effect of nationalizing or of expropriating or seizing, or of threatening to nationalize or to

78 Stat. 809.

76 Stat. 1017.

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