Page:United States Statutes at Large Volume 85.djvu/47

 85 STAT. ]

PUBLIC LAW 92-9--APR. 1, 1971

voting power of all classes of stock of the foreign corporation; and, for purposes of this sentence, stock owned (directly or indirectly) by or for a foreign corporation shall be considered as being owned proportionately by its shareholders." (2)(A) Section 4914(b) (10) is amended by striking out "WHOLLY OWNED" in the heading, and by striking out "a wholly owned foreign corporation" and inserting in lieu thereof "a foreign corporation". (B) Section 4914(g) is amended by striking out "WHOLLY OWNED" in the heading.

(3) The amendments made by this subsection shall apply with respect to acquisitions made after the date of the enactment of this Act.

17

79 Stat. 957. 26 USC 4914.

78 Stat. 1813. Effective date.

(e) DIRECT INVESTMENTS IN CERTAIN LENDING AND FINANCING OlRPORATTONS.—

(1) Section 4915 is amended— 83 Stat.^ 267. ' (A) by striking out subsection (c)(3), and (B) by adding at the end thereof the following new subsection: "(e) SPECIAL RULE FOR INVESTMENTS IN CERTAIN LENDING AND FINANCING CORPORATIONS.—

"(1) IN GENERAL.—For purposes of this chapter, a corporation described in paragraph (2) shall be treated as a foreign corporation which is not foiTned or availed of for the principal purpose described in subsection (c)(1) with respect to an acquisition of its stock or debt obligations, if it is established to the satisfaction of the Secretary or his delegate, pursuant to regulations prescribed by the Secretary or his delegate, that— " (A)(i) the amounts received by the corporation as a result of the acquisition will not be used to acquire stock of foreign issuers or debt obligations of foreign obligors or utilized in any way outside of the United States, or (ii) the funds used for such acquisition were obtained from sources outside the United States; and " (B) such information and records with respect to the corporation as are necessary for the administration of this chapter will be made available to the Secretary or his delegate. " (2) CORPORATIONS.—The corporations referred to in paragraph (1) are— " (A) a domestic corporation described in section 4920(a) (3)(C),, " (B) a domestic corporation which is a qualified lending and financing corporation (as defined in section 4920(d)) during any period during which an election under section 4920(a) (3B) is in effect, and " (C) a foreign corporation which is a qualified lending and financing corporation (as defined in section 4920(d)) and has given notice to the Secretary or his delegate of its status as such a corporation. "(3) MISUSE OF AMOUNTS RECEIVED.—In any case in which paragraph (1) applied to an acquisition of stock or debt obligations and— " (i) the amounts received by the corf)oration whose stock or debt obligations were acquired as a result of such acquisition are (before the termination date specified in section 4911(d)) used to acquire stock of foreign issuers or debt obligations of foreign obligors or utilized in any other way outside of the United States in violation of the regulations prescribed under paragraph (1), or

81 Stat. 160. Post, p. 18.

^"'e»?• i3.

�