Page:United States Statutes at Large Volume 85.djvu/48

 18

78 Stat. 809; 26 USC 49*11.

83 Stat. 264.

PUBLIC LAW 92-9-APR. 1, 1971

[85

STAT.

"(ii) information or records with res])0('t to the corporation, which the Secretary or delegate has determined (before such termination date) necessary for the administration of this chapter, are not, after reasonable iiotice, made avaihible to the Secretary, then liability for the tax imposed by section 4911 shall be incurred by the acquiring corporation (with respect to such acquisition) at the time such amounts are so used or such information or records are not so made available; and the amount of such tax shall be equal to the amount of tax for which the acquiring corporation would have been liable under such section upon its acquisition of the stock or debt obligations involved if paragraph (1) had not applied to such acquisition." (g) Section 4920(a) (3B) is amended to read as follows: " (3B) CERTAIN DOMESTIC LENDING OR FINANCING CORPORATIONS.—

Definitions.

"Qualified lend-

c"^o'raao^n.""^

"(-^) IN GENERAL.—The terms 'foreign issuer', 'foreign obligor', and 'foreign issuer or obligor' also mean a domestic corporation which is a qualified lending or financing corporation (as defined in subsection (d)) and which elects to be treated, for purposes of this chapter, as a foreign issuer and foreign obligor. " (B) ELECTION.—An election under subparagraph (A) shall be made in such manner as the Secretary or his delegate prescribes by regulations. Any such election shall be effective as of the date thereof and shall remain in effect until revoked. If, at any time, the corporation ceases to be a qualified lending or financing corporation, the election shall thereupon be deemed revoked. When an election is revoked, no further election may be made. If an election is revoked, the corporation shall incur liability at the time of such revocation for the tax imposed by section 4911 with respect to all stock or debt obligations which were acquired by it during the period for which the election was in effect and which are held by it at the time of such revocation; and the amount of such tax shall be equal to the amount of tax for which the corporation would be liable under such section if it had acquired such stock or debt obligations immediately after such revocation." (3) Section 4920(d) is amended to read as follows: ^^ (d)

QUALIFIED L E N D I N G AND FINANCING CORPORATIONS.

For pur-

l)Oses of this chapter, the term 'qualified lending or financing corporation' means a corporation— "(1) substantially all of the business of which consists of— " (A) making loans (including the acquisition of obligations arising under a lease which is entered into principally as a financing transaction), " (B) acquiring accounts receivable, notes, or installment obligations arising out of the sale of tangible personal property or the performance of services, " (C) leasing tangible personal property (but only if such leasing accounts for less than 50 pei"cent of its business), " (D) servicing debt obligations, " (E) carrying on incidental activities in comiection with its business described in subparagraphs (A), (B), (C), or (D),or " (F) any combination of the foregoing; "(2) all debt obligations of foreign obligors acquired by such corporation, and all tangible personal property not manufactured

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