Page:United States Statutes at Large Volume 85.djvu/51

 85 STAT. ]

PUBLIC LAW 92-9-APR. 1, 1971

to file the notice required by such subparagraph due to inadvertence and not with an intent to avoid the requirements of this chapter." (2) The requirement in the last sentence of section 4920(b)(2) (as added by paragraph (1) of this subsection) that the issuing corporation make its application within 2 years after the date on which additional shares were issued in order to qualify for a waiver shall be deemed satisfied, in any case in which such 2-year period has elapsed before the expiration of 60 days after the date of the enactment of this Act, if the issuing corporation involved makes the application within such 60-day period. (3) The amendment made by paragraph (1) shall take effect on the date of the enactment of this Act. (h)

21

Effective date.

CERTAIN MUTUAL F U N D S. —

(1) Section 4920 is amended— (A) by inserting "subject to the provisions of subsection (e)," before "a domestic corporation which" in subsection (B) by inserting after "If, at the close of any succeeding quarter," in subsection (a)(3)(B) the following: "15 percent or more in value of the outstanding stock of the company is owned, directly, or indirectly (within the meaning of section 4915(a)(1)), by one person, or"; and (C) by redesignating subsection (e) as (f), and by inserting after subsection (d) the following new subsection: "(e) CERTAIN MUTUAL FUNDS.—Notwithstanding subsection (a) (3)(B), a domestic corporation described in such subsection shall not be treated as a 'foreign issuer', 'foreign obligor', or 'foreign issuer or obligor' with respect to any acquisition of stock or a debt obligation which is attributable to funds obtained by borrowing or through issuance of its stock after March 24, 1971." (2) The amendments made by paragraphs (1)(A) and (C) shall apply with respect to acquisitions made after March 24, 1971. The amendment made by paragraph (1)(B) shall take effect on the date of the enactment of this Act.

26Usc492^J.

78 Stat. 824. Ante, p. 18.

Effective date.

(i) DEBT OBLIGATIONS W I T H MATURITY OF LESS T H A N A YEAR.—

(1) Subchapter A of chapter 41 is amended by adding at the end thereof the following new section:

26 USC 4911.

"SEC. 4921. DEBT OBLIGATIONS WITH MATURITY OF LESS THAN A YEAR. "(a)

STANDBY AUTHORITY. —

"(1) IN GENERAL.—If the President of the United States determines, after taking into account the domestic economic objectives, the balance of payments objectives, and the other international economic objectives of the United States, that it is desirable to apply the tax imposed by section 4911 to the acquisition of debt ga^statr'aela'!^' obligations of foreign obligors having a period remaining to maturity of less than 1 year, he may, from time to time by Executive order (applicable as provided in subsection (c)), extend the application of such tax, at such rate or rates (subject to the provisions of subsection (b)) specified in such order, to the acquisition of such debt obligations specified in such order. The authority conferred by this paragraph may be exercised, at the discretion of the President, with respect to any classification of such debt obligations specified in paragraph (2), and with respect to acquisitions occurring during such period of time, as may be specified in the Executive order. The President may by subsequent Executive order terminate or modify any Executive order previously issued under this section.

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