Page:United States Statutes at Large Volume 85.djvu/570

 540

7o'*stat^943°^'

PUBLIC LAW 92-178-DEC. 10, 1971

[85 STAT.

" (B) held primarily for sale, lease, or rental, in the ordinary course of trade or business, by, or to, a D I S C, for direct use, consumption, or disposition outside the United States, and " (C) not more than 50 percent of the fair market value of which is attributable to articles imported into the United States. I n applying subparagraph (C), the fair market value of any article imported into the United States shall be its appraised value, as determined by the Secretary or his delegate under section 402 or 402a of the Tariff Act of 1930 (19 U.S.C. sec. 1401a or 1402) iucomiection withitsimportation. "(2) EXCLUDED PROPERTY.-—For purposes of this part, the term 'export property' does not include— " (A) property leased or rented by a D I S C for use by any member of a controlled group (as defined in subsection (a)(3)) which includes the D I S C, or " (B) patents, inventions, models, designs, formulas, or processes, whether or not patented, copyrights (other than films, tapes, records, or similar reproductions, for commercial or home use), good will, trademarks, trade brands, franchises, or other like property. "(3) PROPERTY I N SHORT SUPPLY.—If the President determines that the supply of any property described in paragraph (1) is insufficient to meet the requirements of the domestic economy, he may by Executive order designate the property as in short supply. Any property so designated shall be treated as property not described in paragraph (1) during the period beginning with the date specified in the Executive order and ending with the date specified in an Executive order setting forth the President's determination that the property is no longer in short supply. "(d)

PRODUCER'S LOANS.—

" (1) IN GENERAL.—An obligation, subject to the rules provided in paragraphs (2) and (3), shall be treated as arising out of a producer's loan if— " (A) the loan, when added to the unpaid balance of all other producer's loans made by the D I S C, does not exceed the accumulated D I S C income at the beginning of the month in which the loan is made; " (B) the obligation is evidenced by a note (or other evidence of indebtedness) with a stated maturity date not more than 5 years from the date of the loan; " (C) the loan is made to a person engaged in the United States in the manufacturing, production, growing, or extraction of export property (referred to hereinafter as the 'borrower'); and " (D) at the time of such loan.it is designated as a producer's loan. "(2) LIMITATION.—An obligation shall be treated as arising out of a producer's loan only to the extent that such loan, when added to the unpaid balance of all other producer's loans to the borrower outstanding at the time such loan is made, does not exceed an amount determined by multiplying the sum of— " (A) the amount of the iDorrower's adjusted basis determined at the beginning of the borrower's taxable year in which the loan is made, in plant, machinery, and equipment, and supporting production facilities in the United States; " (B) the amount of the borrower's property held primarily for sale, lease, or rental, to customers in the ordinary course

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