Page:United States Statutes at Large Volume 87.djvu/45

 87 STAT.]

PUBLIC LAW 93-17-APR. 10, 1973

debt obligation of a foreijfii corporation which is treated as issued under section 4912(c)(2) after December 31, 1972, and before January 1, 1974, the amendment made by paragraph (1) shall apply with respect to estates of decedents dying after December 31, 1973.

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(b) KEPEAL OF ExEMrriox FOR SHIPPING COMPANIES IN LESS DEVELOPED COUNTRIES.—

(1) IN GENERAL.—Section 4916 (relatino; to investments in less developed countries) is amended by adding at the end thereof the following new subsection:

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"(e) REPEAL OF P^XCLUSION FOR ISSUES AFTER JANUARY 29, 1973 I N THE CASE OF LESS DEVELOPED COUNTRY SHII'PIN(J COMPANIES.—Sub-

section (a)(2) shall not apply to acquisitions of stock or debt obligations of a corporation described in subsection (c)(1)(B) (relating to certain less developed country shipping companies) which were issued after January 29, 1973."'

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(2) CONFORMING AMENDMENT.—Section 4916(a)(2) is amended

by inserting "(except as provided in subsection (e)) " after "less developed country corporation"'. (c) EXCEPTIONS TO EXCLUSION RULES FOR CERTAIN PRE-EXISTING COMMITMENTS, E T C. — (1) ExcEi»rioN FOR PRE-EXISTING COMMITMENTS.—Section

4916(e) of the Internal Revenue Code of 1954 (relating to repeal supra. of exclusion for issues after January 29, 1973, in the case of less developed country shipping companies) shall not apply to an acquisition— (A) made pursuant to an obligation to acquire which, on January 29, 1973— (i) was unconditional, or (ii) was subject only to conditions contained in a formal contract under which partial performance had occurred; (B) as to which on or before January 29, 1973, the acquiring United States person (or, in a case where 2 or more United States persons are making acquisitions as part of a single transaction, a majority in interest of such persons) had taken every action to signify approval of the acquisition under the procedures ordinarily employed by such person (or persons) in similar transactions, subject only to the execution of formal documents evidencing the acquisition and to customary closing conditions, and the acquiring United States person (or persons) — (i) had sent or deposited for delivery to the foreign issuer or obligor from whom the acquisition was made written evidence of such approval in the form of a com-

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