Page:United States Statutes at Large Volume 87.djvu/47

 87 STAT. ]

PUBLIC LAW 93-17-APR. 10, 1973

15

the Internal Revenue Code of 1954, or which is the agent or rep- 76 Stat. lois. resentative of such person. ^^ "^^ ^^^' ( II) ACQUIRING UNITED STATES PERSON.—The term "acquiring un'itt'd'sta'tet petUnited States person (or persons)" includes the immediate prede- son (or persons)." cesser in interest to such person or persons. (2) EXCEPTION FOR PUBLIC OFFERING.—Such section 4916(e) Ante,p.iz. shall not apply to an acquisition if— (A) a registration statement (within the meaning of the Securities Act of 1933) had been m effect, with respect to the '•^ ^tat. 74. stock or debt obligation acquired, at the time of its issuance; ^^ ^^^ ^^^* (B) the registration statement was first filed with the Securities and Exchange Commission on January 29, 1973, or within 90 days before that date; and (C) no amendment was filed with the Securities and Exchange Commission after January 29, 1973, and before the issuance of such stock or debt obligation which had the effect of increasing the number of shares of stock or the aggregate face amount of the debt obligations covered by the registration statement. (3) EXCEPTION FOR OPTIONS, FORECLOSURES, AND CONVERSIONS.—

Such section 4916(e) shall not apply to an acquisition— (A) of stock pursuant to the exercise of an option or similar right (or a right to convert a debt obligation into stock), if such option or right was held on January 29, 1973, by the person making the acquisition or by a decedent from whom such person acquired the right to exercise such option or right by bequest or inheritance or by reason of such decedent's death, or (B) of stock or debt obligations as a result of a foreclosure by a creditor pursuant to the terms of an instrument held by such creditor on January 29, 1973. (4) CONSTRUCTION.—The provisions of this subsection shall be construed and applied as if this subsection were part of chapter 41 of the Internal Revenue Code of 1954 (relating to interest ^^l^^^ "^^^^ equalization tax), and the terms used in this subsection shall have the same meaning as such terms have when used in such chapter, (d) EXCLUSION FOR SECURITIES ISSUED To FINANCE N E W OR ADDITIONAL DIRECT INVESTMENT I N THE UNITED STATES.— (1) EXCLUSION FROM TAX.—Subchapter A of chapter 41 (relat-

^s Stat. 809; ing to acquisition of foreign stock and debt obligations) is ^^^'^^-^iamended by adding at the end thereof the following new section:

"SEC. 4922. EXCLUSION FOR CERTAIN ISSUES TO FINANCE NEW OR ADDITIONAL DIRECT INVESTMENT IN THE UNITED STATES. " (a) GENERAL RULE.—The tax imposed by section 4911 shall not

apply to the acquisition by a United States person of— "(1) stock or a debt obligation constituting all or part of a new issue (as defined in section 4917(c)) which was issued for the purpose of financing new or additional direct investment (as defined by the Secretary or his delegate) in the United States by the foreign issuer or obligor and which qualifies under subsection (b), "(2) stock pursuant to a right to convert a debt obligation into stock without the payment of any further consideration if such debt obligation qualified for exclusion from tax under this subsection when it was issued, or "(3) a debt obligation issued for the purpose of refunding or refinancing a new or original issue which met the requirements of paragraph (1) when that new or original issue was issued.

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