Page:United States Statutes at Large Volume 87.djvu/52

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PUBLIC LAW 93-17-APR. 10, 1973

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exceed one percent of the total number of outstanding shares of such class on the first day of such calendar year) /', (F) striking the period at the end of clause (v) of such subparagraph (E) and inserting a semicolon and "or", (G) inserting after such subparagraph (E) the following new subparagraph: " (F) issued after March 31, 1973, as consideration for, or upon conversion (or in connection with the prior conversion) of debt obligations which were the consideration for, the acquisition of stock of a foreign corporation, if immediately after such acquisition the acquiring corporation owns (directly or indirectly) more than 50 percent of the total combined voting power of all classes of stock of such foreign corporation, or the acquisition of more than 50 percent (in value) of the assets of a foreign corporation, if— " (i) such corporation satisfied the requirements of sections 4 9 2 0 (b)(2)(E)(i), (ii), and ( i i i); "(ii) shares of such class were held of record by more than 5,000 persons on such corporation's latest record date before January 1, 1973; "(iii) during the period beginning on January 1, 1973, and running through the date of issuance of such shares, shares of such class were listed for trading on one or more national securities exchanges registered with the Securities and Exchange Commission; "(iv) during the period beginning on January 1, 1973, and running through the date of the issuance of the additional shares such corporation has maintained its principal oJfRce in the United States; " (v) during the period beginning on January 1, 1973, and running through the date of issuance of the additional shares such corporation has been engaged in trade or business in the United States; "(vi) during the 5-year period immediately preceding the date of issuance, the aggregate number of additional shares (other than additional shares issued under subparagraph (B), (C), (D), o r (E) of this subsection) does not exceed 5 percent of the total number of outstanding shares of such class on the first day of such 5-year period, and " (vii) the acquired foreign corporation was engaged in the active conduct of a trade or business (other than as a dealer in securities) immediately before the date of such acquisition.", and (H) striking "subparagraph (D) " wherever it appears in the text of such section 4920(b)(2) after subparagraph (F) (added by subparagraph (G) of this paragraph) and inserting in lieu thereof "subparagraph (E) ", (3)

85 Stat. 18.

[87 STAT.

FOREIGN SOURCE BORROWING BY QLFC FROM RELATED CORPO-

RATIONS.—Section 4920(d)(2)(A) (iii) is amended to read as

26 USC 4920.

follows: "(iii) a foreign corporation (not including a qualified lending or financing corporation or a foreign corporation engaged in the commercial banking business which acquires such debt obligations in the ordinary course of such commercial banking business), if such corporation

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