Page:United States Statutes at Large Volume 88 Part 1.djvu/1020

 976

PUBLIC LAW 93-406-SEPT. 2, 1974

[88 STAT.

" (B) renders investment advice for a fee or other compensation, direct or indirect, with respect to any moneys or other property of such plan, or has any authority or responsibility to do so, or " (C) has any discretionary authority or discretionary responsibility in the administration of such plan. Such term includes any person designated under section 405(c) (1)(B) of the Employee Retirement Income Security Act of Ante, p. 878.

26 USC 267.

1974

^

^

"^

"^

" (4) STOCKHOLDINGS.—For purposes of paragraphs (2)(E)(i) and (G)(i) there shall be taken into account indirect stockhold-j^gg -^i^i(.}j would bc takcu into account under section 267(c), except that, for purposes of this paragraph, section 267(c)(4) shall be treated as providing that the members of the family of an individual are the members within the meaning of paragraph (6). "(5) PARTNERSHIPS; TRUSTS.—For purposes of paragraphs (2) (E) (ii) and (iii), (G) (ii) and (iii), and (I) the ownership of profits or beneficial interests shall be determined in accordance with the rules for constructive ownership of stock provided in section 267(c) (other than paragraph (3) thereof), except that section 267(c)(4) shall be treated as providing that the members of the family of an individual are the members within the meaning of paragraph (6). " (6) MEMBER OF FAMILY.—For purposes of paragraph (2)(F),

Ante, p. 953.

26 USC 503.

15 USC 80a-51,

the family of any individual shall include his spouse, ancestor, lineal descendant, and any spouse of a lineal descendant. "(7) EMPLOYEE STOCK OWNERSHIP PLAN.—The term 'employee stock ownership plan' means a defined contribution plan— " (A) which is a stock bonus plan which is qualified, or a stock bonus and a money purchase plan both of which are qualified under section 401(a), and which are designed to invest primarily in qualifying employer securities; and " (B) which is otherwise defined in regulations prescribed by the Secretary or his delegate. "(8) QUALIFYING EMPLOYER SECURITY.—The term 'qualifying employer security' means an employer security which is— " (A) stock or otherwise an equity security, or " (B) a bond, debenture, note, or certificate or other evidence of indebtedness which is described in paragraphs (1), (2), and (3) of section 503(e). If any moneys or other property of a plan are invested in shares of an investment company registered under the Investment Company Act of 1940, the investment shall not cause that investment company or that investment company's investment adviser or principal underwriter to be treated as a fiduciary or a disqualified person for purposes of this section, except when an investment company or its investment adviser or principal underwriter acts in connection with a plan covering employees of the investment company, its investment adviser, or its principal underwriter. "(f)

OTHER DEFINITIONS AND SPECIAL RULES.—For purposes of

this section— "(1) JOINT AND SEVERAL LIABILITY.—If more than one person is liable under subsection (a) or (b) with respect to any one prohibited transaction, all such persons shall be jointly and severally liable under such subsection with respect to such transaction. "(2) TAXABLE PERIOD.—The term 'taxable period' means, with respect to any prohibited transaction, the period beginning with

�