Page:United States Statutes at Large Volume 88 Part 2.djvu/723

 88

STAT.

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PUBLIC LAW 93-618-JAN. 3, 1975

2039

sively by the recipient corporation for those purposes for which it may use that portion of the loan paid directly to it by the lender, (D) it provides that the recipient corporation may not reduce the amount of its equity capital during the one year period beginning on the date on which the qualified trust purchases qualified employer securities for purposes of this subsection, and (E) it provides that the recipient corporation will make contributions to the qualified trust of not less than such amounts as are necessary for such trust to meet its obligation to make repayments of principal and interest on the amount of the loan received by the trust without regard to whether such contributions are deductible by the corporation under section 404 of the Internal Revenue Code of 1954 and without regard to any other amounts the ^e use 404. recipient corporation is obligated under law to contribute to or under the employee stock ownership plan. (4) At the close of each plan year, an employee stock ownership plan shall allocate to the accounts of participating employees that portion of the qualified employer securities the cost of which bears substantially the same ratio to the cost of all the qualified employer securities purchased under paragraph (2)(A) of this subsection as the amount of the loan principal and interest repaid by the qualified trust during that year bears to the total amount of the loan principal and interest payable by such trust during the term of such loan. Qualified employer securities allocated to the individual account of a participant during one plan year must bear substantially the same proportion to the amount of all such securities allocated to all participants in the plan as the amount of compensation paid to such participant bears to the total amount of compensation paid to all such participants during that year. Definitions. (5) For purposes of this subsection, the term— (A) "employee stock ownership plan" means a plan described in section 407(d)(6) of the Employee Retirement Income Security Act of 1974, section 4975(e)(7) of the Internal Revenue Code of Ante, p.. 880, 1954, and in section 102(5) of the Regional Rail Reorganization Ante, p.. 971 Act of 1973, which meets the requirements of title I of the 45 USC 702. Employee Retirement Income Security Act of 1974 and of part Ante, p,, 832 26 USC 4 0 1. I of subchapter D of chapter 1 of such Code, (B) "qualified trust" means a trust established under an employee stock ownership plan and meeting the requirements of title I of the Employee Retirement Income Security Act of 1974 and of part I of subchapter D of chapter 1 of such Code, (C) "qualified employer securities" means common stock issued by the recipient corporation or by a parent or subsidiary of such corporation with voting power and dividend rights no less favorable than the voting power and dividend rights on other common stock issued by the issuing corporation and with voting power being exercised by the participants in the employee stock ownership plan after it is allocated to their plan accounts, and (D) "equity capital" means, with respect to the recipient corporation, the sum of its money and other property (in an amount equal to the adjusted basis of such property but disregarding adjustments made on account of depreciation or amortization made during the period described in paragraph (3)(D)), less the amount of its indebtedness. (g) The United States share of loan guarantees made under sub- ^°^". e"^""section (d) on loans which are outstanding at any time may not exceed " ' ' "'*'°"$500,000,000. >= J J

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